Unregistered tour operators still plying their trade, says CAG

Dar es Salaam. The Controller and Auditor General (CAG) has revealed the presence of unregistered tourism operators in the sector due to ineffective registration and licensing by the ministry of Natural Resources and Tourism (MNRT).

The CAG, Mr Charles Kichere in the 2020/21 performance audit report on the development and promotion of Tanzania’s tourism sector says that the MNRT had unrealistic targets for registration and licensing.

Report says the CAG interview with tourism officials indicated the presence of tourism operators who conduct their business without being registered by the MNRT.

It says most operators including those engaged in provision of accommodation facilities and most other businesses do not have physical offices and addresses, hence making it difficult to track their activities. “Similarly, interviewed tourism police officers stated that, there were cases of unregistered companies that are doing tourism business, with some of them claimed to be involved in criminal cases,” reads part of the report.

Furthermore, the report says that around 199 cases of unregistered companies were submitted to MNRT by tourism police, noting that upon verification 50 companies were confirmed to operate without registration. Reviewing fraud incidents, the report says that 12 online companies operated without registration and unlawfully obtained money by arranging tour visits from potential visitors/customers who directly communicated with them.

“Report indicated that, cases of such companies who obtained money fraudulently from visitors who contacted those companies directly was estimated to be more than $59,580 which is equivalent to Sh137 million,” reads part of report.

Report warns that presence of unregistered tourism operators pose a huge risk of provision of unqualified or substandard services as well as fraud incidents to visitors.

“Also, the image of the country in the tourism sector will be distorted if MNRT does not improve its enforcement in enhancing registration of tourism facilities and activities,” according to the report.

Regarding registration and licensing targets, the report says that the MNRT Strategic Plan 2016/17 to 2020/21 targeted registration of 2,051 tourism business operators.

However, according to an analysis of annual implementation reports from 2016/17 to 2020/21, MNRT was found to have registered and licensed 9,431 tourism facilities, which is equivalent to 460 percent of the target.

“This implies that MNRT had an unrealistic target for registration and licensing of tour operators since the target was achieved by 460 percent,” according to the report.

Availed data for auditing shows that registration of tourism facilities and activities increased from 1,269 in 2016/17 to 2,231 in 2020/21, but the number declined from 1,869 in 2017/18 to 540 in 2018/19.

According to the report, the decline could have been caused by failure to carry analysis to projected realistic numbers of registration and licensing targets.

Underestimated targets make it difficult to measure the performance of the MNRT.

Source: The Citizen

Safarilink to restart Kitale flights after two-year break

Domestic carrier Safarilink will on April 21 restart direct flights to Kitale after a two-year hiatus, following the reopening of the airstrip after renovation.

The airline that was launched in 2004 and markets itself as a tourist destination carrier will deploy a Dash 8-100 type of aircraft on the route flying five times a week down from a daily frequency to Kitale starting April 21, 2022.

Passengers heading to Kitale from Nairobi will pay Sh6,500 on a one-way ticket, prices that are relatively cheaper than when the airline stopped operations on the route.

Kitale was one of the routes operated by the carrier in the North Rift region from its hub at Wilson Airport in Nairobi.

The return of Safarilink to the North Rift town in Trans-Nzoia County is set to step up competition on pricing with other low-cost carriers planning to resume operations on the route.

The airline suspended flights to Kitale in early 2020 following the renovation of the airport.

Works on the project entailed expanding the runway to accommodate larger aircrafts.

“We will be resuming passenger operations from Nairobi to Kitale on April 21, 2022,” said Safarilink CEO Alex Avedi told the Business Daily in an interview on Friday.

Safarilink flies to major tourist destinations of Maasai Mara, Amboseli, Lewa Downs, Samburu, Lamu and Kilimanjaro, among other routes.

It also provides charter flight services across the East African region.

East African aviation formerly Fly-SAX also used to fly directly to Kitale from Wilson Airport and its comeback on the route is set to offer competition for customers flying in and out of the town known for its food production.

Eldoret, which is about 70 kilometres from Kitale, was also previously served by Fly540 which also increased its flights to the town early 2015.

