June 27, 2012
Weekly Issue 040612
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
Big news this week
Both
major news items are the launch of the LATAM
Group along with Copa, Avianca and
TACA joining the Star Alliance. On June 23 the new largest airline
alliance in Latin America, LATAM
Airlines Group, was launched. The group will be the single largest airline
group in Latin
America
and 10th worldwide. The two partners, LAN and TAM will continue to operate under
their existing brands, initially reaching some 150 destinations in 22 countries
and transporting cargo to 169 destinations in 27 countries. United Airlines welcomed Copa, Avianca and TACA on June 21 and announced it is placing its code on Avianca flights to cities in Colombia, with Avianca placing its code on certain United flights within the US, which is in addition to United’s long standing relationship
with TACA which dates back to 2006.
The US airline also a broad relationship
with Copa including code sharing on
flights from its Panama hub and United flights in the US. The two major announcements
strengthen South American airlines and the airline business in the region. We
also focused this week on air cargo, with the report from Miami Dade on freight
carried in May reaching an increase of 6.39% in the month and 4.76% in the five
months. With several carriers increasing their freight handled at MIA in double
digit growth – UPS up 33%
in May and 24% year-to-date, followed by ABX Air with 27% in May and 23%
year-to-date and Tampa with 21% in
May and 11% year-to-date. Other cargo news includes “A sense of Cargo Renewal
at American Airlines’ – and UPS making an offer of $6.5 billion
for TNT Express.
Other
news includes new services such as Turkish
Airline launching flights between Istanbul and Houston; Aerolineas Argentinas nonstop service
between Buenos Aires and Sydney, Australia; LAN Colombia beginning flights between Bogota
and Sao Paulo, Brazil; Volaris launching
new nonstop flights between Mexico and Orlando; Spirit Airlines with new nonstop flights from Dallas to Toluca,
Mexico. In tourism, while some of the new service mentioned has an impact, we
highlighted American Airlines increased
frequency to daily flights during the winter season between Miami and Montevideo, Uruguay.
Other
items include the Dominican Republic statistics confirming progress of its
aviation business; The DoT Bureau of Statistics (BTS) March traffic report; JetBlue
Airways and Lufthansa traffic
reports for May and the year-to-date.
And
finally an article from Airline Weekly with
an update on “When will Mexicana return” which is worthwhile reading. Please read all about this week in this
issue of AirWaves – and stay tuned.
LAN and TAM create LATAM Airlines Group
United Airlines welcomes Copa,
Avianca and TACA to the Star Alliance
Miami Dade reports freight carried in May 2012 and year-to-date
A sense of Cargo Renewal at
American Airlines
UPS makes an offer of $6.5 billion cash for TNT Express
Turkish Airlines to launch flights
between Istanbul and Houston, Texas
Aerolineas Argentinas to launch
nonstop Buenos Aires-Sydney, Australia
LAN Colombia launched flights between Bogota and Sao Paulo, Brazil
Etihad Airways confirms stake in
Virgin Australia
Volaris announces new nonstop service
between Mexico and Orlando, Florida
Spirit Airlines launches new
flight between Dallas and Toluca, Mexico
American Airlines increased its
Miami-Montevideo flights
The Dominican Republic’s statistics confirm progress of the aviation business
The US DOT Bureau of
Statistics (BTS) reports US airlines traffic in
March
JetBlue Airways reports
preliminary traffic for May 2012
Lufthansa carried nearly 40
million passengers through May 2012
When will Mexicana Return?
Flight Control Waves
Premium Traffic Monitor-April 2012
Released June
19, 2012
Key
points from the IATA full report on premium and economy travel in April, 2012
• The
data for April, after a strong first quarter, showed signs of weakness in
passenger markets;
•
Compared to a year ago premium travel in April was up by 5.8%, while economy
travel increased 7.3%;
• The
earlier improvement in share of premium class passengers appears to have
stopped;
• Key
business travel drivers, such as world trade and business confidence, have
fallen;
• The
April year-on-year growth rates were exaggerated, as in previous months, by the
impact of the Japan earthquake and the Arab Spring that
occurred a year ago;
•
Excluding these impacts we estimate premium travel would have been 2% points
higher than April last year;
• Economy
travel is in a similar position, resulting in underlying growth of about 5% in
April year-on-year;
• April's
weakness concentrated in the North Atlantic - which contracted by 0.3% in April, weakened by
the Eurozone crisis;
• Markets
in Asia and the Pacific remain relatively
robust.
