Aero-Manufacturers Urged to Leverage African Market

Africa is considered the next big buyer of airplanes in the few years to come, yet there are no plane manufacturing companies operating on the continent.

Also, with the increasing number of planes on the continent, Africa continues to buy spare parts from outside the continent or fly planes across oceans to have them repaired.

Aviation experts and policy makers say, time has come for airplane manufacturers to open shop in Africa to ease the cost of running planes and also increase sales.

According to Patricia Uwase, the Minister of State in the Ministry of Infrastructure. “Africa has a lot of potential and one great untapped area is having aviation manufacturing industries on the continent.

A delegate during a tour of the exhibiton

“With the recent reports from International Air Transport Association (IATA) and the International Civil Aviation Organisation (ICAO) stating that Africa is the next largest continent to order aircraft, I see no reason why manufacturers are not setting up on the continent, hope many of you are going to choose to set up. We have all the right people to do that here and this should be the beginning of the discussions,” she added.

Uwase made the remarks on Tuesday while speaking at the 6th Aviation Africa Summit and Exhibition that kicked off on Monday, September 12 in Kigali.

The two-day summit that has brought together approximately 100 global aviation companies was concurrently hosted with the Salon Mondial des Infrastructures Equipments et Services Aéroportuaires (SMIESA).

Delegates follow the State Minister Uwase’s remarks during the 6th Aviation Africa Summit and Exhibition. Olivier Mugwiza

“Africa is truly meant to be on the map. We have enough traffic to support this growth. We have natural resources, but now we need to invest in human resources to drive the growth we need on our continent,” said Uwase.

She said that the proposed development in African aviation will not be completed without the Single African Air Transport Market (SAATM) which has not been implemented yet.

“We need commitment and action to implement it. we have the responsibility to give African citizens not only the opportunity to explore and access the continent but also to enjoy the economic benefits that come with it,” said the State Minister.

Africa integration

Just like several captains of the aviation industry, Uwase also believes that Africa’s integration is strongly hinged on the prosperity of the continent’s aviation industry.

“In the current global economy, being air linked is critical to social economic development and facilitates development in the air transport sector and critical to the prosperity and growth of African Continental Free Trade Area (AfCFTA),” she said.

Her views were equally echoed by Nigeria’s Minister for Aviation, Hadi Abubakar Sirika, saying that Africa’s interconnection mainly relies on aviation rather than any other means of transport.

“In accordance with African Union Agenda 2063 of integration, the only sure way of integrating Africa is by no other way than civil aviation. The quantum of wealth and the time it will take to put up railways and roads to connect and integrate Africa, it’s huge, the time and maintenance is out of our hands. It’s doable but very difficult. Also connecting by water is closely impossible since majority of the countries are landlocked, the only possible option is aviation,” he said.

He added that, “with 54 countries and 1.2 billion people, Africa is surely a powerhouse for the world of today and the world to come but we must be able to integrate if we want to leap to the next step.”

Manufacturers eye Africa

During the summit, several manufacturers spoke of their prospects to Africa and even mentioned the numbers of planes they will be selling to African airlines.

A delegate gets some information as he tours the exhibition.

“We are looking at making 1200 new deliveries of passenger planes in Africa in the next two decades. We also estimate to train about 12,000 pilots and 16,000 engineers in that same period. So, there is growth,” said Benoit Scourion, the Services Sales Director, Airbus Africa-Middle East.

He however pointed out that there is still a challenge of interconnection within Africa which may be a hindrance to the aviation growth on the continent.

“The continent is fragmented and there are discrepancies depending on where you are located which comes with different capacities and capabilities, yet with the growth, we need to reach to the entire aviation ecosystem in Africa,” said Scourion.

Airbus forecasts that air traffic in Africa will achieve full recovery to 2019 levels between late 2023 and beginning 2025. Globally, cargo is already operating today at 9% above pre-crisis levels, and in Africa 23%

Embraer, one of the largest commercial aircraft manufacturers has also built a great presence on the continent, with over 200 aircraft operating at over 60 airlines and plans to increase its supplies.

Participants of the two-day summit that has brought together over 100 global aviation companies, interact during a tour of the exhibition

At the sidelines of the summit, Embraer also showcased their latest release, the E195-E2, the quietest and most efficient single aisle aircraft flying, saving up to 25% carbon dioxide emissions compared to previous generation aircraft, can carry up to 146 passengers in single-class configuration and 124 passengers in a typical dual class configuration.

In a press briefing during the summit, Boeing’s Managing Director of Commercial Marketing for the Middle East and Africa, Randy Heisey, told journalists that the company has estimated that intra-regional and domestic networks across the African content would grow with a robust 6.1 per cent compound annual growth rate, driving 20-year demand for 1,010 new airplanes by 2040 and valued the demand for new airplanes by the continent’s carriers at $176 billion.