Skyward Express on the other hand started flying to Eldoret in August 2015, adding to its other routes of Wajir, Mandera, Lodwar and Kisumu and Mombasa which were added later on.

Source: Business Daily

Foreign airlines in Nigeria to begin ticket sales in dollars

APG Interline E-Ticketing (APG IET), an airline servicing firm, on Wednesday announced that it would begin sales of air tickets in U.S. dollars from April 19 amidst scarcity of foreign currency in Nigeria.

“Dear travel partners, warm greetings from APG. This is to bring to your notice that with effect from April 19, 2022, GP would only accept issuing of tickets in US dollars and not naira,” APG IET said in a travel advisory to its trade partners.

The group said the move became necessary due to the difficulty in repatriating airlines’ funds stuck in Nigeria and other countries, coupled with foreign exchange fluctuations.

“This is mainly due to repatriation issues and the forex situation in the country. This would most likely be a temporary measure till the forex situation improves,” the firm said.

This is coming less than three weeks after Nigeria’s aviation minister, Hadi Sirika, asked the federal government to grant access to both local and foreign airlines to foreign exchange.

Trapped funds

Last month, Mr Sirika asked the Nigerian government to facilitate the repatriation of ticket sales proceeds trapped in Nigeria.

The minister said Nigeria currently holds $283 million worth of foreign airlines’ funds in the country.

“Aviation business suffers from issues of foreign exchange by local and foreign airlines and their inability to repatriate blocked funds. Nigeria currently holds $283mn worth of foreign airlines funds in the country. I humbly ask for the support of the Central Bank of Nigeria through the directives of President Muhammadu Buhari, to aid access of both local and foreign airlines to foreign exchange,” the minister said.

According to the Bilateral Air Service Agreements (BASAs) with countries, airline tickets are mostly sold in naira while the airlines would repatriate the funds in dollars through the country’s central bank.

The federal government in 2018 cleared $600 million blocked funds but there has since been a backlog.

Analysts say the decision by the APG IET may worsen the challenges faced by air travellers in Nigeria who may have to source forex from the black market to purchase their tickets.

The notable carriers on the APG IET platforms include South African Airways, South African Airways, Fly Dubai, Kenya Airways, Middle East Airlines, Royal Air Maroc, Rwandair, Thai Airways, Turkish Airlines, French Bee, Egypt Air, ASKY, Air Seychelles, Air Algerie, and Air Namibia.

Others are Air Panama, Air Burkina, Avianca, Bangkok Airways, Cabo Verde Airlines, Fiji Airways, Hong Kong Airlines, and Malaysian Air amongst others.

Some of the carriers which fly directly into Nigeria are South Africa Airways, Turkish Airlines, Asky Airlines, Egypt Air, Royal Air Maroc, Middle East Airlines, Rwandair and Kenya Airways.

Source: Premium Times

African traffic set for rise, but fuel costs concerning, reports AFRAA

African passenger traffic is set to rise but the recovery may be hit by the recent spike in jet fuel prices, says the African Airlines Association (AFRAA) in its latest report. 

In a statement released by the association, passenger traffic volumes across Africa have remained depressed, however the sector is making ground in its recovery. 

In March 2022, African airlines’ capacity reached 67.3% and traffic 56% compared to the same month in 2019, according to AFRAA estimates.  

AFRAA estimates the sector revenues will fall by $4.7 billion compared to 2019 levels.  In 2021, revenue for African airlines fell by $8.6 billion compared to 2019 levels.  

“In Africa, the jet fuel price hike is worrying and has the potential to slow down the travel recovery,” the association commented. “Platts estimates that the total impact of the price increases on the overall jet fuel bill will reach $86.3 billion based on an estimated average price of $115 per barrel.” 

Travel in and across Africa is continuing to make a steady recovery towards pre-covid levels.  

In February 2022, intra-African connectivity reached 72% of pre-covid levels. AFRAA estimates that this will increase to 75% in March 2022 as travel restrictions continue to ease across several African states. 

