WTTC calls for urgent action on sustainable aviation fuel

Today, the World Travel & Tourism Council (WTTC) is urging governments worldwide to take decisive action in incentivizing the production of Sustainable Aviation Fuel (SAF) and establish ambitious targets to meet the demand.

WTTC emphasizes that without a significant supply of SAF, the aviation industry will struggle to achieve its commitment to reach Net Zero carbon emissions by 2050, as supported by the International Civil Aviation Organization (ICAO) and the industry itself. To attain net zero carbon emissions, the aviation sector aims to:

  1. Maximize emission reductions through the use of SAF, as well as innovative technologies like hydrogen and electric propulsion.
  2. Deploy fuel-efficient aircraft fleets.
  3. Improve operational efficiency, such as in air navigation.
  4. Explore out-of-sector solutions like offsetting or carbon capture.

SAF is expected to play a crucial role in achieving net zero emissions by 2050. However, current production rates fall short of meeting the demand, and prices remain high despite recent increases in production.

WTTC is calling for immediate action, emphasizing that governments’ climate goals, aligned with the Paris Climate Agreement, and their economic growth commitments are at stake, as aviation is essential for tourism, trade, and global connectivity. To address this urgent issue, WTTC urges governments to:

  1. Provide strong incentives, such as tax credits, grants, or financial incentives, to encourage investment in SAF production.
  2. Collaborate with the aviation sector to establish ambitious SAF production targets.
  3. Coordinate actions through ICAO to ensure global uniformity in SAF regulations, sustainability standards, procedures, and organization.
  4. The United States serves as an example of a successful incentive program through the Inflation Reduction Act, which created tax incentives for SAF production.

Julia Simpson, President & CEO of WTTC, emphasizes the need for governments to prioritize sustainable aviation fuel production. She calls for immediate action, as the current production of SAF meets only a fraction of the demand. Simpson emphasizes that financial support and incentives are necessary to bridge the cost disparity between SAF and traditional fossil fuels, and without such targets and incentives, decarbonization of the aviation sector will be
challenging.

The International Air Transport Association (IATA) has also launched a policy, SAF Deployment, which urges governments to facilitate the scaling up of SAF production and promote harmonized policies across countries and industries.

In partnership with ICF, WTTC is launching a white paper titled “Sustainable Aviation Fuels: The Implications & Opportunities for Tourism Destinations.” This publication aims to demystify the impact and benefits of SAF for tourism destinations and outlines three critical actions destinations should take to address the challenge and embrace the opportunities associated with SAF.

SOURCE: Travel News Africa

Kenya Airways receives certification for its pharmaceutical facility

Kenya Airways Cargo, a division of national flag carrier Kenya Airways (KQ), on Thursday received International Air Transport Association (IATA) Centre of Excellence for Independent Validators (CEIV) Pharma certification. This certification of the KQ Pharma Facility confirms the ability of the airline to safely, rapidly and consistently handle time-sensitive, high-value pharmaceuticals that require constant temperature control.

Kenya Airways Cargo, a division of national flag carrier Kenya Airways (KQ), on Thursday received International Air Transport Association (IATA) Centre of Excellence for Independent Validators (CEIV) Pharma certification. This certification of the KQ Pharma Facility confirms the ability of the airline to safely, rapidly and consistently handle time-sensitive, high-value pharmaceuticals that require constant temperature control.

The KQ Pharma Facility is dedicated to the safe handling of pharmaceuticals that require temperature control and it was set up in compliance with the guidelines issued by IATA CEIV and the World Health Organization. It covers an area of about 600 m2, and is fitted with a real-time temperature and humidity monitoring system, which can be accessed on mobile devices. The facility is subdivided into three sections, which are kept at different temperatures. One section, with a capacity of 40 euro-pallets, is kept in a temperature range of +15 °C to +25 °C. The second section is a cold room, kept in the temperature range of +2 °C to + 8 °C; this has a capacity for 22 euro-pallets on the ground, but extra racking can also be provided. The third section is the freezing room, kept at –20 °C, which can accommodate nine euro-pallets but also has additional racking, for loose cargo.

