Boeing has accepted responsibility in US federal court for the March 2019 crash of an Ethiopian Airlines Boeing 737 Max 8, and has agreed to compensate families of survivors.

The company’s attorneys have signed a “stipulation” in which the airframer admits fault and agrees that numerous related lawsuits against it should move to the process of determining damages.

The crash of Ethiopian flight 302 killed 157 people. Families of victims filed numerous lawsuits against Boeing in US Federal Court for the Northern District of Illinois, accusing the company of negligence.

“Boeing Company admits that it accepts responsibility for the crash of Flight ET 302, which caused the deaths of all onboard the Boeing 737 Max,” says the stipulation, filed with court on 10 November. “Boeing does not blame nor allege that any other person or entity was responsible.”

All but two of the numerous families that sued Boeing over the Ethiopian crash agreed to the terms of the stipulation. Lawyers have asked the judge to approve the document.

The stipulation also specifies that Boeing “will not argue, in any individual trial for compensatory damages, that any other person or entity” was liable for the crash. It also will not “ascribe fault to” the captain or first officer.

Boeing did not respond to a request for comment.

Investigators have said Ethiopian flight 302 crashed after a faulty angle-of-attack indicator caused the jet’s Maneuvering Characteristics Augmentation System to send it into a dive from which the pilots could not recover.

In the agreement filed 10 November, Boeing agrees the suit should move to determining monetary damages.

A jury, in deciding the amount of compensation Boeing should pay, will be instructed that “Boeing… has admitted that it produced an airplane that had an unsafe condition that was the proximate cause of” the crash of flight 302, the stipulation says.

That language marks a sharp contrast from statements made by Boeing shortly after the Ethiopian accident, which came several months after the crash of a Lion Air Max 8 in October 2018. Investigators likewise pinned faulty MCAS activation as a prime factor causing the Lion Air accident, which killed 189 people.

At a press conference in April 2019, Boeing’s former chief executive Dennis Muilenburg defended the design of MCAS and stressed that pilots can follow procedures to counter errant MCAS activation.

Source: Flight Global

Dubai’s hotel industry reported its highest monthly room rates since 2018, lifted by the opening of Expo 2020, according to STR.

Hotel occupancy rates in October stood at nearly 82 per cent, with the average daily rate (ADR) at Dh776. Revenue per available room (RevPAR) – a performance metric used in the industry – during the month was Dh633.66.

“The market’s absolute ADR and RevPAR levels were the highest for any month since January 2018 and February 2018, respectively, while the occupancy level was the highest since January 2020,” said STR in a statement.

The Expo, which is expected to bring in 25 million visitors during a 6-month long period, has already reported around 3 million visits since opening up to the public on October 1.

Return of Europe

Travelers are once again flying to Dubai from major markets in Europe due to the lifting of COVID-19 restrictions.

“I’m not sure how many people are coming just for the Expo, but they’re coming and the Expo is a nice add on to have,” said Simon Allison, CEO of Hoftel, a global association for hotel real-estate investors.

“If you look at that market, a lot of people didn’t have a summer holiday this year – right now, if you’re in Europe and you want some sunshine, it’s the Canary Islands or it’s GCC,” said Allison.

Managing costs

During the pandemic, Dubai’s hotels became experts at managing costs as they had to rely solely on the domestic staycation market.

“It got to the point where hotels in this region could break even at 20-30 per cent occupancy and now they have cut the staffing model significantly,” said Allison. “There’s a risk of staff shortage and for hotel operators there’s the risk of escalating costs, with managers raising staffing levels back to where they were in 2019”

Business travel

The return of events and conferences in UAE shows that business travel is back in small pockets. The Dubai Air Show – this year’s largest aviation and aerospace event – along with Abu Dhabi’s flagship oil conference ADIPEC will be held next week and thousands of participants are expected to visit.

Hoftel, which is organizing this year’s Gulf and Indian Ocean Hotel Investors’ Summit, will not see participants flying in from several countries, partly due to cuts in corporate travel budgets.

“Normally, we’ll have people from Singapore, Australia, Kenya, and Uganda – we’re not getting those,” said Allison.

The hotel industry veteran added that large conventions, which can’t be replaced with virtual calls, will return much faster. “People are actually desperate to meet face-to-face in bigger formats,” said Allison.