Domestic traffic in Africa accounted for the largest share of capacity and passengers carried on the continent. This is in comparison to intra-Africa traffic (flights from one African country to another African country) and intercontinental traffic (flights to and from an African country to a destination outside Africa). 

According to AFRAA: “domestic demand at 46.5% outperformed intra-Africa and intercontinental [demand] which remained subdued at 31.3% and 22.3% for intra-Africa and intercontinental respectively.” 

However, African airlines made significant ground in expanding their international operations. In February 2022 African airlines “reinstated approximately 79.9% of their pre-Covid international routes,” according to the report.  

“Five African airlines continued their international routes expansion drive and had surpassed the number of international routes operated pre-Covid,” added AFRAA. 

AFRAA also said that 10 other African airlines either re-opened suspended routes or launched new international routes. 

Source: Aerotime Hub

Cancellations, strikes and COVID-19 hits Europe as Easter travel chaos continues

Travel chaos is an inevitable consequence of almost every holiday. During some holidays, the impact on the travel industry is minimal, but during others, it can be far more disruptive.  

This year, however, holidaymakers have already seen their Easter plans thrown into disarray. With warnings of further travel disruptions still to come, Easter 2022 could possibly be one of the most disruptive periods to date, with record traffic numbers, staff shortages and COVID-related absences all adding to the chaos.  

Usually, flight cancellations during the Easter holiday season are caused by one specific reason, rather than multiple events. For example, in 2021 the Easter period coincided with Delta Airlines (DAL), one of the largest American carriers, facing crew shortages due to several factors, including staff members reporting side effect following their COVID-19 vaccinations. Other airlines, particularly in Europe, managed to avoid the same fate, and the wave of flight cancellations were specific to Delta.  

In 2019, cancellations in Europe were largely confined to Spain, as the country faced widespread strike action by airport employees. In the US, severe storms disrupted schedules in multiple states, resulting in more than 1000 cancellations across the Eastern coast, while the remainder of the US was unaffected.  

2018 saw one of the worst Easters in aviation for decades, as travel in Europe was paralyzed by Eurocontrol system failures. In the US, a cyclone, dubbed ‘nor’easter’, led to thousands of cancelations during the week before the festive weekend. 

Unprecedented chaos  

In 2022, however, it seems that many of these factors have combined to cause unprecedented chaos. And with the Easter weekend just a few days away, many European countries have already been reporting a surge in cancellations unlike anything the industry has experienced before.  

In the United Kingdom, airports have been impacted by a spike in COVID-related absences, resulting in delays and cancellations. The disruption is showing little sign of coming under control before the Easter weekend, as British Airways and easyJet, the nation’s two largest carriers, continue to suffer as a result of staff shortages and the resulting disruptions.  

Additionally, many popular holiday destinations, such as Spain and Malta, have scaled back restrictions ahead of the Easter break. Since then, Spain announced that it would be expanding its public transport schedules to cope with the increased demand, as well as the possible spillover of the chaos seen at UK airports.  

However, Spain and Portugal are still reeling from the aftermath of historic storms, with disruption expected to last for weeks to come.  

Strike action, standstills and staff shortages  

The outcome of strike action looms larger still with airport staff in at least five European countries, many of which are considered major travel destinations, having organized or announced strikes in the days leading up to Easter.  

A union strike by Italy’s air traffic control (ATC) workers is expected to have minimal effect on travel due to its short duration and preemptive measures to mitigate its impact, implemented by Spanish authorities. Similarly, unprecedented walkouts of German airport workers, which resulted in thousands of flights cancellations during the last week, appear to have led to agreements and a return to schedule. However, German airports have still reported a shortage of workers, warning that the numbers are inadequate to manage the surge in travelers during the Easter period.  

However, the impact of strike action by air traffic controllers in Poland is expected to be far greater. Conflict between ATC workers and the Polish Air Navigation Services Agency (PANSA) has resulted in staff shortages across the country’s airports leading to an unprecedented number of flight delays and cancellations. Alongside an increase in travel associated with the relaxing of COVID-19 restrictions and the wider effect of the war in Ukraine, the ongoing strike action has prompted Poland’s Civil Aviation Authority to issue a warning to passengers that the difficulties could continue.  