“Pharmaceutical shipments are extremely challenging and necessitate maximum dependability from airlines,” pointed out KQ director of cargo Dick Murianki. “It is critical to maintain the required temperature so that medication can be used as planned after shipping. Being one of the first African airlines to receive IATA’s international certificate is the result of the work we’ve done over the last few years to strengthen our product.”

KQ currently flies to 42 international destinations, of which 35 are in Africa. It is a member of the Sky Team Alliance. The carrier operates a fleet of Boeing 787-8 widebody, and Boeing 737-800 and Embraer E190 narrowbody, airliners, as well as 737-300F dedicated freighter aircraft.

SOURCE: Engineering News

Ethiopian Aviation University To Start Producing Aircraft Components

A first for Africa! Ethiopian Airlines has developed its training academy into a university, offering undergraduate and postgraduate degrees.

Ethiopian Airlines Group remains committed to the development of African aviation. It has trained pilots, cabin crew, and technicians for over 65 years. Now, it is stretching even further to manufacturing aircraft components and training the next generation of aviation professionals.

Last month Ethiopian Airlines (ET) celebrated 77 years of operations in the aviation industry. Its training institution, Ethiopian Aviation Academy (EAA), which is the biggest pilot training center in Africa, has been developed into a fully functional university offering various undergraduate and postgraduate degrees.

More about Ethiopian Aviation University (EAU)

EAA has provided aviation professionals for Africa and the rest of the world for many years. After six decades, it is expanding to meet the future needs of African aviation as an educational wing. Ethiopian Aviation University (EAU) will be an integral part of Ethiopian Airlines Group and the industry.

With its state-of-the-art facilities, EAA has trained pilots for the Boeing 787, B737NG, B737MAX, B767, and Airbus A350, to mention a few. It has over eight modern full-flight and fixed-base simulators for pilot upgrades, transition, and recurrent training. Additionally, it now has facilities for training professionals in different aviation sectors.

The university’s primary purpose is to lead and grow with current technological developments and meet the sophisticated demands of airline operations and airport management. EAU Vice President for Aviation Trainings and Acting President Mr Kassie Yimam said in an interview with Simple Flying;

“When we were dealing with training, we were dealing with competencies to enable people to do some tasks. For example, pilots were meant to fly airplanes effectively and safely, that’s it. Aircraft maintenance technicians are trained to maintain airplanes so they are always airworthy and safe, and they also make preventive maintenance. As time goes on, we need to develop further toward the production and manufacturing of aerospace components, airplane systems, and so on.”

Developing human resources

Ethiopian Airlines attributes its 77 years of excellence to the successful development of its human resources. The academy has been the backbone of its dominance, and to continue on this path, it intends to develop human capital even further.

EAU will introduce undergraduate and postgraduate degrees in addition to its training portfolios. The programs will start in September 2023, while applications are currently open on its website. Students can choose from the following programs:

  • B.Sc. in Aeronautical Engineering: It will be one of the few institutions in Africa to offer an accredited aeronautical engineering degree. The course encompasses designing, developing, and modifying aircraft components and systems.
  • B.Sc. in Aircraft Maintenance Engineering: It is an advanced form of maintenance training it used to provide. This dives deeper into science and engineering, and after five years, graduates will earn an engineering degree and a civil aviation license.
  • B.Sc. in Aviation Management and Operations: This program will have two streams but will be studied as one degree. Toward the program’s conclusion, students will have the option to specialize in airline or airport management.
  • BA in Tourism and Hospitality Management: Travel and tourism is a significant wing of the aviation industry. World air travel is expected to increase demand for tourism and hospitality managers over the next decade.
  • MBA in Aviation Management and M.Sc. in Data Science: The university will offer two postgraduate degrees. Using big data and analytics has become integral to an airline’s operations. EAU will train the next generation of managers and data scientists.

