Africa must redefine its tourism as it sets post-Covid recovery strategy

The Covid-19 pandemic has disrupted our societies and economies and continues to reshape the world with the emergence of new variants. The crisis has tipped the scales for the tourism sector in the region, which pre-pandemic, contributed significantly to the bloc’s economic growth.

In 2019, the sector contributed an average of 8.1 per cent to the gross domestic product of East African Community (EAC) partner states and brought about an average increase of 17.2 per cent to total exports.

Tourism plays a catalytic role in the broader economy through direct revenues for airlines, travel agents, hotels, shops, restaurants, and other tourist facilities. It also contributes to indirect economic impact through induced spending in agricultural produce, manufactured goods, transportation, entertainment and handicraft.

Travel restrictions to curb the pandemic saw EAC partner states lose 92 per cent of revenues in tourism. Arrivals dropped from approximately 7 million in 2019 to 2.25 million in 2020 (Sixth EAC Development Strategy).

With Omicron, the latest variant of the coronavirus, prompting fresh border closures, it is about time we started to interrogate the effectiveness of travel restrictions by weighing their disruptive social-economic impact. This seems timely as recent studies suggest that reducing community transmission rates could be more effective in containing the spread of the virus than border closures.

Coordinated response

To trigger travel demand and keep global borders open, we must ensure equitable access to vaccines, coordinate international travel procedures, and embrace technology to authenticate test and vaccination certificates.

Like the rest of the world, the resumption of travel and tourism in Africa will depend largely on a coordinated response among countries regarding travel restrictions, harmonised safety and hygiene protocols, and effective communication to help restore consumer confidence.

We must, however, appreciate that the current global health concerns and barriers to travel may take time to wane. As such, the continent must self-reflect, and promote domestic and intra-continental tourism for a more sustainable recovery.

Africa needs to address critical tourism competitiveness drivers, to foster intra-continental tourism. Top on our agenda should be visa openness.

The Africa Visa Openness Report 2020 findings show that African citizens still need visas to travel to 46 per cent of other African countries, while only 28 per cent can get visas on arrival. These restrictive and cumbersome visa requirements diminish tourists’ motivation to travel and indirectly reduce the availability of critical services. The continent should prioritise ongoing efforts to enhance its visa openness.

Another critical pillar to address is the liberalisation of African skies to improve intra-continental connectivity. Try flying from any East African capital to northern Africa, and you will quickly discover how poorly connected we are as a continent.

A trip that should take no more than five-and-a-half hours in some cases takes an estimated 12 to 25 hours, as one has to take connecting flights via Europe or the Middle East! A direct flight would probably cost an estimated $600; however, you will be lucky to get a flight for less than $850.

The African Union has taken steps to make open skies a reality through the Single African Air Transport Market (SAATM) created to expedite the full implementation of the Yamoussoukro Decision. Once operationalised, greater African connectivity will reduce air travel time and costs, catalysing intra-continental trade and tourism growth.

Early warning

The current Covid-19 crisis and past disease outbreaks have demonstrated Africa’s preparedness to manage pandemics. Early warning systems and continuous investments in public health have seen the continent handle infectious outbreaks relatively better. However, though well-intended, the requirements for testing before departure, confirmatory testing on arrival, and in some cases quarantine, are both costly and inconvenient, hence deterring travel, particularly for leisure purposes.

The African Union-backed PanaBIOS has been critical in disseminating Covid-19 test results on a secure digital platform accessible to all member states. The EAC has also developed an EACPass that integrates and validates EAC partner states’ Covid-19 tests and vaccination certificates to ease entry across the region. Once fully rolled out, the EACPass will be integrated with other regional and continental digital health platforms to enhance transparency and guarantee the authenticity of certificates.

The continent could benefit from investing in targeted and effective tourism promotion campaigns for the African market. The EAC’s recently launched “Tembea Nyumbani” campaign is a key step towards catalysing intra-regional tourism. A similar approach across all regional economic communities could fundamentally transform the continent’s tourism and reduce our reliance on international arrivals, as has happened in Europe over the years, where intra-regional tourists account for 80 per cent of total tourism arrivals.

Finally, allow me to quote an African proverb: “Until the lion learns how to write, every story will glorify the hunter.” For years, international media has created negative perceptions and representations about Africa. Scenes of civil wars, hunger, corruption, greed, diseases, and poverty have defined us. Perhaps it is time to start interrogating our role in their narratives, but even more importantly, define Africa ourselves.

Source: The East African

How Does The IATA Travel Pass Work?

As the aviation industry restarts after over a year of passenger downturn, the IATA Travel Pass is becoming a crucial initiative in this next chapter. Airlines across the globe have been introducing the mobile app to help travelers store and manage their details during the pandemic, but how does the tool actually work?

A new climate

Governments worldwide have implemented a series of stringent travel restrictions since the rise of the global health crisis last year. The conditions grounded fleets and forced millions to stay where they are, effectively preventing them from seeing their loved ones or traveling for work for months on end.

These restrictions have been slowly relaxing. However, there are still several requirements in place to ensure that passengers move safely amid the current situation. With borders opening up, the spread of the virus needs to be controlled. Therefore, requirements such as testing and vaccinations have to be met in order to fly.

Meeting requirements

To help with the recording of this information, the International Air Transport Association (IATA) introduced its Travel Pass. Airlines initially began testing the app for loading COVID test details and related information. However, trials began expanding the utilization to include vaccination records. Following successful testing, governments have been gaining the confidence to accept the app’s usage for all their passengers.

Notably, recently, IATA announced that it integrated the acceptance of digital vaccine certifications issued by the European Union and the United Kingdom into the app. Therefore, it is now smoother for travelers to prove their vaccination status when flying.