In Portugal, airport security companies, alongside baggage handlers from at least one major airport, called for strikes leading up to Easter. Similarly, an indefinite strike notice was issued by a Belgian trade union to Ryanair management in Dublin on behalf of the Belgium-based cabin crew of the low-cost airline. Lastly, Heathrow cargo handlers have also threatened to strike, a development that could bring air transportation in the UK to a near standstill. 

Trade unions across Europe say the strikes are a response to major blunders in post-pandemic policy and planning that has resulted in airports being understaffed and employees overworked and underpaid. If true, this could be as devastating as the pandemic itself, at least in the short term. 

However, it is too early to tell if these factors will result in the worst Easter in the history of air travel. But, so far, the signs suggest that it could well be the case, as thousands of travelers face the possibility of spending a significant part of their Easter break stranded in European airports.

Source: Aerotime Hub

Competition heats up in Uganda with startups lining up

Competition in the Ugandan air service sector is set to receive a shot in the arm with the Uganda Civil Aviation Authority (UCAA) having received four new applications for air services licenses (ASLs) after having greenlighted startup Bar Aviation (Kajjansi) earlier this year, according to local media reports.

New Vision newspaper reports that Ugandan engineering and construction company Dott Services Limited, Safari Air International Limited, freight company Panafrica Aviation Limited, and Aberdair Aviation Uganda Limited – the Ugandan affiliate of Kenya’s Aberdair Aviation Group – will defend their ASL applications before the UCAA on May 5, 2022.

They report the licenses are for the following:

  • Dott Services Limited has applied for an ASL to operate a Cessna 510;
  • Safari Air International Limited has applied for an ASL to operate Cessna Aircraft Company 421C Golden Eagle, Beech (twin piston) Baron G58, and the Fuji FA-200 Aero Subaru single-piston-powered monoplane;
  • Panafric Aviation Limited has applied for an ASL using Piper (twin turboprop) PA-34 Seneca; and
  • Aberdair Aviation Uganda Limited has applied for an ASL using DHC-8-300, E110, and Airbus H125 helicopter.

The Uganda Civil Aviation Authority (UCAA) was not immediately available for comment.

As reported, Bar Aviation launched domestic schedules from Entebbe/Kampala to four national parks in the country in an interline partnership with Uganda Airlines (UR, Entebbe/Kampala) on February 1, 2022, with a Cessna (single turboprop)208B Grand Caravan.

Uganda currently has only four scheduled active airlines, including national carrier Uganda Airlines, which holds about 46% market share (in terms of weekly aircraft seat capacity) at Entebbe/Kampala; AirKenya subsidiary AeroLink Uganda (A8, Entebbe/Kampala) has a 45% market share, and Eagle Air (EGU, Entebbe/Kampala), which provides domestic and charter flights to East and Central Africa.

Source: Ch-aviation

Dubai leads the world in business travel recovery

Dubai has outpaced London to become the top destination for global business travel this year, as the United Arab Emirates has seen the strongest travel recovery of any country, according to data from travel technology firm Travelport.

Travelport’s figures show bookings to Dubai in 2022 are outpacing its 2019 performance by 14 per cent, with the UK providing the most visitors to the destination.

The emirate ranks fifth in the world in terms of recovery for individual destinations, with leisure-focused destinations such as the Dominican Republic, Montego Bay in Jamaica and the Mexican resort of Cancun topping the list.

Travelport reported that corporate travel has made up nearly one-third (29 per cent) of Dubai’s total bookings this year, putting the emirate at the top of the list of global business travel destinations so far in 2022. London had been the top corporate destination in 2019 before the Covid-19 crisis.

Dubai’s high vaccination rate as well as hosting major events including Expo 2020 Dubai and the Dubai World Cup horse race have contributed to the recovery, said Travelport.

The Saudi Arabian capital of Riyadh has recovered at an even faster rate than Dubai this year with bookings 15 per cent ahead of 2019 levels. 

