US Travel Industry Seeks Federal Action to Boost International Visitation, Spending

The U.S. Travel Association is calling on the Biden administration to enhance efforts to boost international visitation to the U.S. amid a declining trade surplus.

Citing new data released by the U.S. Department of Commerce, the organization points out that the trade surplus dropped to just $4 billion last year, down from an all-time high of $85.9 billion in 2015.

In response, U.S. Travel is now calling for urgent federal action to rebuild inbound travel and reverse the disconcerting trade surplus trend.

One of the steps outlined is taking further action to lower visitor visa interview wait times, which continue to exceed an average of 400 days for first-time applicants in the top 10 visa-requiring inbound markets.

U.S. Travel is also urging the government to end the COVID-19 vaccine requirement for international visitors to the U.S. and address inefficiencies in the air travel system as part of the upcoming Federal Aviation Administration (FAA) reauthorization.

“Travel has historically generated an annual trade surplus that meaningfully reduced the U.S. trade deficit,” U.S. Travel President and CEO Geoff Freeman said in a statement. “The latest trade data is a wake-up call for immediate federal action to boost this essential industry and increase travel exports to benefit the entire U.S. economy.”

“It’s no coincidence that the industry’s highest trade surplus occurred at a time when the federal government was making a concerted effort to increase inbound travel,” added Freeman. “Facilitating more inbound travel—and effectively lowering the overall trade deficit—should be a top economic priority for the Biden administration.”

The Biden administration previously set a goal of attracting 90 million international visitors and $279 billion in spending annually by 2027.

Source: Travel Pulse

The Gen Z traveller: How zoomers are redefining the travel industry

Experts believe that Gen Z is playing such a crucial role in shaping how we all consume, buy and engage with brands.

This is the generation, colloquially known as zoomers, born between 1997 and early 2012 – a highly adaptable age group with the oldest turning 26; and the youngest 11 this year.

Travel experts are of the view that different generations approach travel differently – especially incoming younger generations.

“They’ve got varying priorities, values, and overall outlook on what they want to get from their travels and it’s the Gen Z traveller that is actively redefining what it means to travel that in turn will affect the economy, businesses, and people across the globe,” David Shevil, group head of marketing for Premier Hotels & Resorts said.

“It’s hard to say with any kind of certainty, but there are some noteworthy trends that are already taking hold.”

Gen Z travel trends in 2023

Gen Z characteristics: 82% said they trust a company more if it uses images of actual customers, giving them a chance to see a new place through the eyes of locals.

Gen Z purchasing behaviour: 68% read multiple reviews before making a purchase.

Gen Z money habits: Experiences matter as 65% of Gen Z respondents said they would rather take a dream vacation than purchase a new car.

Gen Z leisure behaviour: 97% use social media as their primary source of inspiration so make sure you’re on the right channels. TikTok is becoming the most popular form of social media being used by Gen Z.

“This travel segment has increased by as much as 30% from previous years and we are seeing more and more Gen Z travellers and guests searching our website for travel deals,” Shevil said.

He added that Generation Z has big travel plans for 2023. “These young travellers prefer solo travel over travelling with friends and appreciate great culture in affordable destinations rather than luxury resorts,” Shevil said.

He also quoted the European Travel Commission which explained that young travellers are more likely to:

– Return and add more value to destinations over time.

– Discover new destinations.

– Incorporate technology on their trips.

– Gain personal cultural benefits and contribute to the places that they visit.

– Commonly known as life enthusiasts, they are more likely to return to a destination over time due to their focus on the quality of travel accommodation (their self-reward) and the type of shopping and nightlife while on holiday.

Explore the unexplored

As immersive explorers, Shevil said there’s a growing desire from Gen Z to explore the unexplored. “They want to know where they can go that hasn’t already been covered. But what exactly do those travel changes look like?”

He added that it’s worth noting that Gen Z adventurers are travelling because they may find the next place to expand business.

“This is a reason that brand-new tourism hubs have begun to arise providing new opportunities,” Shevil said.

He also believes that for Gen Z, the journey is just as important as the destination.

“They value a high-end travel experience where all of their needs are met on a flexible timeline, avoiding the hassles of commercial travel,” he said.

“Basically, they want to start their vacation as soon as they leave for the airport.”

Shevil added that if businesses want to gain Gen Z’s attention, they need to work on improving their user experience and prioritise treating them as an individual audience.

Technology rules

Having been born into a world of 24/7 access to the internet, Shevil said that Gen Z is the most digital-savvy generation, with an intuitive knack for all things tech.