“What will suffer permanently is the small internal corporate meetings that require employees to take short flights to meet their colleagues” said Allison. “That’s a chunk of the meeting market that will never come back.”

Source: Gulf News

Ethiopian Airlines is establishing its presence in more than six African countries through a management role or strategic partnership with the local carriers, making it a dominant player in the continent.

The move is set to give East African carriers such as Kenya Airways (KQ) a run for their money.

KQ will particularly feel the pinch as increased competition will likely make it harder for the carrier, which is in a deep financial mess, to fly back to profit territory, not to mention its goal of reclaiming its lost glory as the “Pride of Africa”.

Next month, the Ethiopian carrier is expected to launch Air Congo, the latest in the string of airlines where it is acquiring stakes as African countries move to revive their ailing national carriers.

Ethiopian Airlines will operate both the medium and long-haul fleet in DRC, which will comprise De Havilland Canada Dash 8-400s, Boeing 737s and two 787s.

The Addis-based carrier is also involved in starting a new airline in Zambia, which is expected to be up and running next month. Ethiopia will hold a 49 percent stake while Zambia will have a controlling stake of 51 percent.

“We just signed an agreement with the government of DRC, which owns 51 percent of the airline and 49 percent is with us,” said Tewolde GebreMariam, the airline’s chief executive officer in an interview with an aviation online magazine.

Ethiopian Airlines also plans to restart operations of the Mozambique carrier after terminating the services in May on the back of Covid-19 that impacted negatively the aviation sector.

Ethiopian Airlines has strategic partnerships with ASKY in Togo, Malawian Airlines and Chad-based Tchadia Airlines. It also has a management contract with Ceiba Intercontinental in Equatorial Guinea.

Ethiopian Airlines, which is also keen on setting up an airline in Nigeria, had started talks to help in the revival of South Africa Airways but was not selected by the carrier.

However, the airline signed an interline agreement with Johannesburg-based Airlink. Ethiopian Airlines says that its contract with Airlink will allow passengers seamless travel on a single ticket on any of the two carrier’s networks.

DRC, which has for years been underserved by airlines, has recently recorded an increase in the number of carriers that have launched flights on the route.

For instance, budget carrier Jambojet recently introduced flights to Goma to capitalise on high demand for air travel between Kenya and DRC. Last month, RwandAir also introduced flights to Congo, highlighting the high interest that carriers have on that route.

The Jambojet inaugural flight to Goma was on September 10, starting with two frequencies weekly. This is set to grow to four weekly, flying on Monday, Wednesday, Friday and Sunday.

DRC market is currently served by the national carrier Congo Airways, which flies to eight domestic destinations, including Goma, Kinshasa and Lubumbashi.

Lubumbashi is the second-largest city and mining capital in DR Congo. It is also rich in fertile soil for agriculture which calls for many investors.

MoU

Kenya Airways in April signed a Memorandum of Understanding with Congo Airways to collaborate, strengthen, and bolster aviation ties between Kenya and The Democratic Republic of Congo.

The signing of the cooperation was witnessed by President Uhuru Kenyatta and his Congolese counterpart Félix Tshisekedi during Mr Kenyatta’s three-day State visit to DR Congo.

Kenya, just like many other countries, is looking to leverage on the DRC market by diversifying its export destinations, particularly when the Covid-19 induced disruption has brought into focus the need for deeper inter-regional trade.

The airline is taking advantage of the huge opportunity the African market has to offer, and the rising demand for air connectivity in the region.

Source: The East African

Starting Monday, the U.S. is accepting fully vaccinated travelers at airports and land borders, doing away with a COVID-19 restriction that dates back to the Trump administration. The new rules allow air travel from previously restricted countries as long as the traveler has proof of vaccination and a negative COVID-19 test. Land travel from Mexico and Canada will require proof of vaccination but no test.

Airlines are expecting more travelers from Europe and elsewhere. Data from travel and analytics firm Cirium showed airlines are increasing flights between the United Kingdom and the U.S. by 21% this month over last month.

The change will have a profound effect on the borders with Mexico and Canada, where traveling back and forth was a way of life until the pandemic hit and the U.S. shut down nonessential travel.