Heisey forecasted that the continent’s air traffic growth is expected at 5.2 per cent, the third highest among global regions.

Qatar Airways staff pose for a photo at the company’s stand in the exhibition.

The two-day summit that has brought together over 100 global aviation companies.

Source: New Times

African aviation sector nearly back to pre-Covid levels, except in Southern Africa

Africa’s aviation sector was recovering strongly from the effects of the Covid-19 pandemic, but Southern Africa was lagging significantly behind the continent’s other three IATA sub-regions (East Africa, North Africa and West Africa). This was pointed out by International Air Transport Association (IATA) regional VP: Africa and Middle East Kamil Alwadhi in his address to the recent Aviation Africa 2022 summit in Kigali, Rwanda. (IATA is the representative body for the global airline industry.)  

The African airline sector as a whole was “now” operating at 74.6% of its pre-Covid-19 levels, he noted. In July, its passenger traffic had amounted to 73.8% of that it had carried in July 2019 (during the last pre-Covid year). For summit host nation Rwanda, air passenger traffic in July this year was 106% of its level in July 2019.

With regard to air passenger capacity, as distinct from air passenger traffic, that in East Africa during July this year was 93.4% of its level in July 2019. He described this as a “robust recovery”. In North Africa, capacity was some 6.9% below the figure for 2019. And in West Africa, capacity was actually greater than in 2019, by more than 8.7%. These figures all indicated that air travel demand in these regions had returned.

“It is quite different in Southern Africa where traffic remains over 36.5% lower than before the pandemic,” he highlighted, “although the reduced capacity can be attributed to three airlines having gone out of business, one suspending its operations and what was the sub-region’s largest, shrinking its fleet, network and schedule by more than 80%.”

He called on Africa’s governments and industry to closely work together to promote a harmonised air transport agenda. Certain African governments had to stop blocking the repatriation of airline funds (as of the end of June, 12 African countries were blocking a total of $1.3-billion), as this hurt the airlines and endangered those countries’ air connectivity.

Airlines and tourism should not be treated as easy targets for taxes, levies and imposts, without some of the money being spent on upgrading and expanding national aviation infrastructures. The implementation of the African Continental Free Trade Area and the Single African Air Transport Market were the best means to achieve social and economic sustainability in Africa. And aviation safety was paramount; “[it] is our main priority,” he affirmed.

“Connectivity is precious,” stressed Alwadhi. “The crisis has demonstrated that everybody suffers when aviation stops. Covid-19 has dispelled the myth that flying only benefits the rich. A financially viable air transport sector supports jobs and must be a driving force for Africa’s economic recovery from Covid-19.”

Source: Engineering News

Nigeria To Fine Airlines That Don’t Sell Tickets In Local Currency

Foreign carriers operating to and from Nigeria are no longer allowed to sell tickets in currencies different from the local one, the Naira.

The Nigerian Civil Aviation Authority (NCAA) has announced airlines selling plane tickets in a currency different from the local one, the Naira, will be fined. Let’s look closely at why the country has made such a dramatic decision.

Nigeria’s shortage of foreign currency

Hadi Sirika, Nigeria’s Minister of Aviation, announced that foreign carriers can no longer sell plane tickets in a currency different from the Naira.

The decision stems from a shortage of foreign currency Nigeria is currently facing. Although the country’s primary source of export is oil, Nigeria has not managed to take advantage of the product’s current high price efficiently. The Nigerian Economic Summit Group (NESG) linked the country’s inability to exploit its natural resource to low production rates, pipeline thefts, and acts of vandalism.

Consequently, Nigeria is implementing harsh measures to prevent foreign currencies from pouring out of the country. For example, foreign currency funds of several airlines, for instance, deriving from selling tickets in US Dollars or Euros, have been frozen. Upon this decision, many carriers have canceled flights to Nigeria, including Emirates.

The international response

In front of Nigeria’s measures to prevent foreign currencies from flowing out of the country, the international response has been just as harsh.

Indeed, Nigeria was forced to unblock $265 million the country owed to foreign airlines. This sum represents 57% of the $464 million Nigeria withheld in July 2022. As a consequence, foreign carriers have progressively resumed flights to Nigeria. From their side, airlines must now commit themselves to selling tickets in Naira. Commenting on those airlines that refuse to do so, Nigeria’s Minister for Aviation stated:

“This is a violation of our local laws and will not be tolerated. Those airlines that will not abide by this measure will be punished.”

The Nigerian Aviation market

According to Minister Sirika, in 2016, $600 million of the total $1.1 billion generated by airlines in Nigeria belonged to foreign carriers.