“Much like most other industries, travel has seen some incredibly convenient technology-based innovations in recent years. If there’s an app that makes travel easier, Gen Z is highly likely to make up a large portion of that app’s most frequent users.”

“They’re booking their accommodations, checking flights, and finding amazing deals on travel with the help of technology.”

Meanwhile, Shevil said that this prioritisation of technology should be a hint to other industries to get on board.

“If your business is still missing an app or has an unreliable website, you’re losing your Gen Z audience,” he said.

“They’re always using their devices, which means you need to meet them where they are and ensure you’re optimising everything for mobile.”

A new generation of values-based travel behaviour

With new generations come new values and ideals, Shevil believes that Gen Z is no different. “In fact, value-based decisions are a defining attribute of this generation and one that guides its travel decisions. Gen Z is doing travel differently – it’s not just about the destination, after all – the journey is just as important.”

He added that Gen Z is also more likely to give back to a community or a purpose. “They’re more concerned with volunteering, eco-tourism, or attractions that partner with local causes than other demographics.”

He explained that one theory to explain this is that Gen Z grew up with an awareness of climate change and caring for the planet, so they are likely to focus more on sustainability, ethics, inclusivity, and responsible travel.

“And 72% said they’re more likely to buy from a company that contributes to social causes.”

Meanwhile, according to Telus International, Gen Z is more concerned about sustainability than previous generations when it comes to travelling.

“56% said they’d want to stay in green or eco-friendly accommodations, and 60% are looking for more environmentally friendly means of transportation once they arrive.”

“54% of Gen Zers say they’re willing to pay higher rates to use a travel service provider that demonstrates environmental responsibility, compared to 48% of millennials,” Telus International said.

Shevil added that the power of a strong media presence, effective online communication, and personalised customer service and support cannot be understated when working with this audience.

“With each generation, travel is shaped in a new way and as Gen Z’s habits and preferences grow in prevalence, so will their impact on travel, and that impact is likely to change business for years to come,” he said.

“If you pay attention now, you may be ahead of the curve.”

Source: IOL

Tourism key driver of economic growth in Africa and Caribbean

Jamaica Tourism Minister Hon. Edmund Bartlett makes a case for helping Africa’s tourism stating the Caribbean is in a position to help.

The need to ensure the resilience of tourism, given its importance as a key driver of economic growth, has been highlighted by Former Prime Minister and Statesman-in-Residence at the PJ Patterson Institute for Africa-Caribbean Advocacy, University of the West Indies (UWI), The Most Hon. Percival James Patterson.

The former Prime Minister, who among other portfolio responsibilities also served as Minister of Tourism, was keynote speaker at today’s opening session of the African Caribbean Tourism Summit at the inaugural Global Tourism Resilience Conference, being held at the UWI Regional Headquarters, Mona.

Mr. Patterson highlighted opportunities arising from the industry and the importance of building on the historical link between the Caribbean and the African Diaspora. Mindful of the era pre and post the COVID-19 pandemic, he said there was absolutely no doubt to the urgency of pushing forward with mobilizing the African and Caribbean Diaspora in the fields of trade, investment, science, sport, culture and entertainment.

In that regard, Mr. Patterson said:

With the decline of most traditional crops in Africa and the Caribbean, “tourism has become, for most of us, the cornerstone on which we are endeavoring to build sound economies (and) given its magnetic link to agriculture, to manufacturing and the inseparable connections with the creative industries, entertainment and services, tourism has become the pillar on which sustainable growth and accelerated development must now depend,” noted Mr. Patterson.

He also noted that African countries possessed varied appeals. Mr. Patterson outlined that with proper planning and effective marketing there would be a growing demand to visit African destinations and this could benefit the Caribbean through shared vacations and with the creation of a fertile ground for people-to-people contact and increasing airlift and charter flights between both regions.

He posited that the strengthening of South-South collaboration for growth in tourism rested on the two inextricably linked pillars of training and technology. With the pandemic having put greater pressure on the tourism sector with the loss of workers, Mr. Patterson stressed that “the skillsets needed to push the industry forward require training quickly and intensively.” He indicated that this was an area in which Jamaica and the Caribbean could offer support to African countries now building and expanding their tourism industry.

While sharing similar concerns, Minister of Tourism, Hon. Edmund Bartlett, noted the serious damage inflicted by the pandemic on Africa adding that with the continent looking to tourism to drive recovery, the Caribbean was in a position to help.

“They are the new frontier for they are learning the art of entertainment and utilizing the culture to add value to their economic well-being, and the Caribbean can help.”