Bookings across the entire UAE are currently up 10 per cent from 2019 levels, higher than any other country in the world, added Travelport.

On a global scale, bookings have recovered to about two-thirds (67 per cent) of pre-pandemic levels.

Source: BTN

Boeing and Microsoft deepen partnership in digital aviation

As part of a significant investment in the company’s digital future, Boeing will leverage the Microsoft Cloud and its AI capabilities to update its critical infrastructure, streamline business processes and accelerate new innovations in digital aviation.

Boeing Company and Microsoft Corp. on Wednesday announced they are deepening their strategic partnership to accelerate Boeing’s digital transformation. Through the expanded collaboration, Boeing will leverage the Microsoft Cloud and its AI capabilities to update its technology infrastructure and mission-critical applications with intelligent new solutions that are data driven, further opening new ways of working, operating and doing business.

“Today’s announcement represents a significant investment in Boeing’s digital future.  Our strategic partnership with Microsoft will help us realize our cloud strategy by removing infrastructure restraints, properly scaling to unlock innovation and further strengthening our commitment to sustainable operations,” said Susan Doniz, Boeing chief information officer and senior vice president of Information Technology & Data Analytics. “Microsoft’s demonstrated partnership approach, trusted cloud technologies and deep industry experience will help us achieve our transformation goals and strengthen Boeing’s digital foundation.”

“Boeing and Microsoft have been working together for more than two decades, and this partnership builds on that history to support Boeing’s digital future by helping it optimize operations and develop digital solutions that will benefit the global aviation industry,” said Judson Althoff, EVP and chief commercial officer at Microsoft. “The power of the Microsoft Cloud and its AI capabilities will serve as the core component to Boeing’s digital aviation strategy by providing flexible, agile and scalable solutions that are intelligent and data driven on a secure and compliant platform.”

This partnership builds on a long history of the companies working together. As a leader in aerospace, Boeing was among the first to leverage the Microsoft Cloud, centralizing many of its market-leading digital aviation applications on Microsoft Azure and using artificial intelligence to drive customer outcomes and streamline operations. Today’s announcement will enable Boeing to unlock tangible and sustainable value held within its vast data estate and reinforces our mutual commitment to lead aerospace innovation for decades to come.

Source: Microsoft

UAE Signs New ICAO Aviation Cybersecurity Collaboration Agreement

A new agreement signed by government officials from the Minister of United Arab Emirates (UAE) Cabinet Affairs and the International Civil Aviation Organization will form a new ICAO-UAE partnership to improve aviation cybersecurity strategy and policy for aviation stakeholders in the Middle East.

The agreement was signed during an ICAO mission to the UAE last week, where ICAO Council President Salvatore Sciacchitano addressed the UAE’s “High Level Conference on Cybersecurity in Civil Aviation,” which is held as part of the annual World Government Summit in Dubai. In his speech, Sciacchitano highlighted the presence of some of the legacy systems and networks that comprise what he describes as the backbone of aviation’s “information architecture” or “system of systems.”

“Legacy systems most especially can contain outdated hardware and software that is not always easy to replace. They also can pose inherent security vulnerabilities, being unable to accommodate latest security and encryption best practices,” Sciacchitano said.

While the pandemic led to a historic decrease in the annual volume of passenger-carrying airline flights between 2020 and 2021, a report from Eurocontrol’s new cybersecurity data collection initiative showed a major rise in the number of cyber attacks reported to the agency by aviation companies based in Europe. Several recent cyber attacks that have caused disruption to airlines, airports, and aviation service providers have also shown how large of a target the system of systems is for hackers and bad actors.

In February, Swissport, an airport ground services provider with operations at 285 airports in 45 countries, reported a ransomware attack that took some of its main information sharing systems temporarily offline. Newsweek published an article last year showing how the personal data of more than 4 million passengers was compromised in a cyber attack targeting several airlines that operate in the Asia Pacific region including Air India, Malaysia Airlines, Singapore Airlines, and Finnair.

