Besides charging Nigerian air travellers exorbitant fares, aviation experts have raised concern over foreign airlines’ inability to repatriate trapped funds in Nigeria, insisting that Nigeria has become a country with the highest amount of foreign airlines’ trapped funds while highlighting its implications.

The implications according to them include the designation of Nigeria as a high-risk country in doing businesses related to aviation; the increase in insurance premium due to country risk and also the reluctance of lessors to lease aircraft to Nigerian carriers or to do so at very high cost.

Experts believe Nigeria having the highest amount of the trapped airlines’ funds is not good for the country because of the perception of Nigeria in global aviation industry.

Speaking, the Managing Director and CEO of Aero Contractors, Captain Ado Sanusi told THISDAY that said that the Maintenance, Repair and Overhaul (MRO) facility owned by Aero Contractors, benefit from credit guarantee extended to MROs by suppliers, but explained that this might be suspended because of the rising amount of trapped airlines’ funds in Nigeria.

He noted that in global reckoning, the policy or action taken by a country influences how the companies in that country are treated.

He said no matter the goodwill enjoyed by a Nigerian company, international financiers, lessors and aircraft insurers like Lloyd, may not deal with any company in Nigeria without considering policies and actions taken by the Nigerian government.

“This is why the designation of a country determines how airlines in that country are dealt with. If a country is designated as high risk, it influences the way companies in the country are perceived and related with. So if the trapped funds are not remitted to the airlines and the funds keep piling up, it is not good for the country.

“It will affect Nigerian airlines when they want to lease aircraft. Some lessors may not want to deal with the airlines because of country risk. They may ask the airline to pay almost two times what an airline in another county will pay for similar leasing arrangement. We have what we call consumables in aircraft maintenance. Suppliers give MROs credit facility up to $300, 000 to $400, 000 but when the look at Nigeria and they see the piling airline debts, they may decide not to extend the guarantee to Nigeria. They will term Nigeria a high-risk country, so they won’t give us credit facility,” Sanusi said.

The International Air Transport Association (IATA) on Tuesday disclosed that the trapped funds belonging to foreign airlines operating in Nigeria had reached $734,721,097 from $662 million in January 2023.

IATA disclosed this in a letter addressed to the Minister of Aviation, Hadi Sirika, and signed by the Area Manager West and Central Africa, Dr Samson Fatokun.

Nigeria has remained the country with the highest amount of trapped airlines’ funds and in December last year, IATA published the countries with the highest trapped funds as follows: Nigeria: $551 million, Pakistan: $225 million, Bangladesh: $208 million, Lebanon: $144 million and Algeria: $140 million.

IATA had warned that the amount of airline funds for repatriation being blocked by governments had risen by more than 25% ($394 million) in the last six months and disclosed that total funds blocked then tallied at close to $2.0 billion.

It therefore called on governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities, in line with international agreements and treaty obligations.

IATA is also renewing its calls on Venezuela to settle the $3.8 billion of airline funds that have been blocked from repatriation since 2016 when the last authorization for limited repatriation of funds was allowed by the Venezuelan government.

IATA’s Director General, Willie Walsh, said: “Preventing airlines from repatriating funds may appear to be an easy way to shore up depleted treasuries, but ultimately the local economy will pay a high price. No business can sustain providing service if they cannot get paid and this is no different for airlines. Air links are a vital economic catalyst. Enabling the efficient repatriation of revenues is a critical for any economy to remain globally connected to markets and supply chains.”

IATA also disclosed that airline funds were being blocked from repatriation in more than 27 countries and territories.

On Nigeria, IATA stated that the total airline funds blocked from repatriation in Nigeria as at December last were $551 million, stating that repatriation issues arose in March 2020 when demand for foreign currency in the country outpaced supply and the country’s banks were not able to service currency repatriations.

But IATA also noted that despite the challenges, Nigerian authorities have been engaged with the airlines and are, together with the industry, working to find measures to release the funds available.

“Nigeria is an example of how government-industry engagement can resolve blocked funds issues. Working with the Nigerian House of Representatives, Central Bank of Nigeria (CBN) and the Minister of Aviation resulted in the release of $120 million for repatriation with the promise of a further release at the end of 2022. This encouraging progress demonstrates that, even in difficult circumstances, solutions can be found to clear blocked funds and ensure vital connectivity, “said the Regional Vice President for Africa and the Middle East, IATA, Kamil Al-Awadhi.