Mr. Bartlett added, “We can also be the bridge head to the richest and most lucrative market for tourism in the world, North America.”

The historic Global Tourism Resilience Conference is being attended by several tourism ministers from African and Caribbean countries and Minister Bartlett, who co-chairs the Global Tourism Resilience and Crisis Management Centre, said the Caribbean partners should use the conference “as a platform for the beginning of that convergence that will bring Africa and the Caribbean together to move into the market that they want.”

He noted, however, that while Africa was open to receiving more, the Caribbean also had the capacity to receive even more from Africa and the conference would explore how there could be a full interchange and create areas of convergence in various aspects of tourism activities.

Source: E-Turbo News

UAE jobs: Travel and tourism sector creates 32,000 jobs in 2022

The job market in the UAE’s travel and tourism industry has reached pre-pandemic levels as the ‘revenge travel’ that started after Covid-19 restrictions were lifted has provided a much-needed boost to the country’s key sector.

The UAE was one of the first countries to reopen its economy for foreign visitors after Covid-19, which substantially aided the recovery of the travel and tourism industry.

According to World Travel and Tourism Council (WTTC), the number of jobs in Dubai and Abu Dhabi are forecast to have reached 305,000 in 2022, the same level as before the pandemic. This is compared to 273,000 people employed in the sector in 2021, thus, creating 32,000 jobs last year.

Dubai’s appeal as a global tourist destination has grown exceptionally in the last couple of years. It has been ranked the best destination for holidaymakers in the world for 2023 — for the second year in a row – by Tripadvisor Travellers’ Choice Awards and ranked 2nd most attractive city for tourists in 2022 by Euromonitor.

According to Dubai Economy and Tourism, the number of international visitors jumped over 97 per cent to 14.36 million in 2022, but lower than 2019 figures of 16.73 million.

“City destinations in the UAE continue to grow in popularity for travellers from around the world. Although these key cities were heavily affected by the pandemic, they have shown incredible resilience and signs of growth. The UAE’s travel and tourism sector is on the road to recovery, demonstrative of the wide appeal tourist destinations across the region continue to hold for international travellers,” said Julia Simpson, president and CEO of WTTC.

“But it’s crucial that the national and local governments continue to recognise the economic importance of travel and tourism for the local and national economies, jobs and businesses.,” said Simpson.

Global tourism body has projected that Dubai tourist spending will jump by over 46 per cent to nearly $43 billion (Dh158 billion) by 2032, as compared to $29.4 billion (Dh108 billion) at the end of 2022, as the emirate’s tourism sector is set to expand on the back of government initiatives to attract more foreign visitors to the emirate.

In Dubai, WTTC said the numbers are forecast to rise by 13 per cent to 262,000 jobs while Abu Dhabi employment numbers are set to reach just over 43,000 in 2022, a modest increase of 0.4 per cent increase in job numbers since before the pandemic.

The report showed that there were just under 262,000 in Dubai and almost 43,000 travel and tourism jobs in Abu Dhabi in 2019.

The global tourism body projected the sector’s contribution to Dubai’s economy is forecast to have reached Dh46 billion, only 10 per cent below 2019 levels. While Abu Dhabi’s travel and tourism sector is expected to have grown to Dh11 billion last year, just 12 per cent below 2019 levels.

In 2020, the sector’s contribution in both cities dropped by more than half. In Dubai, it fell to Dh19.5 billion and in Abu Dhabi, it fell to just Dh6 billion.

Source: Khaleej Times

Airbus, Boeing go head-to-head in battle for Uganda Airlines order

After a duel in 2018 for the supply of Uganda Airlines long-haul fleet that ended with Airbus’ A330-800neo carrying the day with an order for two aircraft, the world’s two largest aircraft manufacturers are back in the trenches, this time for a potential order of up to six aircraft.

Although it is an outlier, Brazil’s Embraer is also understood to have thrown its hat in the ring, making for a three-way competition.

Delegations from Airbus and Boeing were in Kampala this week to make pitches for their respective models, as Uganda Airlines approaches decision time for a selection of the aircraft that will power its mid-range passenger and cargo fleets.

Industry sources confirmed that at different times during this past week, teams from both manufacturers met with Uganda Airlines management and officials from key aviation stakeholder organisations such the Ministry of Works and Transport as well as sector regulator Uganda Civil Aviation Authority.

Confirmed meetings

Without divulging details, Uganda Airlines chief executive Jenifer Bamuturaki confirmed the meetings.