Given the relevance of the Nigerian aviation market, the Minister underlined how important it is for the country to have a national carrier, which is expected to start operations in 2023. According to the Official Airline Guide (OAG), the airline operating the most frequencies to Nigeria in 2019 was Air Peace, based in the country’s capital, Lagos. Air Peace also ranked first in terms of capacity, with 2 billion seats offered to/from Nigeria in 2019, and the scenario is the same for 2022. Among the Gulf carriers, Qatar is particularly strong in Nigeria, ranking 6th in 2022 in terms of capacity, with 659,236 seats offered to/from the country. Regarding Europe, Lufthansa is the 9th carrier for capacity deployed to/from Nigeria, while Turkish Airlines places 10th.

In terms of traffic, the Nigerian market is predominantly domestic, with almost 3 million passengers estimated in 2022 and a market share of 74%. The busiest international origin is the UK, representing a market share of 4% and an estimated number of passengers of 146,628. The busiest connecting airport for Nigerian Origin & Destination (O&D) traffic is Nnamdi Azikiwe International Airport (ABV), serving the Nigerian city of Abuja, whereas Doha Hamad International Airport (DOH) is the busiest international connecting airport for traffic bound for Nigeria.

Source: Simple Flying

Boosting Africa’s commercial aviation sector, a sure route to recovery

To spot Africa’s path to post-pandemic economic recovery, look to the skies: no region has more to gain by making air travel and cargo movement easier, cheaper, safer and more competitive.

Through this avenue, African leaders have a tremendous opportunity to revive their economies and create jobs for their young populations, not least through the $6 of related economic activity for every $1 value commercial aviation makes.

Africa’s commercial aviation gap

Despite this potential, Africans, 17% of the world’s population, accounted for only 3% of air passenger figures in 2019 before the coronavirus outbreak. Last year, with global air travel at just 42% of 2019 levels, Africans were only 1.9% of air passengers.

Pre-pandemic, the passenger load factor and traffic for flights in Africa were the lowest in the world, reflecting both a lack of passenger confidence and affordability. Africa also ranks last regarding key “connectivity” indicators used by the International Air Transport Association (IATA) to measure the integration of countries within the global air transport network.

It shouldn’t be that way.

As a significant proportion of Africa’s road network is unpaved, air transport can uniquely connect cities and allow to flow between them key economic activity and people.

Challenges to overcome

In 2019, Africa had 352 commercial airports and 198 airlines, the Air Transport Action Group (ATAG) says. However, only 33 Africa-based carriers received Airlineratings.com safety ratings and only eight received the group’s highest rating.

Unfortunately, the pandemic isolated the African continent and weakened critical links between neighbouring countries. Businesses were cut off from key markets and consumers lost access to goods as soaring ocean freight rates prompted carriers to skip African port calls and divert ships to more profitable Asia-U.S. routes. As a result, African shipping tonnage fell 10% and countries such as Kenya lost direct connections to some foreign countries.

Even before the COVID-19 pandemic, there was broad recognition of the urgent need to pry open African air transport through sweeping deregulation. Thirty-four countries, accounting for 80% of the continent’s aviation activity, have signed up for the Single African Air Transport Market, a 2018 open-skies initiative of the African Union. SAATM aims to harmonize aviation standards, lower air tariffs, open Africa to more flights and foreign carriers and boost air cargo competition.

This initiative is a great start, which private sector actors must continue to support. Governments can no longer protect money-losing national carriers at the cost of discouraging competition and keeping ticket prices high and service quality low.

Air travel is too often seen as a privilege reserved for the wealthy and a source of tax revenue, not an economic multiplier to be expanded as a necessary public utility. Chronic under-investment means airport infrastructure is antiquated and fleets are comparatively old. Lengthy transit times and cumbersome visa requirements also add maddening delays and unpredictability to travel.

“Air travel is too often seen as a privilege reserved for the wealthy and a source of tax revenue, not an economic multiplier to be expanded as a necessary public utility.”

— Hassan El Houry, CEO, National Aviation Services

A development imperative

While commercial aviation’s economic footprint and impact are enormous, the sector’s growth-spurring potential in Africa is largely untapped. A study for ATAG found that commercial aviation contributed $63 billion to African GDP in 2019 – only about a third of what it added to GDP in Latin America and the Caribbean, a region with just 58% of Africa’s population.

In Europe, North America, Asia and, increasingly, the Middle East, the rise of low-cost carriers has boosted passenger traffic, flights, connections, carrier choices and cargo volumes. Competition has lowered ticket prices and democratized air travel. Investment in infrastructure, technology and staff training have produced tremendous gains in airport retail receipts, productivity, wages and government revenue.