Foreign airlines now discourage the purchase of tickets in Naira due to the trapped funds and for them to accept Naira as means of payment they up the price of the ticket.

So the foreign airlines have close their low inventory (low fares) and open their high inventory for Nigerians who wish to pay for tickets in Naira, while the low inventory are available in dollars.

Any Nigerian traveller who wishes to buy ticket at low rate, as sold by the airline to other countries, must pay for ticket in dollars; otherwise, an economy return ticket that could be sold for $700.00 could be sold for N2 million.

Source: This Day

As “record aircraft deliveries” make headlines in the Middle East and India market, the current supply chain constraints leave us wondering if the aircraft makers would be able to keep pace with the demand.

Despite a sluggish international travel market, the pace of recovery in the Middle East aviation market accelerated throughout 2022 and is expected to take off over the next 10 years with the region’s share of the global fleet set to expand. In its “Global Fleet and MRO Market Forecast 2023-2033,” global management consulting firm Oliver Wyman noted that the Middle East remains among the fastest-growing aviation markets in the world, with the regional fleet set to expand 5.1 percent annually over the next decade. The report further noted that the Middle East’s share of global fleet will grow over the decade from 4.9 percent in 2023 to 6 percent in 2033.  Meanwhile, the global fleet is projected to expand one-third by 2033, to well over 36,000 aircraft, with Oliver Wyman also anticipating a record number of aircraft deliveries over the next 10 years (despite current supply chain constraints). The Middle East fleet’s growth over the next decade will primarily be driven by the addition of narrow bodies. Historically, the Middle Eastern fleet has been primarily made up of widebodies. But moving forward, the report observed that narrow bodies will increase to 48 percent of the fleet from 39 percent, while wide bodies will decline to 48 percent from 56 percent.

Highlighting key travel trends to Saudi Arabia for the month coinciding with Ramadan, global travel marketplace Skyscanner noted that travellers from across the Gulf, UK, Egypt and Germany are amongst the most popular making their way to the kingdom during this time. With over 70 percent of travelers looking for trips between one and two-week long, Jeddah is the airport of choice, accounting for 75 percent of bookings. “As restrictions ease and capacity increases, we are seeing travel demand return to pre-pandemic levels, if not higher,” said Ayoub El Mamoun, Skyscanner travel expert. “Travel remains a key priority, with many travellers across the Gulf, such as the United Arab Emirates and Saudi, planning the same or more trips in 2023 than they did the year previously.”

Oman welcomed 2.9 million tourists in 2022, a 348 percent increase compared to 2021. The number of tourism projects and hotel establishments also increased relatively. This information was announced by Ibrahim Said Al Kharousi, undersecretary of the ministry of heritage and tourism in Oman. Al Kharosi was speaking at the Global Travel Week Middle East hosted by Oman. Around 200 luxury tourism specialists had participated at the event that sought to introduce tourism hotspots, exchange tourism experiences and reaffirm commitment to support and develop travel and tourism in the region. With the prime aim of showcasing Oman’s tourism potential, Global Travel Week sought ways to establish long-term relations between international markets and Gulf destinations, said Al Kharousi.

Dubai’s Department of Economy and Tourism has announced the relaunch of the Carbon Calculator tool that measures the carbon footprint within Dubai’s hospitality sector. The tool has now been revamped to track real-time data for carbon emission sources, allowing hotels to identify and effectively manage their energy consumption. The improvements are part of the Dubai Sustainable Tourism (DST) initiative that seeks to contribute to the broader clean energy targets and support the United Arab Emirates’ Net Zero by 2050 Strategy, in line with the United Nations Sustainable Development Goals (UNSDGs) 2030. The initiative also supports the goals of the Dubai Economic Agenda D33, to consolidate Dubai’s status as one of the top three global cities and enhance its position as one of the world’s leading sustainable tourism destinations. Since its inception in January 2017, Dubai Sustainable Tourism’s Carbon Calculator, part of the Tourism Dirham Platform, has been measuring the carbon footprint of hotels across Dubai.