“Everyone is pitching: Airbus is pitching, Boeing is pitching and Embraer is pitching, but as Uganda Airlines, what we are interested in is a mid-range aircraft,” she told The EastAfrican.

The airline urgently needs an aircraft to fill the gap between the 76-seat Mitsubishi CRJ-900 and the 257-seat A330-800. Although the operational radius of the CRJ-900 can cover the airline’s envisaged African route network, it is severely weight-limited, imposing a trade-off between loading passengers and baggage.

There is also a financial imperative to the midrange. Uganda Airlines, which saw its loss widen to Ush266 billion ($72.5 million) for the 2021-22 fiscal year, partly blames its financial position on slow route development and a mismatch between passenger volumes and the higher cost of operating its Airbus A330 on the Entebbe-Dubai route — its longest sector. 

Because of the passenger profile on the Dubai route (mainly traders), the airline is not maximising yield from the A330 because its business and premium economy cabins, which have a combined 48 seats out of the 257 on board mostly go unsold.

Aviation fuel price

A spike in the price of aviation fuel has pushed the hourly cost of operating the type to $15,000, making it uneconomical to operate on some routes.  In an earlier interview with this newspaper, Ms Bamuturaki said that they were interested in an aircraft that can adequately serve the heavier routes such as those planned for West Africa, while also capable of substituting the A330 on routes such as Dubai, London and Mumbai, which are expected to launch later this year.

“We want an aircraft that can do Dubai, Mumbai or London when we have low loads. We also want a mid-range one on those routes where the A330 is either too big or unavailable,” she explained.

At stake for the manufacturers is an order of up to six aircraft: Four in the 100-plus seat category and two freighters; one with a capacity of 30 tonnes to serve regional routes and another with 60-tonne capacity for the intercontinental market.

Buy two tranches

The aircraft will be bought in two tranches, with two passenger and a cargo planes coming in the short term followed by another pair of passenger aircraft within a five-year timeframe.

Sources familiar with the discussions say Airbus is offering its A321, but it was not clear which specific variant of the type it was pitching. Meanwhile, Boeing is understood to have made presentations on all variants of its B737 Max family for the airline to select.

If range and size are the primary considerations, then the race will be between Airbus’ A321-LR and A321-XLR versus Boeing’s Max 8 and 9. With a capacity of between 162 and 178 passengers in a two-class configuration, and a range of 3,550 nautical miles, the Max-8 or its larger sibling the Max-9 with similar range but with five extra seats, can easily reach London.

The Max-7 with 3,850nm range and 138-153 passenger capacity, and the Max-10 with 3,300nm range but with 188-204 passengers are, however, likely out of contention for now, because they are yet to secure US Federal Aviation Administration certification.

Also, the Max-10 would also be restricted in terms of range while the Max 7 would impose a seat-mile cost penalty because of limited seat capacity.

According to analysts, however, a big selling point for Boeing is scalability. Looking at an eventual fleet of four aircraft, between the Max-7 and 9, Uganda Airlines would have more flexibility in managing capacity in response to varying market opportunities. But that will come at the price of fleet complexity and added training and tooling costs.  At a minimum of 180 seats, the A321 could prove too big on some regional routes.

Source: The East African

Agency Shifts Focus To Hidden Tourism Sites

The Kenya Tourism Board (KTB) has shifted focus to marketing hidden treasures of the country, as it eyes to improve earnings.

The State Corporation is working with other stakeholders, including Kenya Wildlife Services (KWS) and the county governments, in unlocking domestic tourism potential in the country’s cultural heritage, places of natural beauty, eco-tourism and places of historical importance.

According to KTB Marketing Executive, Ms. Margaret Kamau, there are 1,052 (United Nations Educational, Scientific and Cultural Organization) Unesco World Heritage Sites located in 165 Party States, out of which Kenya hosts six sites: Fort Jesus, Lamu Old Town, Sacred Mijikenda Kaya Forests, Great Rift Valley, Lake Turkana National Park and Mount Kenya National Park/Forest.

She said although, coastal beach holidays and wildlife safaris still remained attractive, the Board was also aggressively marketing alternative core tourism products that the country could offer from its diverse niches, including culture, cuisine, entertainment, sports, nature (beach and safari) and Meetings, Incentives, Exhibitions, and Conferences (Mice) tourism.

The KTB Marketing Executive said the country is blessed with many destinations that most Kenyans can visit, including little known physical features such as waterfalls, craters, gorges and lakes, prehistoric sites, national museums and wild animals, among others.