Overall, the platform is an effective way to prove test results and vaccination status than paper processes. Authorities can verify documentation authenticity and the identity of individuals with the pass. Ultimately, travelers benefit by having their core post-COVID travel details in one place.

The core features

There are four primary modules to the IATA Travel Pass:

  1. Registry of health requirements -This segment allows travelers to find information on travel, testing, and vaccine requirements.
  2. Registry of testing and vaccination centers – Here, passengers can locate centers and labs at their departure and/or arrival locations.
  3. Lab app – The feature allows authorized test centers or labs to securely send vaccination certificates or test results to travelers.
  4. Travel Pass app – The app gives passengers the opportunity to:
  5. Create a “digital passport.”
  6. Verify their vaccination and/or test.
  7. Share their vaccination or test result through integration into passenger management systems.

Importantly, Travel Pass does not store any data centrally. It solely links entities that require verification with the test or vaccination data when passengers allow it. Altogether, the airline customer has to give the go-ahead to verify. If the traveler opts to do so, the data is sent from their mobile device directly to an airline or government.

The right support

To enhance the digital health pass, IATA is working closely with Raytheon Technologies subsidiary Collins Aerospace. The company is using its wide-ranging presence in the aviation industry to help make integration with Travel Pass streamlined.

As a leader in high-integrity solutions, Collins Aerospace highlights that by using a carrier’s host systems connections to seamlessly send passenger itinerary data to the Travel Pass app. Using the firm’s TransAction Service, this process enables itineraries to be matched against destination conditions and coronavirus health results to determine if a passenger is “OK to travel.” Crucially, the same connections can then be used to update the carrier’s host system with that status.

With this managed service, the ongoing support and maintenance of the integrations are covered by Collins Aerospace. So, the connection process can continue to be relied upon as the challenges of the aviation industry continue to evolve.

IATA notes that Collins’ tool assists operators to catalyze the app’s adoption amid the ease of integration. Ultimately, while the world continues to navigate the impact of the pandemic, additional support from the likes of Collins will go a long way.

“More than half of the world’s borders have some kind of travel restriction in place, but we see the deployment of vaccinations and testing measures as positive steps toward restoring international airline travel,” shares Jennifer Schopfer, president of Connected Aviation Solutions. “With the use of Collins Aerospace’s technology, Travel Pass will enable the secure flow of information to ensure that passengers know the health requirements for their journey, and for airlines to confirm those requirements have been met.”

Looking ahead

Over 60 carriers have registered to use IATA’s Travel Pass. More and more people are returning to the air as borders slowly open in numerous key regions. For air travel to keep going in the right direction, carriers and the broader market need to show that the new governmental conditions can be handled effectively. So, the Travel Pass will hold a vital position in the next stage and beyond.

Airlines and passengers alike would dread another dark age of travel as we saw over the last one and a half years. Altogether, initiatives such as the IATA Travel Pass will prove valuable in the mission to continue safe and efficient operations.

Source: Simple Flying

The future looks bright: updating Africa’s ageing airline fleets

Africa has the oldest aircraft fleet in the world. Despite Africans representing more than 17% of the world’s population, their aircraft fleets amount to roughly 6% of global commercial passenger and cargo aircraft in 2020, the African Airlines Association (AFFRA) data indicates. This means that Africa has the lowest level of aircraft per capita of any other region in the world.  

For the past two decades, the average age of global aircraft fleets has varied between 10 and 12 years. In comparison, the average fleet age across Africa stands at around 17 years, the oldest of any world region.  

For instance, according to Planespotters.com data, South African Airways, South Africa’s flag carrier, operates a fleet of 14 jets with an average age of 15.4 years. Meanwhile, Nigerian carrier Arik Air has a fleet of 18 jets, with an average service age of 14 years. 

Similarly aged fleets are also operated by the national airline of Tunisia, Tunisair (14 years in service on average) and Air Algerie (13.9 years on average).  

Even the Moroccan national carrier, Royal Air Maroc, one of the largest African airlines by aircraft size, which joined the Oneworld alliance in 2020, flies 59 passenger aircraft that have already spent 13 years in operation.  

However, not all major carriers in the region operate such aging fleets. For example, Kenya Airways, a primary competitor airline of Royal Air Maroc, flies 39 aircraft, which have already spent a decade on average in passenger operations. Meanwhile, Egyptair, another large African carrier and the operator of 68 passenger jets, boasts an even younger fleet where the average age of a jet is just over seven years.  

Even the leading African airline operates a relatively old fleet. Ethiopian Airlines, Africa’s largest carrier, operates almost twice as many aircraft as Egyptair. The data shows that the Ethiopian government-owned company flies 130 jets that have completed almost eight years of service.  

Elderly planes usually have a longer list of former owners. For example, an 18.2-year-old Ethiopian Airlines Boeing 737-700 jet, registered as ET-AVO, was previously owned by Aeromexico and Sun Country Airlines before it was passed to the hands of its current owner.  

Another Boeing 737-700 aircraft, the EI-GVW, which is currently owned by Arik Air, has been in operation for 11 years. Initially delivered to KLM Royal Dutch Airlines in 2011, the jet was re-registered and handed over to Mongolian carrier Eznis Airways in August 2011. But a month later it was leased by African airline Arik Air.  

South African Airways is another example of an African carrier that successfully uses older planes for commercial passenger services. The company’s Airbus A340-300 jet, the ZS-SXG, is more than 21 years old and was primarily used to serve Spanish carrier Iberia’s flights between 2001 and 2010. In March 2010, the aircraft, which was initially registered as EC-HQF, received a new registration number, F-WJKF, and was transferred to Airbus Financial Services before it joined South African Airways.  