Travel marketing platform Sojern shared its latest data highlighting that the Middle East continues to build on its strong travel momentum even in 2023. With relatively quick bouncebacks from Covid-19 in the United Arab Emirates, and Saudi Arabia seeking to secure its place on the tourist map with an ambitious visitor push, Sojern said the strong travel intent to the region would continue well into 2023. As of February, Sojern sees that 2023 flight searches are up year-on-year globally. With last year’s FIFA World Cup boosting travel recovery in the region, Sojern looks at the current state of play for travel now that the tournament dust has settled. The travel marketing platform noted that Qatar continues to ride the World Cup wave with particularly strong interest from Latin America. Lodging demand from regional Middle East travellers is also up 123 percent. Sojern also noted that over 75 percent of U.S. travellers are staying in the region for more than eight days. Compared to other long-haul destinations in Asia they are more willing to stay for over one week making them high-value travellers for Middle Eastern destinations.

Knowland, the provider of data-as-a-service insights on meetings and events for hospitality, announced its expansion in the Middle East to include Doha. Knowland’s extension into the Middle East will continue throughout 2023 to accommodate the demand and competition facing new hoteliers. Calling Middle East one of the fastest-growing hospitality markets in the world, Knowland said this has created several challenges including steep competition as well as the necessity to train sales teams who may have never worked in the hospitality industry. “The world’s largest active pipeline of new hotels is in the Middle East, so as we continue to build on the exciting growth in Qatar, we are also focused on expanding our reach throughout the increasingly popular region for local and global meetings and events,” Jeff Bzdawka, CEO of Knowland said. The company plans to open additional Middle East markets this year.

Hyatt shared that 45 percent of the properties that joined Hyatt’s system in 2022 were based in Europe, Middle East and Africa market and the region’s contribution to the Hyatt growth journey continues into 2023 through a strong pipeline with ten percent of Hyatt’s 117,000 rooms record pipeline, as of fourth quarter earnings, expected to join the portfolio in the region. Properties classified as lifestyle hotels make up nearly one fourth of the Europe, Middle East and Africa market pipeline, expanding the portfolio to more sought-after leisure destinations and strengthening the World of Hyatt value proposition. Notable drivers for the expected regional growth include several large-scale leisure portfolio integrations, adding a substantial number of rooms to the World of Hyatt program and the hyatt.com booking flow as well as organic growth for the Park Hyatt, Grand Hyatt, Hyatt Regency and The Unbound Collection by Hyatt brands slated for 2023 and the years ahead.  

Members of the Bureau International des Expositions (BIE) enquiry mission are in Riyadh for their 6-day evaluation process of the Riyadh Candidacy for World Expo 2030. Saudi Arabia announced its bid to host World Expo 2030 in Riyadh in October 2021 and, since then, senior Saudi government officials have made three presentations to the BIE General Assembly. The year 2023 will see key milestones for Riyadh Expo 2030 with the current enquiry mission visit, a presentation to the General Assembly in June and the final vote by the General Assembly in November 2023. Members of the enquiry mission will engage with ministers, members of government and subject matter experts, to evaluate the details of the Riyadh Expo 2030 bid. “Its theme outlines a vision to create a unique and collaborative platform for global problem-solving with an enduring legacy, led by foresight and geared towards delivering impact at a global scale,” a release stated.

Qatar Airways launched a new brand campaign in collaboration with Indian actor, Deepika Padukone. The campaign launch is the culmination of the airline’s endeavor to redefine Qatar Airways premium experience, particularly through showcasing the Q-Suite, the airline said in a statement. Calling Padukone an obvious choice, Qatar Airways Group Chief Executive, Akbar Al Baker, said, “She has the right global appeal and charisma for our brand.” Qatar Airways currently flies to more than 150 destinations worldwide, connecting through its Doha hub, Hamad International Airport.

Hotel management company Shaza Hotels has entered into a brand-wide agreement with WebBeds, a global marketplace for travel brands. Based on the agreement, WebBeds will undertake brand wide pricing and distribution globally for all Shaza and Mysk Hotels through their distribution networks, connecting travel agents and trave trade suppliers. This partnership will strengthen Shaza Hotels’ distribution network and expand its reach in the global travel market, the company said in a statement. Shaza Hotels also announced its ambitious expansion plans in the region, which includes the opening of properties in Dubai, Jeddah, Madinah, Sharjah and Muscat. The group said that it is also aiming to develop its Shaza and Mysk portfolio outside the Gulf region, to U.S., Turkey, Egypt and Levant.