To harness domestic tourism potential, she added, more efforts are required to locally create more awareness about tourists’ attractions such as Thim Lich Ohinga stone fortress in Nyanza, the grave of explorer David Hannington in Mumias, the Kipteber meteorite historical mountain where the seven sub-tribes of the Kalenjin are said to have originated and Italian war memorial church, that housed over 600 prisoners of war in Mount Kenya region among others.

Ms. Kamau stated that most local and foreign tourists only know of the generic attractions  such as  the Maasai Mara and Mombasa. This she noted has not only put a strain on the facilities and capacity but has also left the tourism industry largely dependent on a few attractions.

“We have also been looking to grow domestic tourism using the “You deserve a holiday” campaign to get the residents excited about the various destinations that their country has to offer. There are many Kenyans who are interested in travel but lack sufficient information,” she continued.

The state body which aims to drive and support the effective marketing of Kenya’s tourism products, also runs the Magical Kenya website. It is on this website that in addition to showcasing Kenyan tourist destinations, also lists discounted packages for local residents.

She was speaking during the “You deserve a holiday” campaign sponsored by Magical Kenya in Nakuru that brought together officials from Baringo and Nakuru County Governments, domestic airlines, tour operators and hoteliers.

The Marketing Executive indicated that the “You deserve a holiday” campaign also covered all destinations in Kenya that offered rock climbing, bird watching, golf tourism, adventure sports, leisure tourism and wildlife tourism.

“We are committed to expanding areas that have previously not been showcased as well as those that require to be transformed into top travel experiences,” she said.

Ms. Kamau pointed out that conclusion of the exercise will give the board an edge in marketing the areas and help the country generate extra income.

As a way of creating awareness, the board has visited some of the historical, cultural and geographical sites in the parts of the country in a bid to identify their niche segments and offer advice on provision of affordable packages and experiences that meet the needs of potential local travelers.

“Despite Kenya’s reputation as a hub of rich tourism, the focus has been largely on wildlife tourism; ignoring the several forms of tourism that the country has to offer. We are working with industry players such as hoteliers, tour companies and guides in drawing attraction to the hidden gems that Kenya has in store,” she added.

Ms. Kamau observed that apart from bullfighting, Kakamega Forest and Mt Elgon, are among major tourist attractions in Western Kenya.

Nyanza region for instance the KTB marketing executive added, had rich cultural and archaeological diversity and is home to the famous Kit Mikayi (ancient rocks heaped on another, which does not disintegrate even when there is earthquake or inclement weather.

It is also home to legends Lwanda Magere, Okore Ogonda, and Gor Mahia, among others, famed for courage in protecting their communities against external aggression.

“You deserve a holiday” initiative was also encouraging the private sector and local communities to develop “out of park” tourism activities such as mountain biking. The promotion is further encouraging visits to cultural and spiritual sites, cultural performances and community walks.

Ms. Kamau challenged Kenyans to drop the notion that tourism is only a preserve for the wealthy or those with disposable income and firms in the tourism sector to also come up with reasonable packages affordable by most Kenyans.

“We have for a long time relied on too much on foreigners to build our tourism, it is now our time as locals to spur the growth of our domestic tourism to the next level by playing a major part in that growth,”

She said the “You deserve a holiday” initiative has led to the growth of domestic tourism in the country by breaking the reliance on seasonal tourism cycles that largely depends on foreigners.

“Domestic tourism is as important as international tourism and we want Kenyans to embrace and promote it. We have products that are tailored to the local tourists. There is enough to be seen in Kenya from Turkana to Naivasha. In Australia, for example, depends majorly on domestic tourists as facilities have been packaged to cater for every group right from the bottom of the pyramid,” noted the marketing executive.

Mr. William Kimosop, a trade and tourism officer in Baringo County Government, stated that colossal investments as well as political goodwill are needed to prepare the country for domestic tourism as the state continues marketing it.

“We are sitting on a goldmine as far as domestic tourism is concerned and the opportunities will become a reality if county governments and their leaderships take up the issue of infrastructure and marketing seriously,” he said.

Mr. Kimosop urged a shift from the “traditional” tourism that only promotes the coast at the expense of other equally rich areas around the country.

“We have depended so much on the coast but the feeling at the moment is for the government to turn attention to other markets, and tap into the cultures of other ethnic groups to boost tourism earnings,” argued Mr. Kimosop.

For long, Mr. Kimosop said, tourism in Kenya has been left in the hands of foreigners who understand little of the local culture and consequently do little to promote it beyond getting back returns from their investments.