Waves from Europe
Turkish Airlines to launch flights
between Istanbul and Houston, Texas
The
nonstop, four-times weekly service will begin on April1, 2013. Annise Parker, the mayor of Houston, stated: “The strong business connections between Houston and Turkey have created the opportunity to attract the Turkish flag carrier to
our city. The new direct service will without doubt increase business
opportunities for Houston and Istanbul.” Turkey is a significant growth market,
as much in business as in tourism, has strong cultural connections with Houston. Turkish Airlines, founded in 1933, is a member of the Star Alliance and today serves 34
domestic and 156 international destinations around the world. Viva Turkish Airlines – can’t wait for
April 2013, but it is worthwhile. Stay tuned.
Waves from the
Pacific
Etihad Airways confirms stake in
Virgin Australia
The
national airline of the United Arab Emirates confirmed on June 5 that it has
acquired a 3.96% stake in Virgin Australia Holdings. Etihad Airways believes that this equity in Virgin Australia’s domestic
operations significantly strengthens the 10 year strategic partnership forged
by the two airlines in August 2010 and will enrich the commercial benefits
which the alliance already provides for both carriers as well as increasing the
benefits to Australian consumers and visitors to Australia. Together, Etihad Airways (21) and Virgin Australia (3) operate
a total of 24 weekly flights between Abu Dhabi and Australia and passengers have access to a
combined network of more than 150 destinations. Last month Etihad Airways leased a Virgin
Australia Boeing 777-300ER for use on its route between Abu Dhabi and Kuala Lampur. Etihad began flying to Australia in March 2007 when it launched
services to Sydney. Melbourne and Brisbane were
quickly added. Nearly 2.2 million passengers have been carried between Abu Dhabi and these three cities in the
last five years. Etihad Airways has
strategic codeshare partnerships with 35 airlines around the world. Viva Etihad Airways and Virgin Australia – another great alliance. Stay tuned.
Waves from the Americas
LAN and TAM create LATAM Airlines Group
On June
22 the two airlines have completed their transaction after closing the exchange
offer, with 99.9% of TAM shares
that participated in the exchange offer agreed with deregulation of the airline
as a public company in Brazil meeting the deregistration delisting condition. LATAM Airlines Group will offer its
passengers more flights to more destinations than any other airline group in South America, initially reaching about 150
destinations in 22 countries and transporting cargo to 169 destinations in 27
countries. LAN and TAM will continue to operate under
their existing brands, with the same excellent service and quality that
characterizes them today. The leadership of both companies will be strengthened
by their combination and LATAM Airlines
Group will have greater global competitive potential in an industry
marketed by the continuing consolidation of airline business and operations. Viva LATAM Airlines Group – congratulations
to all involved and way to go. Stay tuned.
United Airlines welcomes Copa,
Avianca and TACA to the Star Alliance
Offering United customers additional reach into Latin America. At the same time as the
announcement, on June 21, United is
placing its code on Avianca flights
to cities in Colombia, and Avianca is placing its code on certain United flights within the United States. This is in addition to United’s relationship with TACA which dates back to 2006. United has a long standing and broad
relationship, including code sharing with Copa
flights from Panama hub and United flights in the US. United also served as mentor for Copa’s entry into the Star
Alliance. Viva Copa. Avianca and TACA in
the Star Alliance and more consolidation with United Airlines. More great news. Stay
tuned.