Leading luxury hospitality company Four Seasons Hotels and Resorts announced plans to introduce a Four Seasons Resort as part of The Red Sea masterplan development in Saudi Arabia. Touted to be one of the region’s foremost luxury beachside destinations, The Red Sea will comprise idyllic natural islands and lagoons across 124 miles of coastline along the western coast of Saudi Arabia, between the cities of Umluj and Al Wajh. The new Four Seasons Resort will be located on Shura Island. “As we continue to expand Four Seasons presence in the region, our new project in the Red Sea will be one of our first resorts in Saudi Arabia,” said Bart Carnahan, president, global business development and portfolio management. The new Four Seasons Resort, designed by Foster + Partners, will offer approximately 149 rooms and suites.

Emirates and Philippine Airlines have signed an interline agreement to boost connectivity for passengers of both air carriers to new points on each other’s networks via Manila and Dubai, using a single ticket and one baggage policy. The partnership provides Emirates’ passengers access to 19 Philippine domestic destinations operated by Philippine Airlines, including Cebu, Cagayan de Oro, Bacolod, Cotabato, Davao, Iloilo, Kalibo and more, as well as two Asian regional points via Manila. Passenger of Philippine Airlines will also benefit from access to Emirates’ global network beyond Dubai. The partnership will help open new links for trade and tourism that will drive more inbound traffic into the market, and expand Emirates’ footprint in East Asia, said Adnan Kazim, Emirates’ Chief Commercial Officer, as he called The Philippines one of the strongest consumer markets for the airline.

Source: Skift

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

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

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

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

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

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

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

Flights to protect slots?

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

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

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

The bigger picture

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

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

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

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

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

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

More flexibility, not less

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

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

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

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

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

Source: Airlines

IATA and the Government of the Federal Republic of Somalia agreed to deepen and formalize cooperation with the aim of strengthening the economic and social benefits of aviation in Somalia.

Under an agreement signed by Kamil Alawadhi, IATA’s Regional Vice President, Africa and the Middle East, and H.E. Fardowsa Osman Egal, the Minister of Transport and Civil Aviation, Federal Republic of Somalia, a new framework was established that will also see an expansion of IATA’s activities in the country.

“Aviation is a significant contributor to the UN’s Sustainable Development Goals (SDGs), so the potential for a strengthened air transport sector to contribute to Somalia’s development is enormous. This agreement aims to realize that potential for social and economic development by focusing on global standards and best practices. H.E. Minister Fardowsa Osman Egal has a strong vision for a successful aviation sector to contribute to a more prosperous Somalia. And we are determined to support that by turning the words of our agreement into real actions,” said Alawadhi.

The agreement provides the framework to support IATA’s mission for aviation in Africa: the creation of a safe, efficient, sustainable, and economical air transport sector that generates growth, creates jobs, and facilitates international trade and tourism as well as playing an essential role in supporting the UN SDGs through generating connectivity between nations.

“Aviation is essential to the success of Somalia’s development plans.  The Government of Somalia is committed to developing its air transport sector to help promote long-term social and economic growth in the country. And we will ensure that global best practices are at the core of development. This agreement will pave the way for closer cooperation on the priorities for aviation in the country,” said Egal.

Source: Airlines

The aviation community has welcomed the restoration of air traffic control services over Somalia.

The International Air Transport Association (IATA), said the reclassification of Mogadishu Flight Information Region to Class A airspace, will improve safety through improved situational awareness for pilots flying through the country’s upper airspace.

Coming 30 years since radio navigation went silent over Somalia, the development follows the installation of new navigation and other aeronautical infrastructure. The International Civil Aviation Organisation (ICAO), officially restored Class A air traffic control services over Somalia on January 26.

Until now, pilots flying over Somali airspace depended on the IATA in-flight broadcast procedure where they announce — on a dedicated radio frequency — their aircraft’s position, altitude, heading and speed. It is then up to any airborne pilots of other aircraft to be tuned to the same frequency and listen out for such broadcasts.

There has been no one on the ground to coordinate the traffic and assign aircraft to flight levels or warn pilots if their aircraft were converging or in too close proximity to each other.

Busy air corridor

The IATA in-flight broadcast procedure is implemented in areas where air traffic control becomes unavailable.

“Air traffic control means there is someone with the full spatial picture who can guide the passage of aircraft through the airspace in a safe and coordinated manner,” an expert told The EastAfrican.

According to IATA, Somalia hosts some of the region’s busiest airways that link the African subcontinent south of Ethiopia with the Middle East and Indian subcontinent as well as Western Europe with the Indian subcontinent and Indian Ocean islands. All these cut across Somalian airspace, which is officially known as the Mogadishu Flight Information Region (FIR).