The group is committed to developing aviation in Africa. It will groom talent and professionals within the airline and provide opportunities for citizens around the continent. This will help Ethiopian and its partner airlines as the next generation prepares for innovation. Mr Kassie added;

“We have been operating an airline, and we want to transfer the success to our students. That will help Ethiopian Airlines as well as other partner airlines in Africa. We’re not going to lead this airline forever. We have to develop people who can manage our lead better and bring new ideas. We can be more successful when we teach our experiences, and then they innovate and make it better. So we get better every day. When we teach, we mean it for Africa, not only for Ethiopian Airlines, we cannot grow alone.”

Feeding the production line

Ethiopian Aviation University aims to train competent engineers and aviation professionals that can feed the aerospace manufacturing industry in Africa and elsewhere. The university will enable the aviation sector in Africa to create new products rather than maintain existing ones.

It plans to expand and manufacture aircraft components, systems, and even small aircraft soon. The institution will employ internationally renowned professors to ensure students receive the highest quality of education. There will be a primary and secondary professor to ensure the concepts taught in class are applied well in the field.

Ethiopian Aviation University is one of the few universities with modern aircraft, flight simulators, workshops, airline processes, and procedures in the group to practically demonstrate what has been taught in class.

Partnering with various stakeholders

Ethiopian has partnerships with various airlines and stakeholders across the African continent. EAU is fully owned and operated by Ethiopian Airlines. However, it is open to partnering with other institutions and airlines for the enhancement of the aviation industry in Africa.

The group will be looking for partners in areas where there is potential for development and demand for its products. The African aviation market has almost fully recovered from the COVID-19 pandemic, so great potential is waiting to be unlocked. The acting President added;

“Our development strategy is to partner with African companies, training centers, universities, airlines, airports, and so on. Look, we truly believe in the importance of partnership. So partnering will make all of us better, and it will be a win-win for all partners. So we love to have reliable partners who are serious about the importance of developing human resources for their industry.”

Ethiopian Airlines’ commitment to continental development is unprecedented. It plans almost to double its fleet over the next ten years and vastly expand its global network. The development of Ethiopian Aviation University will be essential to making ET one of the most prominent airline groups in the world.

Source: Simple Flying

IATA announces initiative to support African development

The International Air Transport Association (IATA) is launching an initiative designed to boost social development, improve connectivity, safety and reliability for both passenger travel and air cargo shipping companies in the African region.

Focus Africa


IATA will bring together key people and businesses in a bid to hone in on six critical areas of focus. All will be measured on their progress over the course of what is being called ‘Focus Africa’.

The focus areas are: Safety, Infrastructure, Connectivity, Finance and Distribution, Sustainability and Future Skills.

High costs, poor infrastructure, skills shortages and the slow adoption of global standards all contribute to Africa’s low contribution towards air transport activities.

IATA Director General Willie Walsh said this of the associations plans to roll out the scheme: “Africa accounts for 18% of the global population, but just 2.1% of air transport activities (combined cargo and passenger).”

“Closing that gap, so that Africa can benefit from the connectivity, jobs and growth that aviation enables, is what Focus Africa is all about.”

The current state of Africa’s air travel industry makes for rather stark reading when you see that between 2020-2022 the continents carriers accumulatively lost 3.5 billion dollars, with further losses forecast for 2023 in the region of 213 million dollars.

Walsh: Potential for growth is clear


It is not all negative however, with the African continent’s recovery post-Covid well under way. Air cargo industry levels are 31.4% higher than in 2019, and air passenger travel is operating at 93%, with a full recovery expected by 2024. 

“The limiting factors on Africa’s aviation sector are fixable. The potential for growth is clear. And the economic boost that a more successful African aviation sector will deliver has been witnessed in many economies already.”