Customer Relations Officer at Bonfire Adventures Tour Operators Mr. Joseph Mutua indicated that Kenya is a favourable destination for adventure, sports, game viewing as well as romantic expeditions.

“For years, the tourism board has focused on the beaches and safari but we have the second tallest mountain in Africa after Kilimanjaro which is more scenic,” he said.

“Agri-tourism is also a big opportunity especially in the tea and coffee sectors, being among the top exchange earners in the country,” he added.

Mr. Mutua said that it is important to realize that for domestic tourism to succeed, a greater part depends on the goodwill of the locals more than the other industries.

“The locals must be happy with the visitors and the security of the knowledge that the presence of the visitors around will not affect their operations either socially, economically or even politically and that they will not impose values that are not welcomed in their society. This can easily be achieved when the locals are engaged by involving them in dialogues relating to the influence of tourism in that particular area,” noted Mr. Mutua.

Source: KNA

Etihad Cargo, Astral Aviation sign MoU to boost Africa-UAE logistics

The cargo and logistics division of Etihad Airways, Etihad Cargo, has signed a memorandum of understanding (MoU) with Astral Aviation to expand the partnership between the two parties and enhance the cooperation between the regions of Abu Dhabi and Nairobi, further growing Etihad Cargo’s reach into the African market.

This latest agreement builds on Astral Aviation’s expanding partnership with Abu Dhabi, which will see Astral Aviation operating more flights to the United Arab Emirates’ (UAE’s) capital, supported by Etihad Cargo.

Through the comprehensive MoU, Etihad Cargo’s customers will benefit from additional cargo capacity out of Nairobi through the introduction of additional services from Nairobi to Etihad Cargo’s hub in Abu Dhabi from April 1.

In 2021, Etihad signed a service level agreement (SLA) with Astral Aviation to provide reliable and cost-effective air freight solutions for the transport of pharmaceuticals across Africa.

The SLA was Etihad Cargo’s first pharmaceutical interline agreement and ensured the carrier’s partners’ full compliance with the latest International Air Transport Association pharmaceutical and gross domestic product regulations and standards.

Etihad Airways global sales and cargo senior VP Martin Drew says the signing of the MoU demonstrates Etihad Cargo and Astral Aviation’s shared commitment to joint network development and providing a more comprehensive solution to international cargo transportation between Nairobi and Abu Dhabi.

“The partnership will enable Etihad Cargo to expand its African network and offer increased cargo capacity both into and out of Nairobi, strengthening the connection between the two cities via this key route and further developing this critical African gateway,” he says.

Astral Aviation CEO Sanjeev Gadhia says the MoU with Etihad Cargo will enhance accessibility and connectivity through Etihad’s Abu Dhabi hub.

“We look forward to transporting perishables from Kenya into Abu Dhabi and beyond on Etihad’s network, and on the return with cargoes from Asia, [the] US and Europe to connect into Astral’s intra-African network in Nairobi. This cooperation will create new opportunities for our respective clients and will be a win-win partnership,” he says.

The agreement will see Astral Aviation and Etihad Cargo sharing up to 50% of all available capacity on the new Nairobi-Abu Dhabi-Nairobi flights, increasing the capacity Etihad Cargo offers air cargo and air mail customers.

Through Etihad Cargo’s Abu Dhabi hub, the carrier’s global network will offer connectivity to destinations around the world. Etihad Cargo will use its expansive road feeder service network to transport cargo arriving in Abu Dhabi from Nairobi to destinations throughout the UAE and other offline stations.

Source: Engineering News

Kenya starts unwinding support, cuts Sh10 billion from Kenya Airways bailout

The Kenyan government is moving forward with its plans to halt support for Nairobi-based Kenya Airways (KQ) by the end of 2023, having now trimmed KQ’s bailout package.    

The Kenyan National Treasury has cut Sh10 billion ($80 million) from the package, a 33% reduction from the original figure, according to a Business Daily report.  

The Kenyan government initially approved a Sh34.9 billion ($278 million) bailout package in December 2022 in a bid to help the airline repay its arrears to lessors.   

Kenya’s government is the majority shareholder in KQ, with a 48.9% stake. KQ has received a total of Sh98.2 billion ($784 million) in bailout loans from the Kenyan government. 

However, the East African state is keen to turn KQ’s misfortunes around, with the flag carrier having last turned a profit in 2012. 

Kenyan government keen to sell controlling stake in KQ to investors 

In mid-December 2022, the Kenyan government announced its intentions to pair the Kenyan flag carrier with a strategic investor, which would involve selling its entire stake in KQ (48.9%) to interested parties.   