Enhance situational awareness

“The upgrade of air traffic management and improved navigation and communication infrastructure will enhance situational awareness along an increasingly busy air corridor and its intersections with routes linking many of the world’s regions,” said IATA’s Regional Vice President for the Middle East and Africa, Kamil Al-Awadhi.

The reclassification of the airspace and operational resumption of air traffic control in the Mogadishu FIR comes after successful trials that began in May 2022.

All flights operating in Class A airspace must be cleared by air traffic control which is also responsible for maintaining lateral and vertical separation between aircraft.

Source: The East African

The International Air Transport Association (IATA) has called on governments to begin repatriating blocked airline funds following a 25% increase since June. The combined total owed currently sits at almost $2 billion, divided across 27 countries.

$1.2 billion trapped in five nations

In a statement released on Wednesday, the IATA warned about the skyrocketing amount of trapped funds as governments attempt to pad the impact of currency crises. Across the past six months, the figure has increased by almost $400 million to $2 billion, with over 60% of the blocked amount attributed to just five countries: Nigeria, Pakistan, Bangladesh, Lebanon, and Algeria.

IATA Director General Willie Walsh cautioned the nations with outstanding debts to airlines, citing compliance with respective international agreements and obligations.

“Preventing airlines from repatriating funds may appear to be an easy way to shore up depleted treasuries, but ultimately the local economy will pay a high price. No business can sustain providing service if they cannot get paid and this is no different for airlines. Air links are a vital economic catalyst. Enabling the efficient repatriation of revenues is a critical for any economy to remain globally connected to markets and supply chain.”

Currency crises

Nigeria is the highest debtor named by the IATA, with coverage of the crisis seeing significant coverage through summer and autumn. The debt notably became the subject of an ongoing feud between the government and Dubai-based Emirates. Last month, the airline withdrew from operations in the West African nation after continued delays in repatriating its revenue.

In September, Nigeria announced it would begin fining carriers that did not sell tickets in naira amid its ongoing international currency crisis, inflating total blocked funds to almost $700 million in late October. Although $551 million is still pending repatriation, Kamil Al-Awadhi, IATA Regional Vice President for Africa and the Middle East, praised the country’s collaborative and constructive work to begin resolving the issue despite difficult circumstances and release $120 million in November. A further release is expected by the end of the year.

Pakistan trailed behind Nigeria, with $225 million owed. While no formal currency crisis has been declared, economists at Bloomberg have warned of a sharp increase in its probability through 2023 after the country sought to ease conditions for the $1.1 billion International Monetary Fund (IMF) loan provided in August.

Bangladesh, Lebanon, and Algeria round out the top five, owing $208 million, $133 million, and $140 million, respectively.

Returning to Venezuela

Outside of the $2 billion owed, the IATA has turned its eyes to Venezuela, which racked up $3.8 billion in airline debt during a prolonged period of hyperinflation, political instability, and international sanctions. The government has blocked the repatriation of airline funds since 2016, leading to international air traffic into Venezuela dropping by 62% between 2016 and 2019.

Since 2021, the country has made significant headway in bolstering its economy, recording 17.04% year-on-year economic growth during the first financial quarter of 2022. Several carriers, including TAP Air Portugal, LATAM, and Avianca, have already resumed flights to Venezuela as the country moves to promote its tourism market.

While several governments remain unconvinced of the country’s stability and continue to advise against travel, Venezuela has notably seen an uptick in arrivals from Russian holidaymakers seeking “friendly” destinations. Nordwind Airlines relaunched direct services between Moscow Sheremetyevo (SVO) and Margarita (PMV) on October 2, welcoming 3,000 tourists to the resort island during October and November. A recently assigned agreement between both countries could see a potential 100,000 Russian holidaymakers visit the country before the end of the year.

Source: Simple Flying

After minimal progress since its launch in January 2018, the Single African Air Transport Market (SAATM) appeared to reach a decision this week with 15 of the 35 signatory states launching a cluster to pilot the scheme in real life.

The announcement is a major boost to the proposed joint airline by Kenya Airways and South African Airways, which will have immediate and unlimited access to key markets on the continent as both countries will be participating in the trial runs.

It is also a signature achievement for the International Air Transport Association (IATA), which has been working behind the scenes to get SAATM off the ground in 2023.