” With Focus Africa, stakeholders are uniting to deliver on six critical focus areas that will make a positive difference. We’ll measure success and will need to hold each other accountable for the results,” continued Walsh.

Generating opportunities through partnerships


The air transport industry can play a key role in bringing together people and businesses to create economic development opportunities, which in turn will help contribute towards the UN’s initiative of lifting 50 million Africans’ out of poverty by 2030.

The first female Chair of the IATA Board of Governors, and Chief Executive Officer of RwandAir, Yvonne Makolo believes that Africa has ‘stand out’ potential when it comes to the aviation industry, saying:

“Africa stands out as the region with the greatest potential and opportunity for aviation. The Focus Africa initiative renews IATA’s commitment to supporting aviation on the continent.”

“As the incoming Chair of the IATA Board of Governors, and the first from Africa since 1993, I look forward to ensuring that this initiative gets off to a great start and delivers benefits that are measurable.”

Synergies between businesses’ will prove vital to the success of Focus Africa. The ability to pool resources and expertise, along with time and funding can ensure that the six key areas have the best chance of success.

Focus Africa will officially launch on June 20th – 21st, along with further detail on the schemes partnerships.

Source: Aviation Source News

African Aviation Has Now Recovered To 93% Of Pre-COVID Levels

IATA’s data shows that global air travel has recovered by 85%, while Africa has recovered by about 97%

The International Air Transport Association (IATA) has revealed that the African aviation industry has recovered to 93% of the level seen before the COVID-19 pandemic. Therefore, it is right to focus on the development of the African market.

IATA says that the industry at large is making significant progress and recovering from the effects of the pandemic. After a difficult period (2020-2022), a return to profitability is expected for the global airline industry in 2023. Airlines may start to post small net profits this year, and passenger numbers may return to pre-pandemic levels.

Post-pandemic recovery by region

The situation in Africa is a lot better than the industry overall. However, a lot of the activity is on the international market. Domestic travel is 20%, while international air travel contributes 80%. Cargo demands in Africa significantly exceeded figures in 2020. Passenger figures in most regions have also surpassed pre-pandemic levels.

The positive recovery is not the same across the entire continent. Some regions in Africa are recovering much faster than others. Some regions started to bounce back in 2022, while some are expected to make gains this year, and the rest will be expected to recover over the next two years. The chart below shows the distribution.

The market in full is expected to recover in 2024. We can see that Southern Africa is significantly lagging compared to other regions. Recovery in Central/Western Africa is expected to exceed 2019 figures this year. Air travel in Eastern and Northern Africa might fully return this year and exceed 2019 levels by 2024.

Connectivity around the world

Worldwide, domestic travel has recovered significantly compared to international travel. Indeed, travel restrictions eased domestically far before internationally, allowing traffic to kick off earlier. The other reason is the slow reopening of Asia, but IATA was pleased to say that China has reopened since January.

The entire industry is expected to return to profitability this year. Domestic travel in many countries effectively returns to where we were in 2019, while cargo figures exceed pre-pandemic levels. The pandemic did not significantly affect cargo operations, as airlines transported relief and essential goods worldwide, even increasing freight capacity.

Overall the industry is at 85% recovery, and passengers should expect more connectivity in the following months. As of 2019, North America, Europe, and the Middle East contributed the most to air travel when weighed against population density. The chart below shows pre-pandemic travel for different continents.

We can see that connectivity in Africa is very low. Although it contributes to 18% of the world’s population, the continent contributes 2.1% of global air travel. This is because air connectivity in Africa is minimal. IATA Regional Vice President for Africa and the Middle East said;

“Another challenge facing aviation in Africa that is familiar to everybody here is a lack of connectivity. Travel in Africa is a challenge. Distances that shouldn’t take a few hours can take days simply because the connectivity does not exist. For example, the route between Kigali and Luanda, which currently takes anywhere between nine and 20 hours, would take three hours on a direct flight.”