“The pandemic has also fostered a significant public expectation for touch-less technologies to make their future traveller experience healthier and safer, meaning that we face an entire new wave of compartmentalized digitalization, and still further system-of-systems vulnerabilities arising,” Sciacchitano said in his speech.

The UAE-ICAO aviation cybersecurity agreement will focus on collaboration between the two sides that fosters knowledge and information sharing leading to “accelerators, innovation in future civil aviation, and cybersecurity,” according to ICAO’s announcement of the new agreement. ICAO’s agreement with the UAE government is the agency’s latest progress on standardizing the way the global aviation industry responds to and regulates cyber attacks against aviation assets.

The agency adopted Assembly Resolution A40-10—Addressing Cybersecurity in Civil Aviation, during the 40th Session of the ICAO Assembly that calls upon ICAO member-states to implement the ICAO Aviation Cybersecurity Strategy, first published in October 2019. Sciacchitano also advocated in his speech for more ICAO member-states to adopt the Beijing Convention and Protocol of 2010 to establish a global legal framework for dealing with “cyberattacks on international civil aviation as crimes.”

“In addition, ICAO has been developing an international aviation trust framework to support the cybersecurity and cyber resilience of civil aviation in the air navigation domain,” Sciacchitano said. “This is a very important project, probably the most important of recent years, to support the secure global exchange of digital aviation information, and will include procedures, technical specifications, and guidance material supporting current and future global network requirements.”

Source: Aviation Today

The State Of Online Travel Agencies

The online travel market is expected to grow 18% in 2022 to $76.7 billion, a figure just shy of 2019 gross bookings, new research from Phocuswright reveals.

According to the U.S. Online Travel Agency Market Report 2021-2025, OTA gross bookings are on track to surpass pre-pandemic levels in 2023, though international travel will continue to recover slower than domestic.

For 2021, OTAs delivered $65.2 in gross bookings, reaching 82% of pre-pandemic levels. Overall, OTAs accounted for 24% of gross bookings in the United States in 2021, up from a 20% share in 2020.

Phocuswright’s research reveals that for the U.S. core OTA business (excluding Vrbo and Egencia), Expedia and Booking collectively accounted for roughly 93% of the OTA leisure and unmanaged travel business market in 2021.

Globally, Expedia reported gross bookings of 67% and Booking 79% compared to 2019 levels. Compared to 2020, Expedia nearly doubled its global gross bookings in 2021, while Booking more than doubled its 2020 figure.

Elsewhere, smaller OTAs including CheaOair, Hopper and HotelTonight collectively rose 60% in 2021 from 2020.

OTA vs. supplier-direct

In 2021, OTAs regained share of the total online market, rising from 35% to 37%. However, supplier websites maintained their majority stake in the U.S. online travel market, with a 63% share of online gross bookings.

The hotel segment remains the only one where OTAs continue to outrun supplier websites, though not by much. In 2021, OTAs accounted for 52% of the hotel online market, but share is expected to decline to 48% in 2025.

For air and car rentals, though supplier websites are the preferred booking channel, OTAs gained share in both segments, with online air gross bookings capturing 20% in 2021 compared to 19% in 2020, and car rentals at 35%, up from 32% in 2020.

Mobile

According to Phocuswright, mobile has been a pandemic-era winner, promoting safer and seamless travel, and OTAs are paying more attention to their apps.

In 2021, the majority of Booking’s mobile room nights transacted through its app, while competitor Expedia has expressed its intentions of becoming an app-first company.

Beyond one-time booking interactions, OTAs are viewing apps as a way to foster customer retention and ongoing engagement.

More than half (51%) of OTA gross bookings were transacted via mobile in 2021, 10% more than pre-pandemic mobile share.

“Mobile will continue to gain share in the years to come as OTAs enhance and invest in their mobile product, though at a slower rate than at the pandemic’s onset,” the Phocuswright report states.

“As travel normalizes, desktop will recapture some share lost to mobile since the customer and product mix will be better aligned to desktop bookings (e.g., more international travel, longer trips and air travel).”

Source: Hospitalitynet