Dubbed the SAATM Pilot Implementation Project, the landmark decision – which bands together some of Africa’s more significant air transport markets – was announced on November 14 by the African Civil Aviation Commission (AFCAC). 

Meeting in Dakar, Senegal, to mark the 23rd anniversary of the Yamoussoukro Decision, ministers from Kenya, Ethiopia, Rwanda, South Africa, Cape Verde, Côte d’Ivoire, Cameroon, Ghana, Morocco, Mozambique, Namibia, Nigeria, Senegal, Togo and Zambia, agreed to launch SAATM flights between their territories.

Align agreements to SAATM

The 15 states are expected to cement their decision further by aligning their respective air service agreements to the SAATM regime when they again meet during this year’s International Civil Aviation Organisation (ICAO) Air Services Negotiation in Abuja on December 5.

According to the African Civil Aviation Commission, the pilot markets were selected based on their willingness to participate and possession of key enablers for fully liberalised skies on the continent.

The benefits

According to a recent study by the African Union on the potential benefits of SAATM implementation, the continent would gain an additional $4.2 billion in GDP, 596,000 new jobs and a 27 percent reduction in air fares.

“The study also assessed the level of the Yamoussoukro Decision (YD) implementation and the efficacy of SAATM operationalisation for each member state and arrived at a “preparedness” rating using the SAATM enablers. These 15 states met the favourable environment for successful SAATM implementation,” AFCAC says.

The commission says 35 member states have committed to unconditionally implement SAATM while 21 states have signed the memorandum of implementation for its operationalisation.

The 35 states are estimated to account for over 85 percent of intra-African traffic and over 800 million of Africa’s 1.2 billion population.

Although SAATM’s predecessor, the Yamoussoukro Decision, has theoretically been in force since July 2000 when African heads of state and government endorsed it during their meeting in Lomé, Togo, African skies have remained largely closed, with countries opting for bilateral air services agreements.

Improve connectivity

The major objective of the Yamoussoukro Decision was to improve connectivity and integration of Africa through liberalisation of scheduled and non-scheduled air transport services and removing all restrictions on traffic rights, capacity and frequency between city pairs for all African airlines. But the continent has struggled to actualise it.

AFCAC Secretary General Adefunke Adeyemi says the commission is now expecting member states to align their respective air service agreements and for eligible airlines to begin to expand operations across the continent.

“The launch of SAATM as the first flagship project of the AU Agenda 2063 on January 28, 2018, is considered as a turning point towards the full liberalisation of air transport market on the continent,” Adeyemi said.

The pilot is expected to demonstrate the benefits and build the confidence of bystanders to fully open their air transport markets.

“With the unveiling of this pilot project of ready and willing African states that have requisite SAATM implementation enablers and with the overall benefits associated with the liberalisation of the African air transport through the YD, including air transport’s contribution to the AFCFTA to facilitate intra-African trade, this will elicit the commitment of member states that have not yet signed the Solemn Commitment to sign up,” Adeyemi added.

Lift African aviation traffic

Speaking on the side-lines of Aviation Africa 2022 summit in Kigali in September, IATA vice president for Africa and the Middle-east Kamil Al Awadi said he had committed the bulk of his resources for 2023 to getting SAATM off the ground and lifting African aviation traffic to at least three percent of the global total.

Opening up intra-African air travel and connectivity would not only boost domestic air traffic but have a knock-on effect on international traffic as well, he says.

At only 1.9 percent of global traffic in 2019, Africa’s aviation contributed $63 billion to the continent’s GDP and 7.7 million jobs, half a million of them direct.

“I want to see these numbers next year jumping a percent at least. If it goes up it means we are going the right direction; if it goes down, we are going the wrong direction.

“IATA is going to pour as much resources as it can afford into the region to get it up and running,” he says.

Kamil says given Africa’s population and resources, the continent’s share of global aviation should be closer to 15 percent.

Build consensus

His plan revolves around getting at least 15 countries to build consensus around the problems and fears that are holding back liberalisation of the air traffic market, and to come up with a corrective plan of action.

The conversation will revolve around demonstrating to participants how removing constraints to travel such as capacity caps and reducing taxes on the industry can boost traffic and result in a much better overall picture.

“Every trip I make into Africa, I can’t get into any country directly; I have to go through another country. It is a continent that is so disconnected that it is easier to jump out and then back in to make it to the country next door,” Kamil said.