What will African aircraft fleets look like in the future? 

While the region’s leading airlines operate much older planes, some experts have noted that there is a more promising outlook for the future.  

American plane manufacturer Boeing states that the global commercial fleet in 2021 was composed of 25,900 aircraft. In the Boeing Commercial Market Outlook, a long-term forecast of commercial air traffic and aircraft demand, the company forecasts that the global fleet will consist of around 49,405 jets by 2040. The majority, reportedly 43,610 planes, will be newly delivered aircraft that will expand the existing airlines’ fleets or will become replacements for older jets.  

Boeing estimates that the aviation market in Africa will see a demand for 1,030 new planes valued at around US $160 billion. Such a demand for the emerging African market will be driven by the anticipated 3% annual economic growth over the upcoming two decades, Boeing analysts say. They add that this should result in the need for more than 63,000 new aviation staff by 2040, including 19,000 pilots, 24,000 cabin crew, and 20,000 technicians. 

The continent expects 740 new deliveries of narrow-body jets as well as 250 wide-body aircraft over the next 20 years, meaning that fleets across the African region are expected to grow by around 3.6%.  

It is also expected that 80% of African aircraft deliveries will serve fleet growth with more sustainable aircraft such as the Boeing 737, Boeing 777X, and Boeing 787 Dreamliner. Meanwhile, the remaining 20%, will serve as a replacement for older commercial planes.  

Source: Aerotime Hub

Holiday bookings take off as pre-departure Covid tests scrapped

Airlines have seen bookings soar after Boris Johnson announced the pre-departure Covid test rule for travellers heading to England was being scrapped.

The change – which was coming into force at 4am on Friday – has handed a major boost to the beleaguered travel industry.

The Prime Minister also announced the requirement for flyers to self-isolate on arrival until they receive a negative PCR test is being dropped.

On Thursday, Jet2holidays and Jet2.com reported a massive surge in bookings since the PM’s statement on Wednesday.

Customers behind a 150 per cent daily spike are said to be planning trips to Spain, the Canaries, the Balearic Islands, Turkey and Greece.

Virgin Atlantic said searches were up 150 per cent week on week, peaking at 8pm on Wednesday, a few hours after Mr Johnson addressed the Commons.

The most popular destinations departing from the UK were Orlando, New York and Barbados, it said.

British Airways said visits to its 2022 holidays website increased by nearly 40 per cent with New York, Dubai and Barbados the most searched.

Steve Heapy, CEO of Jet2.com and Jet2holidays said: “The relaxation of travel restrictions is welcome news for both the travel industry and holidaymakers and comes during what is traditionally a very busy period for holiday bookings.

“We have seen an immediate and dramatic spike in bookings, with volumes since the government announcement heading towards pre-pandemic levels, which demonstrates just how much demand is out there amongst people wanting to get away for a much-needed holiday.

“We were already heading into the New Year with a strong feeling of positivity and confidence, and the removal of these restrictions really gets 2022 off to a great start.”

A Virgin Atlantic spokesman added: “It’s also important to note that most people were searching for inbound travel to the UK – highlighting we’re open for business and tourists once again.”

In his statement to MPs on Wednesday, the Prime Minister said the Omicron variant is now so prevalent in the country that pre-departure tests are having limited impact on the spread of the disease.

Instead, the rules will revert to the system in place in October, with travellers required to take a lateral flow test no later than the end of day two after their arrival.

The measures were originally introduced following the identification of the fast-spreading Omicron variant in South Africa last November.

The announcement – which covers those passengers who are fully vaccinated or are under the age of 18 – has been broadly welcomed by the travel industry, which has been particularly hard-hit by the pandemic.

EasyJet chief executive Johan Lundgren said: “This will make travel much simpler and easier and means our customers can book and travel with confidence.

“However, the Government must now urgently take the final step towards restriction-free travel and remove the last remaining unnecessary test for vaccinated travellers so flying does not become the preserve of the rich.”

A spokesman for Heathrow Airport said: “Although this is welcome news, there is still a long way back for aviation which remains the lifeblood of the UK’s economy, supporting millions of jobs in all four nations.”

NHS lateral flow tests cannot be used for international travel, and the tests must be brought from a private provider.

While those who have already brought PCR tests for travelling needs can still use these.

Source: Evening Standard

Fake Covid tests behind Dubai Kenya flight ban

The aviation regulator has revealed that Dubai banned all inbound and transit passenger flights from Kenya because travellers from Nairobi were testing positive for Covid-19 after arrival in the Middle East nation, despite carrying negative test results.

The Kenya Civil Aviation Authority (KCAA) director-general Gilbert Kibe told the Business Daily Wednesday that the scheme involved a racket of corrupt officials from Ministry of Health who colluded with travellers to issue fake Covid-19 PCR results to aid travel to Dubai.

The Ministry of Health has however launched a probe on the matter with a view to bring to book health officials who were involved in the shoddy deal that has cost Kenya millions of shillings in lost passenger revenues.

“They banned flights from Kenya due to many false negative Covid-19 PCR results,” said Mr Kibe Wednesday.

“Ministry of Health is investigating and will report findings soon. Several other African countries were red listed as well.”

Mr Kibe said that Dubai had no option but to ban passenger flights from Kenya because in a single day they could detect up to 20 “false negative Covid tests.”

The situation, he said, went out of hand the moment health officials in the Middle East nation detected up to 73 cases of Covid-19 negative tests that were fake.

He said that a thorough probe on issuance of the fake Covid-19 clearance documents is underway by the Ministry of Health and that all culprits will be brought to book. “Yes, culprits shall be apprehended after investigations,” said Mr Kibe.

