Air Tanzania Locks Eyes on Global Reach

Air Tanzania has expressed strong interests in expanding both its continental and international reach within the upcoming year. The State run airline is primarily focused on flying to the two biggest countries in West Africa, Ghana and Nigeria, as well as the largest airport in the United Kingdom.

The Wings of Kilimanjaro

In an announcement to reporters this Monday, Air Tanzania’s Managing Director Ladislaus Matindi stated that the airline would be launching direct flights to Ghana, Nigeria, the Democratic Republic of Congo and London, Heathrow by 2023.

The expansion goes hand-in-hand with other airline modifications and improvements, such as punctuality and flight reliability – in an effort to increase passenger satisfaction.

The widening of the network actually comes as part of ‘phase four and five’ of Air Tanzania’s expansion plan, originally laid out in 2019 by Matindi.

“We have a plan to expand in three phases; the first, within Tanzania to capture the domestic market and expand domestic destinations..and the third phase, internationally to include destinations like Mumbai and Guangzhou”, Matindi said.

He further remarked,

“Our plan has the 4th and 5th phases where we intend to have flights to West African cities of Lagos and Accra by the end of 2022. This is when we expect to have more planes.”

Already serving 12 domestic locations and almost ten international ones, such as Harare in Zimbabwe, Lusaka and Ndola in Zambia, Nairobi in Kenya, Moroni in Comoros, Mumbai in India and Guangzhou in China, making Air Tanzania well on schedule.

Realities of the situation

Having more destinations to offer its passengers and bringing in potentially new tourists and travellers to the country will undoubtedly have a profoundly positive impact on both Air Tanzania and the nation.

Additionally, trade with West Africa is expected to improve with these new developments and strengthen economic ties. There appears to also be an interest in developing the Democratic Republic of Congo’s dire economic state through increased travel and communication.

However, as some have noted, its ambitions to reach Europe, while seeking to be beneficial, may cause greater financial losses for the airline. In 2019, Air Tanzania secured three spots at Heathrow, but plans fell apart within a year, partially due to the pandemic.

British Airways also attempted to create a connection between the two nations back in 2013, however stopped flying to the country in 2015. To this day, Dar es Salaam remains one of London’s largest untapped markets.

An attempt to fly to the UK would be met with steep competition with Kenyan Airways and Ethiopian Airlines, who both have strong established relationships with Western countries, and significantly larger fleets with more frequent fliers.

Not to mention, Air Tanzania, much like the rest of the aviation world has been making huge losses over the past few years. The plans to fund these endeavours financially are unclear and require greater, more reliable assurances from management.

Too ambitious?

Having a relatively small fleet and a less prominent presence in East Africa compared to its neighbours in Kenya and Ethiopia, Air Tanzania’s plans have widely been discredited as ‘too ambitious’. The airline is also said to only have around four A220-300s, two B737 MAXs 9s, one B767-300F and five DHC-9-Q400s.

On a more positive note, the airline has shown a decent budget for the acquisition of more planes, and a consistent effort at improving the quality of their services and business practices.

With what appears to be a carefully curated development schedule, and a keen leadership body and staff, it would be criminal to not let Air Tanzania dream and dream big. What do you think? Leave a comment below.

Source: Travel Radar

Post-Covid restart offers African airlines a new chance

Nairobi. African airline operators are going back to the drawing board.

They are mapping sustainability plans including fostering cross-market collaborations to rev up the continent’s intra-African and grow their global air traffic market share.

Africa’s aviation operators and experts have retreated to the drawing board to analyse the continent’s falling global air traffic share as rising passenger demand begins to lift airlines performance closer to pre-pandemic levels.

The establishment of Africa’s first ‘aviation laboratory’ and the start of implementation of a strategic alliance between Kenya’s and South Africa’s national carriers in July are the latest indications of an industry keen on addressing bottlenecks to its growth and expansion, competitiveness and sustainability.

“The overall objective of the laboratory was to address the root cause of challenges facing the air transport industry in Africa and develop relevant solutions to revamp the sector,” said African Airlines Association (AFRAA) secretary general Abdérahmane Berthé.

High operations and maintenance costs, slow implementation of a Single Africa Air transport market and fewer partnerships between airlines, hospitality and tourism bodies have been identified as some of key issues behind the dwindling fortunes of African airlines over the last four decades.

Before the pandemic, Africa’s share of global air traffic had already declined by a percentage point to 2.5 percent compared to 3.5 percent in early 1980s, according to Afraa. Covid-19 further aggravated the continent’s air transport sector pushing its traffic market share below two percent.