Malls, restaurants and Main Street shops in U.S. border towns have been devastated by the lack of visitors from Mexico. On the boundary with Canada, cross-border hockey rivalries were community traditions until being upended by the pandemic. Churches that had members on both sides of the border are hoping to welcome parishioners they haven’t seen during COVID-19 shutdown.

Loved ones have missed holidays, birthdays and funerals while nonessential air travel was barred, and they are now eager to reconnect.

River Robinson’s American partner wasn’t able to be in Canada for the birth of their baby boy 17 months ago because of pandemic-related border closures. She was thrilled to hear the U.S. is reopening its land crossings to vaccinated travelers.

“I’m planning to take my baby down for the American Thanksgiving,” said Robinson, who lives in St. Thomas, Ontario. “If all goes smoothly at the border I’ll plan on taking him down as much as I can. Is crazy to think he has a whole other side of the family he hasn’t even met yet.”

According to the Centers for Disease Control and Prevention, the U.S. will accept travelers who have been fully vaccinated with any of the vaccines approved for emergency use by the World Health Organization, not just those in use in the U.S. That means that the AstraZeneca vaccine, widely used in Canada, will be accepted.

For air travelers, the airlines are required to verify vaccine records and match them against ID, and if they don’t, they could face fines of up to nearly $35,000 per violation. Airlines will also collect information about passengers for contact tracing efforts. There will be CDC workers spot-checking travelers for compliance in the U.S. At land borders, Customs and Border Protection agents will check vaccine proof.

The moves come as the U.S. has seen its COVID-19 outlook improve dramatically in recent weeks since the summer delta surge that pushed hospitals to the brink in many locations.

Source: NPR

Africa witnessed the highest growth in international freight cargo volumes in September compared to any other region in the world as the airlines continue recovery from the impact of Covid-19.

Data from the International Air Transport Association (IATA) indicates that Africa recorded a 34.6 percent growth in the review period to mark a ninth consecutive increase on month to month.

The volumes, according to IATA, are 20 percent above the pre-crisis 2019 levels but have been trending sideways for the past six months.

“African airlines saw international cargo volumes increase by 34.6 percent in September, the largest increase of all regions for the ninth consecutive month,” said Willie Walsh, IATA’s Director General.

Total demand for air travel in September 2021 (measured in revenue passenger kilometres or RPKs) was down 53.4 percent compared to September 2019.

The agency says continuing border closures and quarantine mandates are impacting negatively on travel.

“The recent US policy change to reopen travel from 33 markets for fully vaccinated foreigners from 8 November is a welcome development,” IATA said.

“Along with recent re-openings in other key markets like Australia, Argentina, Thailand, and Singapore this should give a boost to the large-scale restoration of the freedom to travel.”

All the regions across the world saw their cargo volumes increase, an indicator that the aviation sector is now more dependent on cargo in the wake of dwindling number of passengers seeking air travel.

However, IATA notes that capacity for international operations remains constrained at 8.9 percent below pre-Covid-19 levels (September 2019) for international operations.

Supply chain disruptions and the resulting cargo delays led to long supplier delivery times. This typically means manufacturers use air transport, which is quicker, to recover time lost during the production process.

The September global Supplier Delivery Time Purchasing Managers Index (PMI) was at 36, with values below 50 being favourable for air cargo.

“The September new export orders component and manufacturing output component of the PMIs have deteriorated from levels in the previous month but remain in favourable territory. Manufacturing activity continued to expand at a global level but, there was contraction in emerging economies,” said the agency.

Asia-Pacific airlines saw their international air cargo volumes increase 4.5 percent in September 2021 compared to the same month in 2019.

“This was a slowdown in demand compared to the previous month’s 5.1 percent expansion. Demand is being affected by slowing manufacturing activity in China. International capacity is significantly constrained in the region, down 18.2 percent vs September 2019,” IATA said.

European carriers saw a 5.3 percent increase in international cargo volumes in September 2021 compared to the same month in 2019.

Middle Eastern carriers experienced a 17.6 percent rise in international cargo volumes in September 2021 when compared to September 2019, an improvement compared to the previous month. However, international capacity was down four percent compared to September 2019.

North American carriers posted a 19.3 percent increase in international cargo volumes in September 2021 compared to September 2019.