The Dubai Civil Aviation Authority (DCAA) announced a 48-hour suspension on all flights from Kenya to the Middle East nation on December 20, 2021.

On December 29, 2021, Emirates Airline said it had, in turn, extended its suspension of flights from Kenya to comply with the directive that was to end on December 24 until further notice. However, the Kenyan suspension did not affect cargo freights and passenger flights from Dubai to Nairobi.

The extension of suspension of all inbound and transit passenger flights from Kenya came barely a few days after Kenya Airways (KQ) suspended passenger flights to Dubai following the flights ban by the Middle East country amid a surge in Covid-19 cases in Kenya.

The national carrier said it would refund passengers who had booked for travel within the suspension period. The travellers will also be allowed to rebook when flights resume, said KQ.

The temporary suspension of operations came barely a few days after Dubai introduced new travel requirements for those coming on direct flights from Nigeria, Kenya, Rwanda and Ethiopia.

Under the new measures, travellers from Africa to Dubai were required to provide a report on a rapid PCR test conducted at the departure airport six hours before leaving for Dubai. It is in addition to a negative Covid-19 test certificate issued within 48 hours of arrival in Dubai. Passengers, including those on transit, under the new measures, will undergo a PCR test upon arrival in Dubai and self-quarantine until a negative test result is out. Applying to both passengers terminating their journey and those transiting through Dubai, the rules are expected to affect Africans, most of whom prefer Dubai as a transit point due to its interconnectivity and the lower fares charged by Emirates Airlines.

The report comes at a time Kenya has recorded a sharp increase in cases of Covid-19 infections in recent months, while the number of admissions in health facilities is also increasing.

Positivity rate — the proportion of positive tests — climbed sharply by a double-digit from last month, raising concerns among health officials.

It increased from a low of 0.5 percent in October to 22.6 percent as at January 4 as the government stepped up testing and vaccination. By January 4, Kenya had vaccinated 10.13 million people, 4.22 million fully, up from 746,267 on August 14 while the number of those who have received the first jab has jumped to 5.87 million from two million over the same period.

Source: Business Daily

COVID-19: UAE announces travel ban on unvaccinated citizens from Jan 10

Unvaccinated Emirati citizens will not be allowed to travel outside the UAE from January 10, 2022, the Emirates News Agency (WAM) reported.

The new decision has been taken by the Ministry of Foreign Affairs and International Cooperation in coordination with the National Emergency Crisis and Disasters Management Authority (NCEMA).

The move comes after to the rapid increase in global COVID-19 infections and to maintain the health and safety of the UAE people.

The ministry stressed that vaccinated citizens will have to take the booster dose in order to be able to travel.

However, those excluded from the vaccination due to medical reasons and humanitarian cases and those seeking treatment abroad will be exempted.

Source: Gulf News

2022 travel trends: Airline miles to lose value, negotiable hotel rates, more

The travel industry has faced new restrictions, canceled trips, destination closures and job losses over the past year. What can we expect in 2022?

CBS News senior travel adviser Peter Greenberg shares his expectations and how travelers should prepare.

Flight prices will drop in January

After January 4, air traffic historically drops, so prices will likely be lower than they are now, Greenberg said.  

“If I wanted to book a round-trip ticket this morning from New York to Los Angeles, assuming I could even get on a plane, that round-trip fare is $700. January 5: $132,” he said Tuesday on “CBS Mornings.” “I also priced out a Dallas to New York trip on January 5. It was $32. The cab ride to the airport is more expensive.”

Airlines won’t mandate vaccines on their own

While some airline CEOs support a vaccine mandate for travelers, none of them want to be the only airline to implement it, Greenberg said.

“They’re waiting for the Biden administration to make that rule,” he said. “[The administration’s] not about to make that rule right now because their other vaccination mandate is being challenged in the courts, all the way up to the Supreme Court. So, until that’s resolved, it’s dead on arrival.”

Airline miles will lose value

During the pandemic, companies realized their frequent flyer programs were worth more than the airlines themselves, Greenberg said.

“They actually mortgaged their programs from between $6 and $10 billion each airline. That’s a lot of debt,” he said. 

To deal with that debt, the airlines will start to devalue frequent flyer miles and make it harder to earn and redeem them, he said. So, if you have a lot of miles, Greenberg recommends using them as soon as possible.

“Start today. Look out about 330 days, as far out as that, and redeem miles as much as you can because starting in January, that devaluation parade is going to start and it’s not going to be pretty,” he said.

Hotel rates could be negotiable 

Expect to pay more for hotels in the next year. But if you’re willing to make a phone call, rather than book online, you may be able to negotiate the rate, Greenberg said. 

“It’s not the posted rate that counts, it’s all the ancillary rates about whether you’re going to have to pay for the water, or the Wi-Fi, or the parking,” he said, adding, “as more hotels open with the same continuing staff shortages, it’s going to be a much more competitive marketplace. They’ll be much more willing to negotiate because any revenue is better than no revenue.”

Restaurants will raise prices

“Expect to pay more for your menu,” Greenberg said. “Every menu item price is going up, and a lot of things that never used to be on the menu as a charged item — they’re going to be on that.”

This is because many restaurants have been facing staffing issues that are expected to continue. They’ll have to incentivize workers with higher wages, perks and benefits, Greenberg said.

“That’s going to all translate into higher menu prices, not just on the entrees, but what used to come on your dish is now going to be charged as a side order. Even the bread basket is going to be a paid item.”

Source: CBS News

2022 Outlook For Travel Insurance Buyers

Just when travel restrictions were finally easing up and travelers began rejoicing, Omicron crashed the party. News of the Covid variant prompted border closures, new travel warnings and quarantines, indicating that the pandemic will continue to change the way we travel for some time to come.