Africa also faces the challenge of the high cost of operations. The cost of jet fuel is significantly higher than in other markets. The inefficiency of connecting flights also leads to high operating costs. These issues must be addressed before the continent sees a sustainable aviation industry.

Source: Simple Flying

Tanzania and Senegal team up over Airbus engine problems

Air Tanzania and Air Senegal are considering joint action against the engine manufacturers of Airbus A220-300 aircraft, which have remained grounded for the past several months owing to technical problems.

An Air Senegal delegation was in Dar es Salaam this past week for discussions with Air Tanzania officials on how best to take on Pratt & Whitney, the American aerospace company that produces the PW1524G-3 engines used by the planes.

Both national carriers believe that the company is dragging its feet in resolving the longstanding issue of defective engines, leading to mounting losses for the airlines as their A220-300 fleets remain grounded.

According to Air Tanzania CEO Ladislaus Matindi, Airbus A220-300 aircraft problems had been uncovered by all airlines operating the planes worldwide, which in Africa includes EgyptAir.

Apart from engine defects, the shortfalls also include lack of alternative engines and the plane’s body developing rust much sooner than intimated in its Maintenance Planning Document, thus elevating repair and maintenance costs.

Engine design defects

“The PW1524G-3 engines made by Pratt & Whitney for A220-300 planes are supposed to be removed for maintenance after 5,260 landings but due to engine design defects they are removed before even 1,000 landings,” Matindi said.

The two airlines intend to take Pratt & Whitney to task for failure to fulfill its contractual responsibility to supply extra engines in the event of engine failures.

“We have been engaged in amicable negotiations with the company to fix the serious engine problems so that the planes can resume normal flight operations. But if amicable negotiations fail we could resort to legal action,” he said, adding that negotiations also involve compensation for the losses incurred so far, although he did not quantify how much Air Tanzania was losing.

Air Tanzania was the first African carrier to buy the Airbus A220-300 model in 2018 and its current fleet of 12 aircraft includes four of these.

EgyptAir grounded 10 aircraft over similar engine problems.

Source: The East African

Global Air Cargo Declines By 14.9% In January As Africa Records 9.5% Reduction

The International Air Transport Association (IATA), in its report has disclosed that global air demand measured in Cargo Tonne-Kilometers (CTKs), slumped by 14.9 per cent in January 2023, when compared to the same period in 2022.

The association also said that the cargo volume declined among African airlines by 9.5 per cent within the same period.

According to IATA, global demand, fell 14.9 per compared to January 2022 (-16.2 per cent for international operations)

Capacity measured in available Cargo Tonne-Kilometers, (CTK) was up 3.9 per cent compared to January 2022.

This was the first year-on-year growth in capacity since October 2022. 

International cargo capacity increased 1.4 per cent, compared to January, 2022. 

The uptick in ACTKs reflects the strong recovery of belly capacity in passenger airline markets offsetting a decline international capacity offered by dedicated freighters. 

The global new export orders component of the manufacturing PMI, a leading indicator of cargo demand, increased in January for the first time since October 2022.

For major economies, new export orders are growing, and in China and the US, PMI levels are close to the critical 50-mark, indicating that demand for manufactured goods from the world’s two largest economies is stabilising.

Global goods trade decreased by 3 per cent in December, this was the second monthly decline in a row.

The Consumer Price Index for G7 countries decreased from 7.4 per cent in November to 6.7 per cent in January. Inflation in producer (input) prices reduced by 2.2 percentage points to 9.6 per cent in December. 

”With January cargo demand down 14.9 per cent and capacity up 3.9 per cent, 2023 began under some challenging business conditions. That was accompanied by persistent uncertainties, including war in Ukraine, inflation, and labor shortages. But there is solid ground for some cautious optimism about air cargo. 