All of these hold important lessons for Africa’s aviation sector.

Business travel in Africa appears to be recovering, however. The World Travel and Tourism Council (WTTC) says business travel spending was on pace to increase 36% in 2021 (the second-fastest growth rate after the Middle East at 49%) and it forecasts a 23% increase for Africa in 2022.

That boost in business travel is critical to the health of the industry because it represents a disproportionate share of spending and profits. Before the pandemic, business travellers made up around 12% of global travellers but accounted for a whopping 70% of revenue for high-end hotels and 55%-75% of airline profits, the WTTC says.

African governments and private sector actors in aviation must harness this momentum to make needed changes and accelerate the industry’s growth.

In addition to being a bridge to markets, investment, technology and talent, aviation is what will knit African economies together for mutual gain. For Africa to soar, it needs aviation.

Source: World Economic Forum

Rwanda regains control of upper airspace 5 decades later

Rwanda will now have full control over her upper aerial space, nearly five decades in the hands of the government of Tanzania.

A handover deed was signed last week by both governments after Rwanda notified of her intention to withdraw and directly discharge her responsibility of providing air traffic services in her upper airspace.

Silas Udahemuka, Director General of Rwanda Civil Aviation Authority (RCAA) and Tanzanian counterpart Hamza Johari, alongside Permanent Secretary at the Ministry of Infrastructure Fidèle Abimana as well as Barry Kashambo, Regional Director of ICAO Eastern and Southern African (ESAF), presided over the signing ceremony in Kigali.

According to RCAA, the country’s upper airspace was delegated to Tanzania in 1973 for provision of air traffic services.

However, officials said, to be able to regain her airspace, Rwanda fronted different reasons including improving safety in Kigali Flight Information Region (FIR) as well as meeting regulatory requirements such as Search and Rescue (SAR) obligations.

And following several coordination meetings led by The International Civil Aviation Organisation (ICAO), Rwanda was permitted to continue with the process to take over the airspace.

ICAO ordinarily gives the control of the upper airspace.

According to Serge Tuyihimbaze, an aviation expert based in Kigali, countries delegate provision of air traffic service for either technical, operational, safety or efficiency considerations.

Tuyihimbaze, who is also the Managing Director at Leapr Labs-a local drones company, argues that the opportunity in delineation of airspace lying across national boundaries could be targeting the proposed value alongside the previous aspects.

“But the opportunity cost in my opinion is around any barriers that may result in delegation of state sovereignty over airspace for provision of air traffic services,” he said.

“Of course having full control of your territory, being the airspace and ground, means a lot politically, looking at factors like independence, and others… And economically, if there was a big cost related to the provision of such services, the cost is saved! Or if real-time processing of Air Traffic data for future use is an option, this can have a good impact economically through Data Science innovations.”

For Alex Nwuba, a regional aviation analyst, countries may not wish to or cannot afford to offer navigation services over their upper airspace, in which case they delegate it over to another country or agency.

Much as Rwanda is restraining its upper space, Nwuba said, it is still a participant in the East Africa Community Unified Flight Information Region (UFIR) that creates a single block of upper airspace over Tanzania, Kenya, Uganda, Burundi and Rwanda, operating from a single area control centre under the regional open skies agreement.

“Thus it negates any opportunity cost. In Europe, this control is by Eurocontrol and AESCHNA with the francophone African nations who share the benefits.”

Nwuba shared similar sentiments with Tuyihimbaze, citing that the economic gains include collection of overflight fees while security makes a big part of the security gains.

Matthias Twahirwa, a pilot who spoke to The New Times, explained that up until recently, all aircraft flying over Rwanda above 24500 ft. didn’t need the country’s permission, but they needed permission from Dar es salam.

This was also particularly the same case for Rwanda which could not launch any object in space without Tanzania’s permission.

“Imagine if we started launching weather balloons, satellites now that we have the space agency. All that would be easy, since we would have our space back. It’s like having land but not owning the rights to use it however you want.”

On the economic front, some countries can make up to $1 million a day from airspace usage, according to Twahirwa.

Besides the handover ceremony, Johari accompanied by Tanzanian delegation, also visited Kigali International Airport and held a meeting with Rwandan aviation stakeholders including the management of Rwanda Airports Company and RCAA.

Both sides, officials said, shared experiences and best practices in regulatory services.

Source: The New Times

A guide to understanding medical repatriation on commercial flights

Medical repatriation

The aviation industry doesn’t just provide employment, economic growth, and rapid connectivity across the world, it also plays an essential role in transporting food to remote locations, conducting search and rescue operations, and is even involved in rapid medical repatriation.   

While serious medical emergencies typically require an air ambulance or helicopter, medical repatriation can also take place on a commercial flight.  