Volaris announces new nonstop service
between Mexico and Orlando, Florida
The new
twice weekly service will launch on July 14, and becomes the eighth route to
the United States operated by the Mexican low-cost
low fare airline. The airline issued a press release in which it stated that
the new service to Orlando is part of the carrier’s
international expansion plan. It presently serves US destinations in California, Nevada and Illinois and the new service consolidates
its presence in the United States. Jose Calderon, the airline’s Director of Sales and Marketing,
stated: “Our arrival to Orlando is a
response to the quality and price for all those who enjoy flying to this part
of the United States’ southeast to take advantage of the entertainment centers,
tourism attractions for children, or a center for conventions, which are the
most important in the United States.” Viva
Volaris – one to watch and follow. Stay tune.
Aerolineas Argentinas to launch
nonstop Buenos Aires-Sydney, Australia
The
Argentine airline has announced it will begin July 2,
2012 with
three weekly nonstop flights. 32 years ago, on June 7, 1980, Aerolineas launched its first flight
between Argentina and New Zealand, and the new service to Australia is operated
with an Airbus A340-200 aircraft, operating 15 hours and 50 minutes one way and
14 hours and 25 minutes on the return leg. Viva
Aerolineas Argentinas – way to go – stay tuned.
Spirit Airlines launches new
flight between Dallas and Toluca, Mexico
The
low-cost, low-fare airline has launched its new flight between the US and Texas with its second new flight
between Dallas and Toluca, Mexico. This follows its recent launch
of a similar flight between Fort Lauderdale and Toluca. The airline also serves Cancun in Mexico from the US. Eruviel Avila Villegas, governor of the state of Mexico, stated: “We are celebrating the benefit to our state of the new service, because
we are going to be more connected with one of the most important airports of
the world, Dallas/Fort Worth.” Viva
Spirit Airlines – way to go. Stay tuned.
LAN Colombia launched flights between Bogota and Sao Paulo, Brazil
The
Colombian partner of LATAM Airline Group
launched nonstop service to Sao Paulo earlier this week with two-weekly
flights operated by Boeing 737 aircraft Hernan Pasman, the executive director of the Colombian airline, stated; “We hope this new route will improve our
connectivity with Brazil, and will facilitate airline connections and promote business
interchange and tourism.” The Bogota-Sao Paulo connection
permit Colombian citizens to use direct nonstop service to Sao Paulo, one of
the most important cities in Latin America – with major economic as well as
tourism attractions. Viva LAN Colombia – As part of LATAM
Airline Group, it will have significant support - stay tuned.
When will Mexicana Return?
The
following article is from Aviation Week
and Space Technology:
“Bankrupt Mexicana de Aviacion,
first had said the Mexican carrier would resume operations in June. That date
slipped to August. But it now could slip further to an unspecified date. Holding
up the grounded airline’s return to service is the government, which has to
issue and airline operating certificate (AOC). This was pending Mexicana’s
concluding negotiations with its two largest creditors, Banorte and Bancomext,
which are ongoing. But the plot thickens. Mexicana’s pilots union says in a
message to members that political infighting between the lower house of the
legislature and the Transport Ministry may be the cause. Lawmakers are blaming
the Transport Ministry of slowing the AOC process until after the federal
elections on July 1. Meanwhile, Mexicana’s competitors, Volaris, Interjet and
Aeromexico, are happily using Mexicana’s
route authorities that the Transport Ministry lent them while the airline has been grounded. So
given all this, it remains to be seen when Mexicana will resume operations,
although an August date now looks increasingly optimistic.”
Thanks to Aviation Week and Space
Technology for the update.
Financial Waves
The Dominican Republic’s statistics confirm progress of the aviation business
According
to the Dominican Republic’s report by the Institute of Civil Aviation, (IDAC), the US, Russia and South America markets are increasing
international arrivals and departures of airlines in the country. Aircraft
movements (arrivals and departures) in the first five months of 2012 were up
7.62% compared to the same period in 2011. According to the IDAC’s report during the five month
period schedule and charter flights increased 8.32% and 4.70% respectively. Passenger
arrivals and departures during the period increased 6.7% while passengers on
scheduled flights increased 8.41% while charter passengers declined -2.04%. Punta
Cana airport led the islands airports with growth of 9.20%. Viva the Dominican Republic, It’s all about tourism, the driver of the economy – Stay tuned.