“Yields remain higher than pre-pandemic. And China’s much faster than expected shift from its zero COVID policy is stabilising production conditions in air cargo’s largest source market. That will give a much-needed demand boost as companies increase their engagement with China,” said Willie Walsh, IATA’s Director-General.

Asia-Pacific airlines saw their air cargo volumes decrease by 19 per cent in January 2023 compared to the same month in 2022. 

This was an improvement in performance compared to December (-21.2 per cent).

Airlines in the region continued to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to the residual effects of COVID restrictions that were imposed by China. 

Additionally, the positioning of the Lunar New Year would have impacted cargo volumes in January. Available capacity in the region increased by 8.8 per cent compared to January 2022.

North American carriers posted an 8.7 per cent decrease in cargo volumes in January 2023 compared to the same month in 2022. 

This was a slight decrease in performance compared to December (-8.5 per cent). Capacity increased 2.3 per cent compared to January 2022.

European carriers saw the weakest performance of all regions with a 20.4 per cent decrease in cargo volumes in January 2023 compared to the same month in 2022. 

This was a decrease in performance compared to December (-19.4 per cent). Airlines in the region continue to be most affected by the war in Ukraine. 

Capacity decreased 9.3 per cent in January 2023 compared to January 2022.

Middle Eastern carriers experienced 11.8 per cent year-on-year decrease in cargo volumes in January 2023. This was an improvement to the previous month (-14.4 per cent).

Capacity increased 9.6 per cent compared to January 2022.

Source: Independent

Aviation Stakeholders to Contribute to Industry Policy Formulation

The Kenya Association of Air Operators (KAAO) Executive Committee hosted the Cabinet Secretary State Department of Transport and Roads Hon. Kipchumba Murkomen and Permanent Secretary Mohammed Daghar to deliberate on improving the partnership between Government and the private sector.

The meeting agreed on the need for industry input in major policy decisions affecting the sector to ensure there is a win-win outcome that supports growth and eliminates challenges bedeviling the industry.

This includes the involvement of the association in the development of the National Aviation Policy which is set to set the tone for Kenya as an integrated aviation hub to cater for all operators in the region including commercial/private/recreational air operators, approved training organizations (ATOs), approved maintenance organizations (AMOs), hot air balloon operators, and remotely piloted aircraft systems (RPAS) operators.

“The aviation industry has immense potential which, if exhaustively harnessed, will make Kenya an aviation hub and a force in the global market. We particularly recognize the important role the aviation sector plays in the tourism and horticulture sectors hence the need for an all stakeholder-led approach in policy making and infrastructure development prioritization,” CS Murkomen said in response to issues raised by KAAO.

KAAO also reiterated that the increasing number of taxes is negatively impacting the aviation sector in Kenya with the country standing out as the only State regionally and globally levying several taxes on aircraft, spare parts, and aviation fuel. According to KAAO Chief Executive Officer Liz Aluvanze such measures were making the local industry uncompetitive and unsustainable amid a surge in global and regional competition.

“This has led to a worrying decline in the development and growth of the sector resulting in job losses, migration of maintenance activities to neighbouring states, a decline of Kenya as a regional hub and overall decrease in revenue for the operators and government.”

KAAO also proposed that the government should prioritise the development of strategic airports and aerodromes based on demand and revenue generation channels to make them sustainable.

The industry lobby group also called for improvement of infrastructure in airports around the country including expansion of runways to ease congestion, new terminal buildings, reconstruction of pavements and aeronautical ground lighting, and development of parking silos and business parks. KAAO says this will help secure existing businesses and enable them to grow further,

“We are glad that we have open communication channels between KAAO and the Government. We purpose to cultivate a symbiotic relationship in order to achieve a safe, efficient, sustainable, and economically viable aviation industry,” She added.

Source: Africa Science News

Experts Raise Concern Over Foreign Airlines’ Inability to Repatriate Funds From Nigeria

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

Middle East Set to Be One of the Fastest-Growing Airline Markets

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 longJeddah 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