But just how easy it is to transport a patient via a scheduled flight? What are the logistical issues? And what are the positives? AeroTime investigates.  

Medical repatriation on scheduled flights – commonplace or a rare occurrence? 

There are many reasons why people need air medical services, including commercial airline repatriation. While severely injured or ill patients are typically taken care of by a private air ambulance, helicopters or executive jets, medical repatriation on a commercial flight can be a viable alternative depending on the patient’s medical state and the flight route.  

Medical repatriation on commercial flights is a common practice in the global healthcare and aero-medical industry, managing director at the European Aero-Medical Institute (EURAMI), Claudia Schmiedhuber told AeroTime.  

“There are several companies within the global industry that are specialized in this sector and provide commercial airline medical escorts to thousands of patients every year. Medical escorts take place every day all over the world,” Schmiedhuber said.  

Generally, all commercial airlines that take patients on board require a pre-travel medical clearance, called Medical Information Form (MEDIF), which must be approved well in advance by the carrier’s medical department. The patient’s medical repatriation can only take place with the clearance.  

Schmiedhuber added: “Usually, most of the commercial airlines allow for commercial medical repatriations to take place on their aircraft. However, there are limits in route network and the patient’s conditions which might cause repatriation to be denied.” 

What are the options for medical repatriation on commercial flights? 

Generally, there are three different ways for patients to fly commercially, according to a Medical Air Service report. These are commercial airline repatriation with a medical escort, commercial airline repatriation on a stretcher, and commercial repatriation in a patient transport compartment (PTC). 

Depending on the needs of the passenger and the approval of the airline, patients can be accompanied by a medical crew. Ordinally, patients with a medical escort must book either business or first-class cabins, meaning that the possibility of traveling with a low-cost carrier is greatly reduced.  

Commercial airline stretcher repatriations can be conducted where patients may not be able to use first or business class seating due to physical limitations from injury or illness. The commercial airline stretcher service is usually accommodated at the back of the airplane with a temporary screen to allow for privacy during the flight. 

Meanwhile, seriously ill passengers who need intensive care have the option to travel lying down in a patient transport compartment (PTC). The medical and technical equipment in a PTC is equivalent to that in an air ambulance. 

However, it is worth noting that there are only a few carriers that allow flights with a stretcher or patient transport compartment services.  

“Not all patients are allowed to travel commercially.” 

“It must be understood that airlines do not accept all patients on their aircraft,” Schmiedhuber told AeroTime. 

“Reasons to deny a patient might be, for example, a serious condition, patients who cannot sit up for departure and landing,” Schmiedhuber explained. 

In addition, being able to fly commercially may be denied if the patient’s health condition endangers other passengers. For example, patients with infectious diseases or, in some cases, mental health conditions must be taken care of by an air ambulance. 

What are the main logistical challenges? 

While commercial airline repatriation is a low-cost alternative to traditional air ambulance or helicopter services, there are several logistical challenges, Schmiedhuber explained.  

Major challenges include receiving medical clearance and assuring that all necessary equipment is being carried. In addition, time management becomes an important factor when an injured or ill passenger has a connecting flight. 

“Traveling with a medical patient normally requires more time when transferring to a different flight,” Schmiedhuber said. “Also, with the recent ever-changing COVID-19 related restrictions it has become complicated to assure smooth journey. Organizing transportation very much depends on the patient’s location, destination as well as the patient’s condition.” 

Not surprisingly, planning for a medical airline repatriation can range from a few hours to multiple days. But despite the challenges linked to transporting patients commercially, Schmiedhuber said that there are many advantages to medical repatriation on a scheduled flight.  

“Patients can travel quite comfortably with sufficient space for medical care, shorter connections and flight times as well as cost-effectiveness,” Schmiedhuber explained.  

For instance, the cost of commercial airline repatriation can start from roughly $10,000, while the cost of air ambulance services can start at $30,000. 

Will medical airline repatriation become even more prevalent? 

While medical airline repatriation cannot entirely replace air ambulance or helicopter services, the transportation of injured or seriously ill passengers on scheduled operations will likely begin to rise.  

“I believe that we will see an increase in travel activity over the next few years which will increase the demand for medical repatriations on both air ambulance and commercial carriers,” Schmiedhuber explained. “One aspect in favor of commercial carriers is that we see more and more routes being developed which will help to transfer patients with less connections necessary.” 

Schmiedhuber added: “I think that we will see more commercial medical repatriations being performed in the future and more carriers adapting their fleet and service offerings.” 

Source: Aerotime Hub

The A380’s biggest supporter is asking Airbus to build a new super jumbo

Tim Clark

The A380 super jumbo has many supporters around the world, but none quite as vocal and powerful as Tim Clark, the president of Emirates, by far the largest operator of the aircraft.