“I am pushing and hopefully by January 2023, we are starting to push all stakeholders with the intention to first of all get some routes open internally so that you can move within African easily.”

Source: The East African

Participating in a round table of Heads of State, Prime Ministers and Chiefs of International Organizations during COP 27, ICAO Council President Salvatore Sciacchitano advocated for the realization of the ICAO Assembly’s decision to reach net zero emissions from air transport by 2050.

“Achieving net-zero carbon emissions by 2050 will require substantial and sustained investment and financing over the coming decades. We must furthermore assure reliable and affordable support and capacity-building for the many developing countries and States with particular needs, who will be depending on it to help play their part,” Mr. Sciacchitano said. “An important part of my message to you here today is that the work to begin addressing these objectives for our sector has already started.”

This goal is to be achieved collectively, without attribution of specific obligations or commitments in the form of emission reduction goals to individual States. One of the key features of the agreement is the recognition that each State’s special circumstances and respective capabilities will inform each State’s ability to contribute, and within its own national timeframe.

“ICAO is fully cognizant of its global responsibilities towards the sustainable future of the international aviation sector, and of the planet. We also remain deeply cognizant of the critical importance of international air connectivity to the civil societies and economies of Small Island Developing States, Landlocked Developing Countries, and Least Developed Countries,” remarked the Council President. “As aviation continues to explore and adopt the incredible new technological innovations arising today in aeronautics and renewable energy propulsion, ICAO also recognizes how imperative it is to start putting in place the right policies, legal frameworks and modernized infrastructure to enable this evolution to emissions-free flight.”

For example, ICAO launched its Assistance, Capacity-building and Training for Sustainable Aviation Fuels (ACT-SAF) programme in June. It will provide tailored support to States on sustainable fuel development and deployment, and facilitate related partnerships and cooperation around the world. An increasing number of States and international organizations are becoming actively involved in this programme, which recognizes the key role to be played in this endeavour by sustainable fuels, and we expect many more States and organizations to join in the coming months.

To reduce the impacts of aviation on the global climate, States, the industry, and all other relevant stakeholders have in fact been pursuing a basket of CO2 reduction measures through ICAO for many years now. This contributed to modern aircraft being 70% quieter and 80% more fuel-efficient than their early predecessors.

The introduction of radical, disruptive, and in many cases revolutionary innovations in technologies and operations is now required to deliver the overall decarbonization needed to keep global temperatures in check.

“This transition, fuelled by frontier technologies and featuring many new entrants to the aviation ecosystem, holds tremendous economic potential for developing States. We are greatly encouraged at ICAO that it can also help establish a more level playing field toward an inclusive and effective global green transition in aviation in the coming decades,” Mr Sciacchitano said. “We will be proud to leverage our 78 year history of driving international consensus and progress in air transport to assure that this is realized.”

In the immediate term, ICAO Member States and industry will continue pursuing additional sustainability objectives, notably through the aforementioned expanded use of sustainable aviation fuels and the ongoing implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Source: Travel Daily News

Throughout the summer, we saw scenes depicting long delays, cancellations, and frustrated passengers unfold at airports across the globe. Staffing challenges, Covid-related issues, and extremely high consumer demand all played a role in the chaos. The fact that many airlines run on outdated technology systems that are siloed across operations and lack powerful analytics tools only makes matters more challenging.

“Some of the technology, software, and systems used today are aged 30-plus years,” said Catalin Sava, IBM’s chief technology officer for travel and transportation.

Even before the pandemic, there was an urgent need for airlines to modernize their technology systems and usher in a new era of efficiency, customer-centric operations, and digital insights. However, industry shifts brought on by the pandemic have demonstrated that doing so is now critical. Airlines are in need of cloud transformation, which can improve everything from daily operations and maintenance challenges to long-term goals like carbon footprint reduction.

React to Market Changes as They Happen

Legacy systems lock airline operations into a near-static profile of capability and scalability — but this pattern is not fit for today’s business environment. As with all digital business, airlines need to have the ability to react to market dynamics in real-time, allowing them to tune their operations to fit demand. With the adoption of cloud native solutions, deployment of new services goes from years to weeks, producing massive development savings and embracing a software development culture built on relevance and customer centricity.

Cloud native solutions enable the shift from capital expenditures to operational expenditures for IT operations and add the ability to dynamically scale, both horizontally and vertically, a company’s IT footprint. This is one of the game changing aspects of cloud native solutions: An organization can use and pay for as much as it needs when it needs it and have full visibility of the costs.