Fortunately, many of the changes we can expect to see in the travel insurance industry this year—and beyond—are aimed at easing pandemic travel woes.

Since the pandemic started, travelers have been buying more protection for trip cancellations, and the industry is addressing coverage for Covid-related issues and moving toward more flexibility and transparency.

Many travelers are eager to book voyages for 2022, and they’re adding insurance to their plans. Travel insurance sales increased 53% in the days right after news of the Omicron variant, according to Squaremouth, a travel insurance comparison provider.

Here are some of the travel insurance trends you can expect to see in 2022.

Trip Cancellation Insurance Will Continue to Gain Steam

Trip cancellation insurance reimburses you for prepaid, non-refundable deposits if you cancel for a reason that’s listed in your policy, such as an illness or family emergency.

Trip cancellation insurance has always been a popular component of travel insurance. It has been part of 80% to 90% of travel insurance policies, according to Squaremouth.

As the pandemic continues to affect travel, this trend shows no sign of slowing down. Sales of travel insurance plans with trip cancellation coverage increased 255% year-over-year, says Squaremouth.

“Cancel for Any Reason” Coverage Will Maintain Momentum

“Cancel for any reason” (CFAR) insurance is an upgrade available for some policies that expands your ability to make a trip cancellation claim. If you have CFAR coverage, you can cancel for any reason not listed in the base policy and still get some reimbursement for your lost deposits—often 75%.

CFAR is a superior coverage to have during uncertain travel times because it can apply to situations that aren’t typically covered by a base travel insurance policy. For example, you could make a CFAR claim because of a border closure or because you don’t like your destination’s Covid testing or quarantine requirements.

“Cancel for any reason” coverage-built momentum during the pandemic and remains popular among travelers. Sales of this coverage spiked 147% from 2020 and 2021, according to Squaremouth.

Covid Coverage Will Become More Common

With a couple years of the pandemic under their belts, many travel insurance companies are now including Covid-related coverage as part of standard travel medical insurance and trip cancellation benefits.

“The majority of providers do now cover Covid under travel medical expenses and cancellation, looking at it like any other illness in most cases,” says Megan Moncrief, spokesperson for Squaremouth.

Travel medical insurance pays for the costs of an ambulance, medical treatment, medicine and more if you become ill or injured during your trip. There is a wide variety of coverage levels available, with some policies providing up to $500,000 in medical coverage per person.

If Covid coverage is important to you, make sure to verify that your policy includes it under trip cancellation and medical benefits.

Trip Delay Benefits Becoming Priority

While trip cancellation remains a top concern among travelers, trip delay benefits are poised to gain in popularity as concerns mount over new variants and quarantines, says Moncrief.

“With variants coming into play, concern about contracting the virus and being forced into quarantine while on a trip is now starting to take the lead over concerns about canceling,” says Moncrief. “We expect in 2022 that interest in trip delay coverage will increase.”

Travel delay insurance can compensate you for meals, an extended hotel stay and other extra costs if you have to quarantine while on your trip, under certain conditions: You must test positive for Covid and you must have a plan that covers Covid-related expenses. Benefits can generally be extended for seven days beyond your return date if you’re forced to quarantine at your destination longer than planned.

Travel insurance generally does not pay out if you don’t have Covid but have to do a mandatory quarantine somewhere.

More Travel Insurance Policy Flexibility

Some travel insurance companies will now accommodate customer requests for changes to trip dates on policies. This allows you to postpone the trip—and your travel insurance coverage—without canceling and rebuying the insurance.

Additionally, Moncrief says, many travel insurance companies are still willing to waive penalties for canceled or changed trips, so you may be able to recoup trip expenses that would have been lost otherwise.

More Benefit Options on Deck

To better meet the needs of travelers during the pandemic, travel insurance companies are bolstering certain benefits, which is likely to continue.

For example, some countries require that visitors have a certain minimum amount of travel insurance coverage. Costa Rica, one of the most popular destinations over the past year, mandates that unvaccinated visitors have $50,000 in medical expense insurance and $2,000 in trip delay benefits to pay for quarantine-related lodging.

Many of the travel insurance companies that didn’t offer these amounts of coverage revised their plans to match the required limits, says Moncrief.

“I anticipate we’ll continue to see that type of response in 2022 as long as these types of mandates are in place,” she says. “We may even see trip delay benefits be extended from seven to 10 days after a policy end date.”

Benefits for Emerging Pandemic-Related Issues

As new pandemic travel concerns crop up, the travel insurance industry appears to be responding.

For instance, some insurers are considering adding coverage for border closures and travel warnings in the wake of Omicron, says Moncrief, although it will take time to get approval in each state and work out the pricing details.

“It’s like terrorism. No policy had [terrorism coverage] before 9/11 and now it’s specifically listed and covered in most cancellation policies,” she says.

Trips Abroad Are Popular Despite New Entry Rules

It’s becoming “normal” for travelers to have to show some combination of proof of vaccination and a negative test result or proof or recovery from Covid when entering other countries and then upon returning to the U.S.

In January 2021, The Centers for Disease Control issued a new rule requiring all international air passengers arriving in the U.S. to get tested for Covid no more than three days before their departure. (It’s recently been changed to one day before.) You must show a negative result, or proof that you recovered from Covid in the past 90 days, before boarding.

Despite the pandemic and various country-entry requirements, more than 80% of bookings in 2021 were for international destinations, according to Squaremouth.

European destinations, however, are not nearing the popularity they had pre-pandemic, says Moncrief. “Even with the borders opening, I think people are still in the ‘wait-and-see’ mode,” she says. “And the Caribbean and Mexico are still more popular than they were before the pandemic.”