IATA says new export orders and demand for faster shipping times are underpinning North American performance.

International capacity was down four percent compared to September 2019, a slight improvement from the previous month. 

Source: The East African

National carrier Kenya Airways is recalling some of its former staff who were affected by restructuring last year meant to conserve cash in the wake of Covid-19 that disrupted business.

The re-hiring, which has been going on in the last two months, follows growing demand for air travel as passengers, especially on local destinations, that has seen competition among carriers increase.

Kenya Airways’ cut its workforce last year to survive the Covid-19 turbulence. It also resorted to a hiring freeze, and unpaid leaves to stabilise its operating costs.

An official at the airline said there has been a growing demand in the recent days and the carrier has added some frequencies to accommodate a rising number of passengers, hence need for increasing manpower.

“We have seen an increase in demand and that is why we are recalling some of our employees,” said an official from the airline.

Last month, KQ, as the airline is known by its international code, introduced a larger aircraft to Mombasa following high number of passengers on the route. The carrier upgraded the aircraft on the route to a Boeing 737-800 from an Embraer 190.

The airline has recently been upgrading its frequencies to match the rising number of passengers on both local and international route.

Diminishing revenue

Last week it increased the frequencies to the UK to two weekly after Britain removed Kenya from the red list of countries, which barred travellers from Kenya from going to the UK. The carrier also started flights to France after suspending the route a while back.

The airline lost 1,123 employees to close 2020 with 3,652, in a period when coronavirus-related air travel restrictions saw it record the highest loss in its history.

Half of the airline staff left through resignations or voluntary early retirements. The airline posted a Sh11.49 billion net loss in the six months ended June — a 19.8 per cent cut from the Sh14.33 billion loss it incurred in the preceding similar period, taking its accumulated losses over the years to above Sh127 billion.

Passenger revenue dropped by 17 per cent to Sh20.23 billion while cargo revenue went up 60 per cent due to increased focus on freight operations, especially Covid-19-related essentials like vaccines.

KQ says the long recovery prospects and diminishing revenue in an environment of increased costs due to tight health and safety measures mean it will require a bailout to stay afloat.

“The financial situation of the company is precarious,” said KQ chief executive Allan Kilavuka during investors briefing recently.

Source: Nation

If ever there was a sign that life is returning now to what was our normal, then some developments and milestones passed earlier this week will serve as very welcome portends. Yes, we must still be vigilant in keeping up our public health defences against coronavirus, but there is every reason to smile knowing that Dubai’s place on the global stage is approaching pre-pandemic status.

For all of us who live in the UAE and certainly for every international air traveller who has ever passed through Dubai International, the emirate and its facilities are closely associated with travel and the airline industry.

Indeed, before the pandemic hit, one third of Dubai’s Gross Domestic Product was linked to activities directly related to the aviation sector. Getting back to normal means getting that sector and everything related to it, back up and running – it is mission critical.

DXB is one of the world’s busiest airport in terms of passengers flying in and out. Covid-19 – and the pandemic essentially resulted in the virtual mothballing of the global airline industry for months. DXB is now back on its rightful perch as the world’s busiest airport with the release of the latest travel figures. Within days, the last remaining concourse at the airport will re-open – a very welcome and positive indication indeed that the airport is flying full capacity once more.

In the first month of Expo, more than 2.7 million have visited the mega exhibition, a sure driver in increasing passenger footfall at DXB. And with the UAE hosting the T20 World Cup, cricket fans too have added to the number of travellers passing through the airport. But the outlook is certainly positive, and that familiarity of a busy airport bodes very well.

Given that aviation accounted for one third of GDP in the emirate, the Dubai Air Show on the global calendar was always the key event on the global aviation calendar. It was an event where billions of dollars in deals were done as the industry and its related sectors gathered to see the latest innovations and aircraft.

The Air Show is back and set to be the largest in-person aerospace event this year. That’s a testament to Dubai’s response to the pandemic, as Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman of Emirates airline has rightly noted. Yes, there is wind beneath Dubai’s wings once more.

Source: Gulf News

Research by UK Buy Now Pay Later (BNPL) platform and the travel agent, Butter, reveals that global hotel prices are on the rise as demand surges after most travel restrictions are eased.