Break Down Silos to Create Better Customer and Partner Outcomes

Individual business units across the airline industry have traditionally relied on decades-old software and systems that may not allow these units to reach their full potential. And even if the individual system succeeds at doing its job, companies often fail to realize the full potential of their operations when pillars across the business can’t communicate with each other.

Airlines must combine and modernize disparate technology platforms to streamline operations and better serve passengers. “A siloed data center — even one that enjoys the benefits of the most modern management and analytics tools — can only deliver operational improvements within the narrow scope of the silo it serves,” said Sava. “Increasingly, individual airlines, as well as the broader industry ecosystem, understand that the improvements that matter most are those found between operational silos,” he continued.

Traffic management solutions offer a salient example. Airline gate operations and departure control systems have an extremely complex job, as they seek to optimize to hit static timetables and take-off targets amid ever-shifting circumstances, all while factoring in the upstream and downstream impacts of their decisions. The underlying system, then, must be built for agility. The more real-world complexity it can account for, the more likely it is to produce optimal outcomes for airline partners, employees, and customers.

Access and Implement New Data Insights

By migrating systems into the cloud and modernizing them through cloud solutions, airlines can also benefit from deeper data insights and analytics that stretch across their entire organization.

For example, take airline maintenance, repair, and overhaul (MRO) — the repair, service, or inspection of an aircraft. Like other large and complex areas of airline operations, airline MRO has traditionally assembled their own data-driven views of the organization. While this information may be rich in detail and highly customized to the needs of the maintenance staff, it rarely — if ever — exists in perfect harmony with the similarly detailed views of other business units, such as reservations or airport operations. Here, cloud solutions offer the solution, connecting each pillar of the organization to a shared base of operational data.

Sharing an operational view reverberates through the organization, empowers employees, and promotes consistency. “Most often, the applications used by front-line staff become far more useful and impactful when they are fed by and interact with the most current and accurate data in the airline. This is why connecting these solutions to the cloud creates profound improvement opportunities to engage employees, as we have seen with Finnair,” said Cormac Walsh, aviation industry head at Nordcloud, an IBM company.

Empowering Digital Transformation the World Over

With cloud solutions, airlines can leverage advanced technology like artificial intelligence and machine learning to vastly improve operations, tackle previously confounding maintenance challenges, and create experiences that earn customers’ business for life. They can also work toward a better tomorrow, keying on long-term goals like carbon footprint reduction by focusing on developing creative, data-based solutions that strike the right notes for customers and shareholders alike.

First, they’ll need to make the most important decision in their enterprise transformation journey: choosing a cloud migration partner. This single choice will have an outsized impact on the cost and timeline of their cloud transformation, the details of which can only become clear once the airline engages a partner.

“Each transformation journey is unique,” said Walsh. “The complexity associated with the volume of applications in scope, the number of associated financial and operating systems included in the transformation, and the degree to which applications moving over to the cloud will be modernized will each factor in. Timelines and investment estimates that don’t include these key inputs are not only useless, but dangerous,” he continued.

Cloud migration and modernization are both a journey and a destination — but getting it right can build a foundation to support the digital transformation that will take airlines into a new era.

Source: Skift

London Heathrow will lift its daily capacity cap by the end of October, unnamed sources have told the Washington Post. The airport has made no official announcement on the issue and was not immediately available for comment.

The cap limiting daily departing passengers to 100,000 is currently in place for the period July 12 to October 29. It will not be extended into the winter season, according to airlines briefed by the airport.

Similar measures to control passenger demand in the face of ground staffing shortages have been implemented at other airports, notably Amsterdam Schiphol in the Netherlands, which has attracted the ire of KLM Royal Dutch Airlines for having extended its capacity cap until the end of March 2023.

“This cap has resulted in fewer last-minute cancellations, better punctuality, and shorter waits for bags,” a spokeswoman for Heathrow told the Washington Post. “Our focus has always been on removing the cap as quickly as possible – but we will only do so if we are confident that adding in more passengers will not erode the service levels that the cap has secured.”

While the seasonal capacity reduction will reportedly finish at the end of October, Heathrow will still have a separate restriction that prevents airlines from making changes or additions at peak periods, people familiar with the plans said. The sources said that a different emergency measure, which can be used to limit capacity for shorter periods, will still be available to the airport in the case of severe disruptions during peak travel periods.

Source: Ch-Aviation