Younger Travelers Lead the Pack

Senior travelers are still sticking close to home, as younger travelers brave Covid travel turbulence.

Before the pandemic, most travel insurance was purchased by people over age 50. That’s changing. Now many travel insurance policies are bought by people under age 50, according to Squaremouth.

“Older people still aren’t comfortable with the potential risk of traveling right now, and younger people are more inclined to go,” says Moncrief. “We expect the trend of younger people, millennial, Generation X and baby boomers all comprising similar market share to continue in 2022.”

Beyond 2022: Policy Language to be Clarified

Some travel insurance companies are likely to begin revising the language in their policies to better reflect the new reality of living—and traveling—in a pandemic world.

A policy may have certain travel insurance benefits that are applicable to Covid, such as travel medical insurance, while others are not. But it’s not always spelled out.

Travel insurance companies have added information around Covid-related issues on their websites to bridge the information gap.

Adding explicit language to policies for Covid-related issues will take some time because state insurance departments must approve changes, but Moncrief believes insurers in 2022 will make progress in clarifying the terms of what is and isn’t covered.

Source: Forbes

‘People miss travel’: IATA bullish on Asia travel rebound in 2022

Asia will reopen to travel as more is learned about the Omicron variant, with the recent tightening of borders only a “temporary speed bump” on the road to recovery, according to a top airline industry representative.

In an exclusive interview, Philip Goh, regional head of the International Air Transport Association, told Al Jazeera he was optimistic about the resumption of travel in Asia in 2022 despite the region’s doubling down on travel restrictions in response to the variant.

“People miss travel and they want to travel. You cannot substitute a hug, a handshake with a virtual zoom call,” Goh said. “Nor can videos capture and invigorate the senses stimulated by the sights, sounds and scents of the places we travel to.”

Goh, IATA vice president for Asia-Pacific, said governments in the region that had banked on isolation to control COVID-19 more than any other part of the world would ultimately reopen because “their citizens want to travel and are asking for it”.

“They also understand the need for economies dependent on global commerce and trade to re-establish trade lanes and to allow connectivity to again flourish,” Goh said.

“This is a temporary set-back,” added Goh, who attributed Asia’s strict border policies to the “risk adverse nature of the region and memories of the SARS pandemic in 2003”.

“We are optimistic that plans to restart international travel will resume when more is learnt about Omicron.”

Japan, South Korea, Singapore, Malaysia, Indonesia and Thailand have reintroduced tough travel curbs in response to Omicron, while mainland China, Hong Kong and New Zealand have doubled down on existing ultra-strict border controls.

The region’s deepening isolation comes as countries such as the United States, Australia and Canada ease testing and isolation rules amid growing acknowledgement that efforts to tightly control the spread of the highly transmissible Omicron strain have become too disruptive to everyday life.

Although Omicron is believed to be two to three times more transmissible than the Delta variant, the coronavirus strain has been associated with milder illness.

In a study published in The Lancet on Wednesday, South African researchers found that just 4.9 percent of cases during the most recent wave in the province of Gauteng were hospitalised, compared with 18.9 percent during the second wave. The study, which has not been peer-reviewed, also found that patients were 73 percent less likely to have severe disease than those admitted during the country’s third wave, which was dominated by the Delta variant.

On Thursday, the South African government announced that its Omicron wave had peaked with no significant uptick in deaths. In the UK, where the daily number of COVID-19 cases is still breaking records, the number of patients in ventilation beds is less than one-quarter of their peak in January.

Even before the variant’s arrival, the Asia-Pacific had yet to see any meaningful rebound in travel. Air traffic in the region was down 92.8 percent in October compared with October 2019, according to IATA data. By comparison, travel in North America and Europe was down just 57 percent and 50.6 percent, respectively, in the same period.

‘Desire to travel’

While credited with reducing deaths from COVID-19, the region’s isolation has decimated travel-reliant industries such as tourism, separated families, upended plans for study, work and migration, and disrupted supply chains.

Earlier this month, IATA Director General Willie Walsh criticised governments that introduced travel bans in response to Omicron for “putting at risk the global connectivity it has taken so long to rebuild”.

In November, the IATA released a blueprint for restarting international travel that called on authorities to adopt “simple, consistent, and predictable” measures. The proposals included removing all hurdles for vaccinated travellers and allowing quarantine-free travel for passengers who are not vaccinated but have a negative antigen test result.

Goh said the effective shutdown of the region’s aviation had highlighted the “immense importance of aviation in our lives, which is often taken for granted”.

“People have missed not being able to connect with friends and family. People feel worse-off in terms of life experiences gained through exploring new cultures or obtaining an overseas education,” he said. “The fact that travel bookings surged whenever border reopening is announced reveal the desire to travel.”

Goh said there was a need for more balanced discussion about the costs of fighting COVID-19.

“That’s why we need governments to look at reopening borders, allowing the free flow of air travel without quarantine by treating COVID-19 as an endemic disease and managing it through testing and vaccination,” he said.

Source: AL JAZEERA

Is consolidation the answer to unlocking African aviation?

Shifts towards new market policies, airline behavior, operations models and governance are clearly pointing towards a consolidated African aviation sector. Accelerated by the onset of the pandemic, what were once loose discussions around the formation of mutual pan-African airline ties are now taking shape.

While conversation centered on establishing a single African airline or airline group have been taking place for some time, it’s only now that action is being seen and new partnerships are leading the way. The Yamoussoukro Decision, a document dating back to November 1999, was set in motion to liberalize African air services, which have operated under multilateral agreements set on a country-by-country basis. 