In an interview with Bloomberg, Kenya’s newly elected President William Ruto revealed that Kenya was actively exploring options and potential partnerships to make KQ a “profitable entity”.   

Delta Air Lines was among the potential airline partners with which the government was interested in partnering, stating that discussions with the airline were at a ‘preliminary stage’.   

Source: Aerotime Hub

Ghost flights are a phantom problem

“Ghost flights” are among the most misunderstood phenomena in air transport.

A ghost flight has no formal definition but is generally considered to be a flight that operates on less than 10% passenger capacity.

With aviation’s environmental footprint under close scrutiny, it is understandable that the issue of such flights has been getting attention. But how bad is the problem?

One report in the UK’s Guardian newspaper in September 2022 said that 5,000 “empty”, and 35,000 flights with less than 10% occupancy, had flown in the United Kingdom since 2019.

The story had significant flaws, however. Firstly, this period covered the pandemic, which was completely unrepresentative of a normal air transport market. Secondly, no context was given around the numbers. 40,000 sounds a lot, but in the context of the 4,566,382 flights that took place in the United Kingdom over that period—even during the unprecedented COVID-19 collapse in traffic—that comprises less than 1% of all flights.

Of course, any flight that takes place almost empty is bad for the environment and bad for airline finances. But precisely for these reasons, airlines don’t operate ghost flights without cause. The analysis in the Guardian failed to explain that many of these flights were cargo flights, carrying vital supplies, including vaccines and personal protective equipment, during the pandemic. The cargo demand and humanitarian need justified the operation of certain flights, even with low passenger load factors.

Similarly, there were a number of repatriation flights, or flights where passenger numbers were deliberately restricted to comply with COVID regulations set by governments. Additionally, there are always some flights to move aircraft to maintenance facilities or, as was the case during the pandemic, fly a significant number into storage.

Flights to protect slots?

Were any of these flights simply slot blocking? The 80-20 ‘use-it-or-lose-it’ rule was obviously not designed to work during a 95% collapse in demand, and the slot rules were cited as a potential cause of some flights having to operate unnecessarily in Europe.

But this was not the case in the United Kingdom, where the slot rules were suspended. There was a risk that some unnecessary flights could happen in the EU because the European Commission was too quick to restore higher slot use rates. However, for the most part during the pandemic, the slot rules were just about flexible enough that ghost flights were not a major issue.

When asked, IATA Director General Willie Walsh was unequivocal: “I’m not aware of any airline company that I’ve worked with deliberately operating an empty flight simply to maintain a slot.”

The bigger picture

The ghost flights non-story has, however, raised important questions that need to be answered on slot allocation rules. The European Union is looking again at its Slot Regulation, with a consultation in place leading to a potential revision of the rules in 2023.

Although the revision is focusing on wider issues of competition, accessibility, and capacity, the role of slot rules in promoting greener flying is also in the mix. In addition to international efforts to reach net-zero carbon emissions, the European Union has instigated its own initiatives through the EU Green Deal.

Some politicians erroneously believe the slot system is creating ghost flights or that the slot process should be used as part of the Green Deal to prioritize the use of quieter or more fuel-efficient aircraft. Aviation is committed to exploring a multitude of options for reaching net-zero CO2, but airlines are united in their view that slot allocation decisions linked to the environment will not help the industry achieve its global sustainability objectives.

“The pandemic was an exceptional period and extrapolating lessons or making policy changes based on the industry’s activities during this time would be a huge category error,” says Lara Maughan, IATA’s Head of Worldwide Airport Slots. “Fiddling with the slot process to try to promote greener flying sounds positive in theory, but in practice it would make the slot process even more complicated while having minimal environmental gain. Trying to micro-manage slots may even have a detrimental environmental impact.”

Part of the reason for this is the globally coordinated nature of the slot system. Airlines operating between two slot-coordinated airports must be able to work to a harmonized system of rules to best match demand with their planned schedule. If one country’s rules insist on operating the slot with a certain aircraft (for example for environmental reasons), then the airline may have to prioritise a non-optimal plane for that route, regardless of volume of demand—for example a narrowbody plane over a widebody. This will affect consumer access and choice, and potentially impact another route that would have benefitted from that aircraft choice.

Any attempt to micro-manage the process at a handful of global, slot-constrained airports will only displace aircraft elsewhere, making no overall improvement to emissions and negatively affecting the benefits of aviation connectivity for travelers and the economy.