The global travel industry was severely wounded by the COVID-19 pandemic with airlines, hotels, and travel agents seeing their customer base evaporate overnight due to strict travel restrictions coming into force across much of the world. But through increased vaccination and a reduction in infections, governments around the world are keen to get their economies back up and running with tourism playing a central role. As such, many nations have eased most of their rules.

Consumers have, in kind, been more than happy to embrace these new freedoms and demand for hotel rooms across some of the most popular holiday destinations is now 184% higher than it was a year ago.

As a result, prices are also up 16% on the year with the average hotel room now costing GBP127 per night.

Nowhere have prices increased more than in New York, USA, where they’ve risen by 28% to an average price of GBP220 per night. This is a consequence of the demand for hotel rooms in The Big Apple increasing by 361%.

A 409% surge in demand for hotel rooms in Madrid, Spain, has forced prices to rise by 24% to an average of GBP123 per night, while prices in London have increased by 23% to GBP154 per night in reaction to a 220% surge in demand.

Rome, Italy, has also seen prices increase by 23% to GBP117 per night after a 193% increase in demand, while a hotel room in Lisbon, Portugal, now costs GBP110 per night has increased by 20% on the year alongside a 261% increase in demand.

Some global destinations have not seen such intense annual price rises. In Singapore, where demand is up 90% on the year, prices have increased by just 1% to an average of GBP116 per night, while in Cape Town, South Africa, prices are up 5% after a 140% demand increase means a hotel room now costs GBP81 per night. And Sydney, Australia, has only seen a 44% increase in demand, resulting in a small price increase of 7% to an average of GBP111 per night.

Timothy Davis, Co-Founder and CEO of Butter, commented: “It’s clear that those places where prices have increased the most have also eased most, if not all of their travel restrictions both in and out of the country. America, the UK, Spain, and Portugal have all told the world they’re open for business while Australia, South Africa, and Singapore have, among others, either taken a more cautious approach to reopening or have reinstated certain travel bans having previously relinquished them.

“The resulting price hike was inevitable as holidaymakers rushed to book and hotels looked to recoup income lost as a result of the pandemic. But despite these increases in both activity and price, there remain some great deals to be had for those who look hard enough for them.”

Source: Travel Daily

Kenya’s participation in the Expo 2020 Dubai is projected to add USD 1.5bn immediate value to the economy through business leads in investments, tourism, and exports, the Kenya Export Promotion, and Branding Agency (KEPROBA) CEO Wilfred Marube said.

In an interview with Capital Business, Marube said that Kenya is banking on the expo to diversity its export markets, identify opportunities and create connections with importers.

“We see the immediate benefits amounting to Sh 1.5 bn in terms of what we anticipate of wide-range investment and exports. We are looking for opportunities in tourism, sales, and exports, by participating in the Expo, Kenya will enhance its profile and image in the United Arab Emirates and the Middle East, while at the same time push the Kenya brand to the world and increase awareness of Kenya’s tourism, trade, and investment opportunities,” he said.

As part of the medium to a long-term plan, resources mobilized and commitments from government-to-government agreements are expected to leverage up to USD 1 billion from Gulf Cooperation Council (GCC) States Sovereign Wealth Funds.

More specifically, Kenya is eyeing the United Arab Emirates (UAE)/ GCC markets which Marube noted has ‘barely been scratched’ even as he reveals its huge potential owing to its high GDP, huge sovereign funds and it being a net importer.

Kenya is seeking to grow its exports to the GCC from USD 555 million in 2019 to USD 2.5 billion in 2022.

“The UAE and gulf council of country, for instance, is an area we want to get the maximum benefit of export, they are net importers of foods and Kenya is a high producer of agriculture products,” he said.

In addition, he said Kenya will leverage the expo to project itself as a hub for direct foreign investments through various fora including one on housing and infrastructure where Kenya will meet potential investors and showcase investment opportunities across these sectors.

The expo, Marube said has a budget of 330 million shillings which has been channeled towards marketing, publicity, showcasing the products, and facilitating logistics.

Kenya is among the 192 countries which confirmed attendance at the expo and has set aside a Pavillion measuring 400 sq meters that has so far attracted 50,000 people with a projection of at least 2,000-3,000 visitors daily.