This has limited free movement of trade goods and air services across the continent. The implementation of policies such as the Single African Air Transport market (SAATM) and the African Continental Free Trade Area (AfCFTA), pick up where former efforts left off. This liberalization has alleviated restrictions on airspace, lessened tariffs and red tape, and potentially led to an increase in passenger volumes. 

Today, industry and airline executives agree that airline partnerships and mutual cooperation are prerequisites for emerging from the pandemic downturn with a stronger and better-connected African market that competes on an international level.

The African sector has responded with an increased urgency to augment infrastructure and personnel training. This also includes expanding the continent’s regional connectivity by adapting and modernizing its fleets to allow passengers wider access to more destinations through regional airports. 

A key motivator in this focus on regional operations is the projected population growth rate on the continent. Over the past 30 years, the African population has doubled, reaching 1.2 billion in 2015 compared to 550 million in 1985. By 2050, the population is expected to double again on the back of a growing middle class and projections of 26 African countries doubling their current population. 

Improved regulations are expected to enable greater air service efficiencies for the continent’s short to medium–haul fleets, which include regional aircraft types from manufacturers such as such as the Bombardier (Dash 8, CRJ900), Embraer (ERJ 145,190, E2), Boeing (737) and Airbus (A320). 

An efficient intra-African route network is within reach for the African market and consolidation seems to be tied to the narrative of unlocking air travel in the sector.

Regional partnerships taking form

At the 51st Annual General Assembly, which was held virtually in late October 2021, airline executives pushed forward the idea of unionizing resources and capacities as a solution to combat the sector’s fragmentation, stagnant regulations and excessive fuel costs. Alongside a fragmented airspace, other agitators of the continent’s fuel costs include minimal aviation fuel production/manufacturing on the continent, and an inadequate road network and road infrastructure. This poses a challenge to the efficiency of fuel deliveries, which are operated by trucks that utilize regional road networks. 

Price competition on the continent is also a concern as airlines group to unionize the sector. However, the sector’s leaders suggest that the benefits would far outweigh the risks.

Thomas Kgokolo, the CEO of South African Airways, believes that airline subsidies may hold more benefits over capital injections, as the sector addresses low connectivity on the continent.

“Resource pooling could, therefore, help to stimulate the market, but of course one has to be careful of competition boundaries,” stated Kgokolo during a panel discussion at the AGA. 

In the industry, there is an emphasis on reforming African carriers’ approaches in order to stimulate recovery in the market and step away from working in isolated bubbles.

Kgokolo added: “The post-pandemic recovery in Africa in terms of air traffic requires bold decisions. Our biggest challenge [in the region] is that we are now much more fragmented due to the impact of the pandemic and working in silos.” 

During the latter part of 2021, we have seen airlines position themselves to increase their operational capabilities and move to what seems to be economies of scale. 

Unfolding in the form of non-exclusive partnerships, this could give airlines significant negotiating power and operational capabilities.

Today, South African Airways (SAA) and Kenya Airlines (KQ) have forged a partnership that will bring forward a pan-African airline in 2023 after signing a Memorandum of Cooperation (MoC) in November 2021. A partnership of this scale gives both airlines the benefits of increased finances and the operational expertise.

In the year 2020, KQ lost $333 million dollars, while SAA lost $341 million dollars. Despite the losses, both carriers are in the midst of a major restructuring. According to reports from the International Monetary Fund (IMF), the Kenyan government will withdraw its interest in nationalizing KQ and guarantee $750 million to pay off the carrier’s debts as part of the restructuring, which is expected to cost up to $1 billion. Similarly, as part of the restructuring of SAA, the South African government committed to provide $729 million in state aid to the country’s flag carrier to help it pay off its debts.

The partnership between the airlines increases stability and positions the carriers to further connect passenger volumes between East and Southern Africa and broaden the destination choices available to their passengers at competitive prices.

And the benefits do not stop at passenger flights. The partnership will also enhance trade on the continent.

With the AfCFTA in place, goods, trade and freight operations across the continent can be redefined to a global standard. Cargo volumes for African carriers are at about 26.7% above October, 2019 levels, according to IATA. An active cargo player, like Kenya Airways, widens and diversifies its operations across the continent with the backing of this partnership. 

The airline has also shown an intent to widen its export destinations in central Africa by enhancing its regional operations in the Democratic Republic of Congo (DRC) following a Memorandum of Understanding (MoU) signed with Congo Airways in April 2021. 

Similar partnerships between airlines have also been drawn up, aimed at connecting destinations across the continent. However, some airlines have turned to international partnerships to bridge the competition gap.

Partnering with international players

The sector dynamics in central Africa are an interesting angle to explore. While we’ve seen a number of collaborations between South and central African airlines, there are some African carriers who are joining forces with international players.

The realization of partnerships between African and international airlines is also gaining momentum as the sector consolidates. These African carriers are set to gain access to expertise, resources and an understanding about how to better position their business by tapping into the global networks and traffic of international players. In return, African carriers can offer greater connectivity options for global airlines looking to broaden operations on the continent.

The RwandAir and Qatar Airways partnership is a prime example of a mutually beneficial alliance between an African and international airline. Over the past two years, Qatar Airways has been focused on an expansion plan that involves broadening its footprint on the African continent. In December 2019, the middle eastern airline secured a 60% stake in Bugesera International Airport, a new airport under construction in Rwanda’s capital Kigali. In February 2020, Qatar also confirmed its partnership with Kigali-based RwandAir after acquiring a 49% stake in the airline. Together, the airlines boast a network that covers more than 160 destinations, which are served through their main hubs in Doha and Kigali. After signing a codeshare agreement in October 2021, passengers on both airlines can connect to more than 65 destinations across Africa and globally.