The US DOT Bureau of
Statistics (BTS) reports US airlines traffic in
March
The BTS reported this week US airlines
carried 64.5 million scheduled domestic
and international passengers in March 2012, 1.0% more domestic and 4.2% more
international passengers than in March 2011. The March 2012 passenger total was
3.6% above that of two years ago in March 2010. It also reported that
preliminary data that the system load factor of 83% and the domestic load factor
of 84.5% were record highs for the month of March. During the first three
months US airlines carried 172.0 million total system passengers, up 2.8% from
the same period in 2011. Internationally they carried 22.3 million, up 2.7%
from 2011. The first three months of 2012 continued the trend of 2011 when
system and domestic load factors were at an all time high, while the
international load factor declined from the all time high in 2010. Domestic
capacity (ASMs) decreased 0.6% in March 2012 while RPMs increased by 1.4%, resulting
in the record domestic load factor. The
international load factor in March increased as airlines grew capacity by 0.3%
while RPMs gained a larger 4.9%. In March, Delta
Airlines carried more total system passengers than any other US airline. Southwest Airlines carried more domestic passengers, while United/Continental Airlines carried the
most international passengers. The top 10 US airlines carried 79.8% of system
wide passengers, an increase of from 71.2% in March 2011. During the three
months of 2012, Delta carried more
total system passengers than any other US airline, while Southwest carried the most domestic
passengers and United/Continental carried
the most international passengers. Viva
US airlines in March and Q1 in 2012 – Additional traffic numbers can be found
on the BTS website. Stay tuned.
Lufthansa carried nearly 40
million passengers through May 2012
The
group, which includes Lufthansa, Swiss,
Austrian Airlines and Germanwings, carried
39.82 million passengers in the first five months, without including bmi numbers which was sold to IAG, for an increase of 3.6% over the
same period in 2011. Load factor for the period increased 1.1 points to 75.9%.
In May the group increased its passenger traffic by 0.3% to 9.22 million. Traffic
(RPMs) grew 3.5% on a capacity (ASMs) increase of 2%. It carried 31.7 million
passengers – up 4.1% - on its European routes, with 3.4 million passengers – up
1.5%. Load factor increased 2 points to 82.6%. In its Asia-Pacific route it
carried 2.4 million passengers – up 3.7% increasing the load factor 0.6 points
to 79.6%. Viva Lufthansa Group – stay
tuned.
JetBlue Airways reports
preliminary traffic for May 2012
The
“model low-cost, low-fare” airline reports traffic (RPMs) increased 7.4% from
May 2011, on a capacity (ASMs) increase of 4.6%, moving the load factor for the
month up 2.2 points to 84.8%. The following chart summarizes the operational
results for the month of May and year-to-date:
JetBlue Airways Traffic results
May 2012 % chg YTD
2012 % chg
RPMs (millions) 2,732 7.4% 13,501 12.8%
ASMs (millions) 3,221 4.6% 16,115 9.4%
Load factor 84.8% 2.2 pts 83.8% 2.5 pts
Revenue passengers 2,374,035 8.1% 11,702,205 12.3%
Viva JetBlue Airways – one to
watch closely – stay tuned.
Cargo Waves
Miami Dade reports freight carried in May 2012 and year-to-date
Miami continues
to be the most active air freight hub, it reported this week that total cargo
carried by the airlines to and from Miami, reached 177,815 tons in May for
an increase of 6.39% over the same month last year; with total freight
year-to-date reached 870,230 tons for an increase of 4.76% over the same period
in 2011. The following chart summarizes the top five airlines in May and their
performance year-to date – which is not the same, even though all five airlines
carried more freight in the five months of 2012. While in May, LAN and Tradewinds, both carried less
freight this year.