The Dubai-based airline purchased nearly half of all A380s ever produced and now has 118 in its fleet, about 80 of which are currently flying.

The entire fleet will be back in the air by spring of next year, as part of a resurgence that has seen the super jumbo reintroduced into service with many of its operators, after the pandemic led many to believe it was ready for retirement.

“The notion that the A380 was a spent force was always a little bit of a difficult one for us to swallow,” Clark told CNN Travel in an exclusive interview.

“I was chuckling to myself, thinking ‘Wait and see.’ We started flying the A380 into Heathrow six times a day in October of last year, and we haven’t had a [free] seat on any of them since.”

The airline will start refreshing the interiors of almost 70 of its A380s later this year, adding a new premium economy class that will slightly reduce passenger capacity from 519 to 484.

The most distinctive feature of Emirates’ super jumbo, however, will remain the legendary shower spa, which offers first class passengers the luxury of a full-fledged shower at 35,000 feet.

There are two such suites, at the front of the upper deck, and Emirates is the only airline to offer them, after Clark explicitly requested them during the final design phase of the plane, in the early 2000s.

“Airbus had come up with a fairly sad possibility of putting benches and having little lounges there, but the notion that you would have bathrooms with showers and all the other bits and pieces was an interesting one,” he says.

“It was a bit of a risk for us, but these were dead spaces which we couldn’t generate income from. I realized that actually they would be hugely popular.”

Convincing Airbus to install them, however, wasn’t easy.

“We designed the showers and then went to Airbus, who were very much arms folded at that time,” Clark adds.

“But prior to the A380’s launch, the marketing program showed double page spreads with avenues of shops, lounges and cafes, so naturally I said, ‘that shouldn’t be a problem for you.’

“Clearly it was, but because we were such a big buyer, they complied. And it’s no mean feat trying to get water up two decks, keep the pressure up, the heating and all that.

“But we succeeded, they worked with us, and the rest is history. People talked about these showers for years and they still do.”

Clark has long lamented the fact that neither Airbus or Boeing plan to build a new plane the size of the A380.

Currently, the largest planes offered by the two leading manufacturers are the Airbus A350-1000 and the upcoming 777-9, which both seat just over 400 people in a standard configuration.

However, deliveries of these planes have been delayed and Clark believes they are too small to replace the A380 in Emirates’ fleet.

“The math tells you that you need a big unit, much bigger than we’re getting at the moment,” he says.

“The biggest one will be the 777-9, whenever that comes to market, which in our configuration [will seat] 364 people against 484 on the A380s with our new premium economy. And it was 519 before, so you get where I’m coming from.”

The “math” Clark refers to comes from demand for air travel, which he says was growing by about 4.5% per year before the pandemic.

Assuming that curve is recaptured, it would take just 10 to 15 years to see demand increase by half.

“Even with multiple 787s and A350s all busy flying around the world, I still don’t get how you will pick up that growth curve,” says Clark.

“Supply will be suppressed, demand will continue to grow, and when that happens prices rise, it’s inevitable.

“If you take the A380s out of the frame by the mid-2030s, how are you going to make it work? Do we see massive upgrades of airfields or new airfields?

“At Heathrow, they can’t even agree on the third runway. [Amsterdam’s] Schiphol has just reduced the number of landings and takeoffs that they will allow. So, one wonders, how would this demand be accommodated?”

‘Open fan’ engine

Clark’s answer is a new plane as big as the A380, if not bigger, with modern features such as lightweight composite materials and more efficient engines.

“Is it possible to redesign a new A380? Yes. Is it possible to lighten the aircraft? Yes. When they brought this aircraft to market, composites weren’t really [widespread],” says Clark.

“Imagine a composite wing and a predominantly composite fuselage. Imagine engines that are giving you a 20 to 25% improvement compared to what you get today.

“So you get a lighter aircraft, far more fuel-efficient, which ticks all the boxes as far as the environmentalists are concerned.”

One of the A380’s biggest drawbacks are its four engines, which are inefficient to today’s standards and fuel prices. A new version would require an entirely new engine technology.

Clark says there are “very interesting studies” going on in this field, but he adds that most of the research over the last 20 years has been focused on narrow-body aircraft.

An “open fan” engine, which appears to be a propeller but is actually a larger, unducted version of the fan found inside every modern jet engine, is one of the most promising new types of engines and could cut fuel consumption and emissions by as much as 20%.

It will be trialed on an A380 test plane.

However, it’s not meant for the aircraft: Brand new planes will need to be designed to fit these engines, and at least in the beginning, they will most likely be single aisle aircraft, similar to the 737 and A320.