The alliance between RwandAir and Qatar brings a new dynamic to the traffic flows in central and east Africa, which have been dominated by Addis Ababa-based Ethiopian Airlines, Nairobi-based Kenya Airways and Gulf carrier Emirates Airlines.

Qatar Airways gains a new channel to feed passengers to its own hub in Doha and to Kigali, while increasing its presence in Africa. RwandAir gains both a new partner and a well-established hub in the center of Africa, rivalling that of Ethiopian Airlines in Addis Ababa. 

Similarly, carriers in Northern Africa have shown interest in establishing ties with neighboring international airlines. As of October 2021, Royal Air Moroc and El Al have established a codeshare agreement to connect traffic from both of the carriers’ hubs. 

A partnership between Bahrain-based Gulf Air and Cairo-based Egyptair is planned in North Africa. In November 2021, the airlines revealed their interest in combining resources and cooperation for cargo, maintenance, personnel training and the airlines’ frequent flyer programs after signing a letter of intent to explore cooperation between the two carriers.  

During the peak of the COVID-19 pandemic, Cairo International Airport retained the most passenger traffic of any African airport, serving over 7 million passengers annually in 2020, down from 15 million pre-pandemic. This retained traffic is greater than the number recorded by former leading airports such as O.R Tambo International Airport and Bole International Airport. As part of a $1.1 billion dollar Airport Modernization Program, Bahrain International Airport opened a new terminal, which increases the airport’s capacity to 14 million passengers annually. The combined passenger traffic of Cairo and Bahrain looks like a promising incentive for a future partnership with Gulf Air and Egyptair.

However, a well-known regional airline is redefining its image on the continent by breaking away from its former identity as an affiliate of SAA. Established almost 30 years ago, South African airline Airlink has operated on a business model that fed inbound passenger traffic in South Africa to smaller hub airports as well as some larger airports. A partnership with South African Airways was established in 1995 and Airlink became somewhat of an affiliate feeder airline to SAA. Airlink’s ambition to expand will redefine its brand, not as a siloed entity, but rather as an airline open to multiple global partnerships. 

Airlink has garnered a number of codeshare partnerships and interline agreements with the likes of Emirates, Ethiopian Airlines, British Airways, KLM, Qatar Airways, Virgin Atlantic, Air France, Delta, United, Lufthansa Airlines, LAM Mozambique Airlines and TAAG Angola Airlines. 

The airline’s former network pales in comparison to the hundreds of destinations and potential passenger traffic it will serve with its newfound partnerships as it emerges from the pandemic.

Is it too late or is this now the right time to consolidate?

To answer this question, we need to take a look at the environment the pandemic has created. 

Despite the downturn in traffic and enormous global losses, the pandemic has initiated a wave of restructuring and revision of airline governance across the majority of African airlines.

A number of African airlines are state-owned or partially state-owned, and have been subject to government influence. Even before the pandemic, bailouts were a common practice for airlines due to ill-management. However, while bailouts were necessary during the pandemic, they were only a temporary solution for most airlines. As a result, they were forced to rethink their operations models. Today, the sector is more welcoming to private investors and ownership in order to help rebuild and run their airlines, as seen with private entity Takatso Consortium and South African Airways.

So, how do we gauge the probability of success for the consolidation of state-owned, or partially state-owned, airlines in Africa? Well, a good starting point is Ethiopian Airlines.

The Addis Ababa-based airline has long led the standard for aviation on the continent, turning profits for a majority of the company’s existence. The airline’s ambition has been to establish plans for multiple hubs across the continent under its Vision 2025 multiple hub strategy. To achieve this, its growth plan has been focused on collaborating with African carriers to expand operations and connectivity on the continent, while sharing resources, expertise and capacity.

EA shares a number of ventures with airlines on the continent through ownership of equity stakes. Today, its airline network combines to serve South, South-East, Central and West and East Africa. 

In West Africa, EA holds a 40% stake in ASKY Airlines. Its 49% stake in Malawi Airlines and in Tchadia Airlines further boosts its Central and East African operations. This includes a 99% ownership of Ethiopian Mozambique Airlines and stakes in the national carriers of Guinea and the Democratic Republic of Congo. 

Ethiopian Airlines has also partnered with African governments to launch national carriers across the continent. Zambia Airways launched on December 1, 2021, with the backing of a joint venture between Ethiopian Airlines and the Industrial Development Corporation Limited (IDC), a government-owned financial institution based in South Africa. Both parties hold a 45% and 55 percent% stake in the airline respectively, and provide access to about $30 million in capital. 

Air Congo is another carrier set to launch in the Democratic Republic of the Congo (DRC) alongside existing national carrier, Congo Airways. A joint venture between the DRC’s Ministry of Transport, which holds 51% of Air Congo’s shares, and Ethiopian Airlines, which holds a 49% stake, will see the airline take to the skies in December 2021. The MoU signed between the parties will see Ethiopian Airlines share resources in the form of fleet capacity of a minimum of seven aircraft.

A majority of the Ethiopian Airlines’ stakes and ventures were established during the past five to 10 years, with the most recent occurring in the past two years. A key element in these ventures is the sharing of resources, capacity and expertise from EA to its partners. And with a fleet of more than 130 aircraft at its disposal, the reality of bringing forth a number of efficient aviation hubs across the continent is drawing closer.

Several factors control the success of a consolidated African market. Some of these aspects include liberalized skies and regulations and being open to private investment, including investment into infrastructure development, fleet modernization and personnel training. It will also require airlines to gain a greater understanding about how to better position their companies, and to no longer operate as extensions of a government with political motives.

Source: AeroTime Hub