Airline Total tons in May % chg Total
tons YTD % chg
1. UPS 19,164 33.14% 89,060 23.85%
2. ABX Air 13,569 27.48% 60,368 22.97%
3. LAN 12,671 -11.89% 77,332 5.94%
4. Tampa 12,516 20.79% 57,451 10.81%
5. Tradewinds 11,586 -17.37% 67,106 4.71%
American Airlines is the fifth in terms of
year-to-date total cargo at MIA, handling 58,756 tons for an increase of 10.84%
over the same five months last year. See below for more information on the US flag carrier. Thanks to Duane
Riley for this monthly report. If you want to look at the complete report
contact Duane by email:driley@miami-airport.com
Viva Miami airport for being
the single largest air freight hub in the Americas, and possibly, the World. Stay tuned.
A sense of Cargo Renewal at
American Airlines
The
following is a brief summary of the article published by Flying Typers. A new head of cargo, new aircraft, and an increasing
sense that the future looks bright at American
Airlines which is receiving some brand new Boeing 777-300ERs later this
year, part of a landmark 557 aircraft order the company placed last year. Kenji Hashimoto, the newly named
President of American Airlines Cargo, is
animated: “There are several important
aspects to our fleet renewal effort that will give American a competitive edge in international logistics in years to
come. The new fleet boasts an array of wide body aircraft capable of serving
long haul markets that are critical to American’s
future success. We take delivery of our first Boeing 777-300ER in December
and the cargo-friendly aircraft will serve the Sao Paulo, Brazil market,
followed by London Heathrow from both Dallas/Fort Worth and New York JFK. We
are excited about the 777-300ER, which will have 38% more capacity, more cargo
capacity than any other aircraft in the fleet today.” Viva American Airlines Cargo – and thanks to “Flying Typers” for this
important update. Stay tuned.
UPS makes an offer of $6.5 billion cash for TNT Express
The offer
has been made on June 23, 2012 and runs through August 31 as the
US Company seeks to expand in Europe with the biggest deal in its 105 year history. TNT Express which agreed to accept the bid of
9.50 euros a share on March 19, will hold an investor meeting in Amsterdam on
August 6 to brief its shareholders on the take over, the companies said in a
joint statement this week. UPS, the
world’s largest package-delivery company, will vault into equal footing in
Europe with Deutsche Post‘s DHL, the
market-share leader, following the takeover of TNT, which it reiterated will produce
pretax savings of 400 million euros to 550 million euros after our years. “The
transaction will create a global leader in the logistics industry with more
than $60 billion in annual revenue and an enhanced, integrated global network”
the companies said. UPS reiterated
that it’s seeking acceptance of the deal format least 80 percent of
shareholders in Hoofddorp, Netherlands based TNT, spun off last year from Dutch
postal operator Post NV(PNL), which
is tendering its 29.8 percent stake. The
9.50-euro UPS bid is
5.6 percent higher than a prior 9- euro approach and 54 percent more than the
closing price on February 16, the day before talks were made public. The agreed
deal valued TNT at 13
times its previous four quarter earnings before interest, taxes, depreciation
and amortization, versus a median of 10 times trailing Ebitda in nine similar
deals, according to data compiled by Bloomberg.
Atlanta-based UPS closed
little change $78.17 the day before this announcement and has gained 6.8
percent this year, valuing the company at $75.2 billion. To contact the
reporter on this story: Thomas Mulier at:
tmulier@bloomberg.net.
Viva UPS – way to go – stay tuned.
Tourism Waves
American Airlines increased its
Miami-Montevideo flights
The
increase to daily nonstop flights began on June 14 and will go until August
21. The increase in flights is a
response to tourism operators and passengers in both countries, as a result of
the increased demand and economic interchange, culture and tourism. Lucia Zaglio, American Airlines general
manager in Uruguay, stated: “Increasing the service between the two countries to daily during the
winter months – for the first time since we launched daily flights in 2004
–will not only offer more options for the traveling public, but will also help Uruguay’s economy, including tourism and the development of business.” The service is operated with a
Boeing 767-300. Both the public and private sector in Uruguay have worked with American Airlines to develop different
promotional strategies during the past years, to generate more traffic between
the two destinations and the economy. Viva
American Airlines and daily service between Miami and Montevideo. Stay tuned.