More flexibility, not less

By far the best way to ensure that slots are used as efficiently as possible is to give airlines more flexibility, not less. This is particularly true during periods of crisis or demand shocks. Coordinators should be able to react with alternative and more flexible approaches. The value of the Worldwide Airport Slot Board’s recommendations for managing slots during COVID was recognised by regulators and adopted worldwide by many governments. The answer in Europe is for the revision of the slot process to align more closely with the Worldwide Airport Slot Guidelines and to increase the resilience of the system.

Prior to the pandemic, the slot system was delivering ever-more efficient use of capacity, while increasing consumer choice and ensuring reliable schedules. Far from ghost flights being an issue, the overall efficiency of air transport was improving year on year, with global passenger load factors reaching an all-time high of 83% (85% in Europe) in 2019. Moreover, after the pandemic lows, load factors have quickly rebounded, with Europe reaching 85% again in September 2022.

In terms of sustainability, the best way to tackle industry emissions is at source—from the engine. That is why the industry is focused on reducing CO2 through sustainable aviation fuels (SAF), radical new zero-emissions technologies, and reducing distance flown through more efficient air traffic management. Other out-of-sector solutions to reduce emissions, such as offsetting and carbon capture, are also important.

It is the industry’s hope and expectation that European politicians will focus on delivering the Single European Sky, which would generate up to 10% emissions savings, and promoting the Fit for 55 legislation to increase production of SAF.

“Regulators should ensure that the slot system sticks to what it does best—maximizing efficient use of scarce airport capacity and giving consumers and airlines the best balance of reliability and choice,” concludes Maughan. “Trying to use the slot system to deliver a theoretical marginal emissions gain threatens to upend the traditional purpose of the slots system and cause more harm than good.”

Source: Airlines

Dubai could get a 93-kilometer indoor cycling super highway

Dubai could become a new center for sustainability and wellness, if developer URB gets its way. The Dubai-based firm has proposed a series of ambitious, environmentally focused designs to transform the emirate – including an indoor climate controlled “sustainable urban highway” stretching over 93 kilometers (58 miles).

If built, “The Loop” would be the “smartest” cycling and running infrastructure anywhere in the world, according to URB’s CEO Baharash Bagherian. “The project aims to make Dubai the most connected city on Earth by foot or bike,” he added.

The massive structure is designed to wrap around Dubai, providing a car-free “green corridor” filled with trees and plants for residents to walk or cycle around the city.

URB has also devised a huge agritourism project for Dubai’s desert which it says could become a new benchmark for sustainable agriculture, environmental education and green tourism in the region, if it were built.

Separate from The Loop, the “Agri Hub” would cover roughly 40 hectares and host spaces for education and research, as well as eco-lodges, farm shops, and farm-to-table restaurants and cafes.

Bagherian says that a visit to the Agri Hub would help guests to understand and engage more in sustainable practices. “It will open people’s minds,” he says. “People may misunderstand agritourism. They think it’s looking at farm equipment, looking at farms, and going to pick fruit. With this project we’re trying to disrupt the agritourism model, so it benefits everyone. Whether you’re a retailer, whether you’re a farmer, especially if you’re the consumer – there’s something of a greener economy for everyone.”

“Moving towards a greener economy”

Bagherian has previously led the designs for Phase 2 of “The Sustainable City” in Dubai and worked on similar green communities currently under construction in Yiti, Oman, and Yas Island in Abu Dhabi.

“The whole world is moving towards a greener economy,” says Bagherian. “The strongest economies are going to be the ones who are able to transition towards sustainability at the earliest possible opportunity with projects like this.”

The Agri Hub’s snakelike structure would be formed of a huge steel canopy and paneled with pre-cast concrete, with the carbon cost offset by the operations of the site.

URB says the project aims to be zero-waste and on-site transport will be fossil-fuel-free. It would have its own biogas plant to generate energy from organic waste, while parts of the development would be partially underground, to keep buildings cool.

As fresh water is scarce in Dubai, the project is designed to feature bio-saline farming, where crops are grown in salty water, and use recycled gray water from the site to irrigate the public areas. These areas will feature drought-tolerant plants as well as rain gardens and bioretention areas that require no irrigation and create habitat for birds and insects.

Like The Loop, the Agri Hub is designed to use 100% recycled water for irrigation, and be entirely powered using kinetic energy.

URB says the projects will be funded by private investors and that it is currently undertaking feasibility studies to establish the best site for the development of the Agri Hub. Bagherian hopes construction of the Agri Hub will begin in 2024. The Loop, if commissioned, could be ready for Dubai’s cyclists and runners by 2040.

Source: CNN Travel