Marube said the government projects to have at least 7.5 million visitors by March 2022.

Describing the pavilion-themed feel the energy, the KEPROBA CEO noted that it reflects and summarises the Kenyan people, whom he described as hardworking and determined.

The pavilion showcases various products highlighting agriculture potential, innovation sector, (fintech, edu-tech, agri-tech), cultural diversity, energy, tourism, and manufacturing sectors.

Thirty-four MSMEs have already benefitted from a program whereby their products ranging from cultural artifacts, tea, coffee were freely shipped to the expo for showcasing.

In order to facilitate more business people to attend the expo, the agency has secured a position at the global village (outside the expo) dubbed Kenya house where enterprises can showcase their products and services at a subsidized fee.

“I want to encourage Kenyan businesses to participate in the expo through these avenues, we also have a website whereby those that cannot be able to ship their products, can get the opportunity to exhibit their products,” he added.

Source: Capital Business

After a challenging 18 months post the Covid pandemic, it looks like the African aviation industry may be looking at spreading its wings again and is set to revive itself and remerge stronger through mutual cooperation.

Taking a leaf out of the African Continental Free Trade Area (AfCFTA) and SAATM or the Single African Air Transport Market in place, both of which are aimed at the liberalization of air transport in Africa and economic growth, Africa’s air carriers are now looking at forging mutually beneficial ties to boost intra-Africa air connectivity.

Intra-African air connectivity has remained a challenge for the region and developing a pan African network is becoming more imperative by the day, in a bid to connect more areas of the continent and to boost trade and economic activity and lift people out of poverty. This and more such topics were under discussion on Wednesday (October 13) at the popular CAPA Live series hosted by a leading resource for global aviation news and research – CAPA Centre for Aviation.

While speaking about mutual cooperation, recovery paths for the sector post the pandemic and how partnerships will yield increasing benefits to the region in the future- Allan Kilavuka who is the Group MD and CEO of Kenya Airways told Richard Maslen, director of Maslen Aviation Consultancy, “South African Airways is a very strong brand and so are we. And we believe that by being apart we tend to fragment the market a lot more, but by being together and by cooperating, we consolidate the market. There is the benefit of the customers to begin with and the benefit of two airlines and the economy in Africa as well. So we have signed the Memorandum of Cooperation with South African Airways to see what we can do quickly. But the long-term objective of this partnership is to form a pan-African airline that should be able to compete with other large carriers as well.”

Kilavuka added in the conversation that this was perhaps the beginning of the many such partnerships for co-creating a strong pan African airline network. Incidentally, this development is also key for South African Airways, which has recently resumed flights after it had announced bankruptcy in December 2019 after slashing hundreds of jobs and reports of widespread corruption amounting to at least $30 million having been misappropriated, leading to grounding its operations in March last year.

He further added, “So the cooperation that we have or this partnership that we have started up with South African Airways is the first of many. We had an earlier partnership with Congo Airways, which is in Central Africa; very similar, but with a slightly different objective. And the partnership with Congo Airways is to mutually support each other because Congo Airways has a lot of domestic markets and they don’t necessarily have the equipment. So we are trying to help them in that regard and support them in terms of giving them equipment and to support them in fulfilling their local demands. And then mutually cooperate so that we can connect the Central to the East, and also Central to the West and then Central to the South. So that is with Congo Airways. With South African Airways, we want to see how we can cover the African continent very effectively.”

Kilavuka’s statements become important in light of the fact both the African Continental Free Trade Area (AfCFTA) and SAATM or the Single African Air Transport Market have already been put in place to garner the liberalization of air transport in Africa and economic growth for the continent.

Under the AfCFTA, trade facilitation measures are slated to cut red tape, reduce tariffs and simplify customs procedures which are then expected to drive around $450 billion in income gains by 2035 and connect 1.3 billion people across 55 countries and power deep economic reforms and growth for African nations.

Meanwhile, the SAATM launched in January 2018, is the first flagship project of the African Union aimed at creating a single unified air transport market for air transport in Africa. It is slated to be a step in the direction of full liberalization of intra-African air transport services in terms of market access, free exercise of the first, second, third, fourth and fifth freedom traffic rights for passengers and freight air services by eligible airlines.

Source: Logistic Update Africa