“We’re trying to get everybody working on the big fans for the bigger aircraft as well,” he says.

“If you can get them to do what I think they could do in terms of fuel efficiency and power, then you have the makings of an airplane that would match or beat the economics of the [twin-engine aircraft] that we see today, by quite a long way.”

The problem with this plan is that just like the A380 wasn’t popular with airlines, a similarly sized successor likely wouldn’t be.

“Do I think that airlines will step up and sign up to this project? Doubtful at this stage,” says Clark.

“On the one hand I’m very keen to take a good hard look at this, on the other I’m not optimistic that the stakeholders in the ecosystem are up for it.

Looking to the future

“The airline industry is, rightly so, populated with people who are conservative in nature, because they’ve lost their shirts — this has been a seriously bad time for air travel.

“But now, things are starting to look a lot better, demand is back. So they have the ability to think hard about the future.

“Whether they’ve got the appetite for it, I don’t know. I know we have it.”

Geoff Van Klaveren, an aviation analyst and managing director of advisory at independent aviation consultancy IBA, agrees with Clark that there’s a need for a larger plane, but also that it won’t be easy to get one.

“There’s definitely room for a Boeing 747 replacement, but I don’t believe there’s enough demand to start a program for an aircraft larger than the A380.

“A very large plane is key to Emirates’ business model, because 70% of their passengers connect to other flights, but I don’t think Airbus or Boeing will build one just for them,” he says, adding that the most likely outcome is that even larger, higher capacity variants of the A350 and the 777 will be made instead.

However, Clark will not be moved.

“I’ve spoken to Airbus more than once,” he says. “I think they’re beginning to take it a little bit more seriously, but at the moment they are concentrating on their single aisle planes and the A350 line.

“I suspect people like [Airbus CEO] Guillaume Faury really would like to see something like this and recognizes what I could call the commercial imperative for it.

“But he is very much a technologist and will only do what his engineers and the technology will allow him to do.”

Looking at the post-pandemic travel chaos that is causing canceled flights, endless security lines and heaps of lost luggage, Clark isn’t very optimistic.

“I think you’ll see a continuation of this until the summer of next year,” he says.

“We are not out of the woods by any stretch of the imagination. And as more markets like China, Japan and Korea open up, they will exacerbate the problem, unless the likes of Heathrow, Frankfurt and Amsterdam get their act together and start getting people into place.”

The Emirates boss says he’s amazed at the resilience of the traveling public for putting up with all of this, but they’ll have to be patient for a while longer.

“I see strong demand for the next year,” he adds. “It’s a patchy one, but my instinct is telling me the airline industry will be okay in a year’s time and things will gradually become good when we get back into equilibrium — middle of next year, or end of next year.”

Source: CNN

Soaring cost of flying cargo threatens region’s recovery

Everywhere around the world, reports indicate, the cost of flying cargo continues to rise and negatively impact on an industry that is yet to fully recover from Covid-19 pandemic.

The Africa Airlines Association (AFRAA), a trade association of airlines on the continent, indicates that expensive jet fuel, or aviation turbine fuel, and other expenses are weighing down on profits.

According to AFRAA, full-year revenue loss for African airlines for 2022 is estimated at $4.1 billion, equivalent to 23.4 percent of the 2019 revenues.

To stay in business, reports indicate, airlines adjusted their fares upward because of a sharp rise in the cost of jet fuel. The cost of jet fuel, it is reported, has increased 36 percent in the last six months, prompting airlines to add a special levy to protect their margins.

John Bosco Kalisa, the CEO of the East African Business Council (EABC), stressed that “this is terrible” as it will increase the cost of doing business in the region.

“Already the airlines are struggling to recover from devastating impact of Covid-19. Any additional charges will derail the recovery of both the cargo and passenger flights,” he told Doing Business.

The cost of jet fuel – which accounts for a significant portion of expenses involved in running an aircraft – hit a high of $1.25 a litre from $0.85 in January, piling pressure on airlines at a time when the demand for flying remained low as the industry still recovered from effects of Covid-19.

In Rwanda, high freight rates are already casting a shadow over, among others, Rwanda’s horticulture export prospects.

According to Robert Rukundo, chairperson of the Horticulture Exporters Association of Rwanda (HEAR), prices of airline charges increased from Rwf1.8 million to Rwf2.2 million, the latest being Rwf2.5 million because of the rise in fuel costs and taxes. As noted, the cost is $2.67 per kilo in terms of gross weight.

Horticulture exporters especially worried that national carrier RwandAir planned to increase the airfreight fee on a kilogramme of fresh produce from $1.8 to $2, effective August 1.

“Freight charges have gone up because jet fuel prices have doubled in the last few months. All airlines have increased the rates,” Yvonne Makolo, Chief Executive Officer of RwandAir, told Doing Business on Monday, August 1.

Asked what they are advocating for, Theoneste Ntagengerwa, the Private Sector Federation (PSF) Spokesperson, told Doing Business that: “The solution on our side should focus on finding a Rwandan owned cargo airplane, which can allow us to export big quantities but also lowering the cost for export.”

“The second aspect to consider should also be proper policies that support increase of our export to avoid the cargo [plane] being underutilized.”

But Makolo noted that even when RwandAir eventually secures a cargo plane, high freight charges could stay.

She said: “The freighter is in the process of being acquired but that’s not the answer. It will provide additional capacity but unless fuel prices come down, the rates will still be high.”

Besides the pandemic, the war in Ukraine also affected earnings by airlines that had to endure rising costs of jet fuel.

Source: The New Times

Airport Labor Crisis Goes Beyond Pay, Ground-Handling Giant Says

Airports need to address their unpopularity as a workplace if they’re to resolve a labor crunch that’s spawned a summer of travel chaos, the world’s biggest ground-handling firm said.

While pay hikes may narrow the staffing gap, they won’t resolve deep-seated issues in attracting new recruits, Tarek Sultan, vice chairman of Agility Public Warehousing Co., said Friday after the Gulf firm completed the purchase of John Menzies Plc, which provides handling at hubs including London Heathrow.

“It’s really hard to hire people in this day and age after Covid and we’re really trying to figure out why,” Sultan said on Bloomberg Television. “Nobody has a 100% clear answer. We have to be competitive with our wages, but we also have to look at other ways to improve retention and make this industry a more attractive place to work.”

Heathrow last week blamed airlines and their ground handlers for the turmoil that’s been afflicting European travel for months as demand rebounds from the pandemic. Chief Executive Officer John Holland-Kaye said they’ve been too slow to recruit and that handlers including Menzies are in some cases not paying enough to compete with firms like Amazon.com Inc. as they seek staff.

Sultan said that while Kuwait-based Agility understands that it must invest to beef up the workforce, costs would need to be passed on and the airline industry right now is “not the ideal place to be looking to increase prices to customers.” Expenses would have to be offset “in a very measured way.”

He said the travel situation should improve over the next couple of quarters, and that in future the aviation industry as a whole needs to do better in anticipating demand and coordinating step changes in operations.

Edinburgh-based Menzies said Friday that its London Stock Exchange listing was canceled as of 7 a.m. after Agility completed the 571 million-pound ($694 million) takeover.

Agility’s National Aviation Services will take on the name and identity of the Scottish firm, which traces its origins back almost 190 years and provides ground handling, aircraft fueling and cargo services at more than 200 locations in about 40 countries.

NAS operates at about 55 airports across the Middle East, Africa and South Asia.

Source: Bloomberg

Lufthansa Cargo, Cathay Pacific add Swiss WorldCargo to air freight agreement

Lufthansa Cargo Cathay Pacific Swiss WorldCargo

Lufthansa Cargo and Cathay Pacific have expanded their cargo partnership to include Swiss WorldCargo, which they say will provide customers with more choice.  

The freight arm of Germany’s Lufthansa Group and the Hong Kong-based airline first set up their cargo joint business agreement in 2016, allowing them to coordinate sales, pricing, contracts, and the handling of shipments between Hong Kong and Europe.  

Adding Swiss WorldCargo to the agreement will see the airlines initially cooperate on traffic from Hong Kong to Zurich and Frankfurt. Traffic to and from Hong Kong and the rest of Europe will be included in the expansion with Swiss WorldCargo later this year, the carriers said.  

The expanded partnership comes amidst a busy time for the air freight industry, with supply chain problems resulting from COVID-19 restrictions having boosted the importance of air freight as a method of transporting goods. Lufthansa Cargo has posted record financial results and says an end to the air cargo boom is not in sight.  

Swiss World Cargo is the air freight arm of Swiss International Air Lines, itself a part of the Lufthansa Group.  

“The addition of Swiss WorldCargo’s flights to the already large combined network of Cathay Pacific and Lufthansa (LHAB) (LHA) will further bring Hong Kong, the world’s busiest air cargo hub, closer to Europe and strengthen one of the world’s great trade lanes,” commented Cathay Pacific Director Cargo Tom Owen in a statement on May 31, 2022.  

Lufthansa Cargo CEO Dorothea von Boxberg said cargo customers should gain quicker and easier shipping. “The expanded joint venture will generate numerous benefits for our customers because our networks, our hubs and our fleet complement each other effectively.” 

The carriers said the joint activities will be carried out in compliance with all relevant laws, including those in Hong Kong and the European Union. 

Source: Aerotime Hub