“This marginalisation trend is a strong wake-up call to all stakeholders to take necessary actions,” said Berthé.

Afraa, a 44-member airline body accounting for 85 percent of total international traffic carried by continent’s airlines, is now spearheading the continent’s first-ever ‘aviation laboratory,’ tasked with developing roadmaps for the sustainability of the air transport sector in Africa.

Some of the initial commitments already made by key stakeholders include allowing more airlines to fly between two third-party countries to boost intra-African connectivity and developing guidelines and economic regulatory framework for rationalization of taxes, charges, and fees.

The new roadmap is also working on reducing airfares, taxes on fuel and push for abolishment of custom duties on spare parts and aircraft to boost trade and tourism on the continent.

Other key interventions proposed include automation of flight permit acquisition processes across civil aviation authorities and bolstering operation efficiency in African airspace to attain productivity gains for airlines and air navigation service providers.

A multi-sectoral steering committee drawing participants from airports, airlines, tourism boards, civil aviation authorities, continental financiers, AfCFTA Secretariat and independent industry experts will review the roadmap before being tabled for adoption by AU Policy Organs.

While deliberations goes on, a strategic pact between Kenya Airways and South African Airways signed in 2021 has begun showing the impending benefits of close cooperation as demand for air travel rebounds.

Last month the two airlines struck a codeshare agreement- opening up more routes for each operator and offering passengers more options and seamless travel across the continent.

Beyond opening key routes operated by these carriers in Southern and Eastern Africa, the two airlines are evaluating their codeshare partnership to add new destinations within Africa including Tanzania Mainland, Zanzibar, Kilimanjaro in Tanzania, Juba in South Sudan, Douala in Cameroon, Lusaka in Zambia, Ghana, and Nigeria.

“The additional destinations we believe will offer better customer journey thanks to the number of frequencies and connections created as well as many opportunities for trade and tourism,” said Kenya Airways chief executive officer Allan Kilavuka.

According to the International Air Transport Association (IATA) data, the demand for air travel surged in June, with airlines based in Africa recording a doubling of international traffic over the year to June, with an increase of 103.6 percent.

“Demand for air travel remains strong. After two years of lockdowns and border restrictions people are taking advantage of the freedom to travel wherever they can,” said IATA’s director general Willie Walsh.

With the continent’s international traffic now around 35 percent below 2019 level, the performance of international traffic between Africa and neighbouring regions is approaching its pre-pandemic levels.

According to IATA, traffic between Africa and Europe is currently 4.6 percent below June 2019 while that of Africa and Middle East is 10.4 percent below 2019 levels.

Source: The Citizen

Dubai airport passenger number triples to 14.2 million in Q2, up 230% on year

Despite a 45-day shutdown of one of Dubai International Airport’s two runways for maintenance, the number of travellers utilising the airport nearly quadrupled during the second quarter. The world’s busiest international airport handled 14.2 million passengers in the three months to the end of June, up almost 191 percent year on year, continuing growth for nine straight quarters since the start of the coronavirus epidemic, state-owned operator Dubai Airports said on Wednesday.

The airport’s resurgence, which serves as the hub for long-haul carrier Emirates, coincides with a robust rebound in foreign traffic. According to the International Air Transport Association (IATA), international traffic increased by approximately 230 percent year on year in June, aided by the relaxation of travel restrictions in most Asia-Pacific regions. Passenger volumes more than doubled to 27.9 million in the first half of the year, according to Dubai Airports, compared to the same period last year. This is 1.2 million fewer than the previous year’s total annual traffic at the airport.

The airport exceeded 67.5 percent of its pre-pandemic passenger throughput in the first half of 2019. Despite “unprecedented challenges” and “macroeconomic factors” affecting the global economy and tourism sector, Dubai’s Department of Economy and Tourism (DET) reported 7.12 million international visitors in the first half of 2022, nearly three times the 2.52 million recorded in the same period the previous year.

Dubai Airports now anticipates 62.4 million passengers in 2022, up from an earlier figure of 58.3 million in May. DXB remained India’s leading source country in terms of passenger counts, with traffic hitting 4 million passengers in the first half of the year, fueled mostly by key metropolitan destinations such as Mumbai, Delhi, and Hyderabad. Saudi Arabia came in second with 2 million passengers, followed by the United Kingdom with 1.9 million.

The top three destinations were London (1.3 million passengers), Riyadh (910,000 passengers), and Mumbai (760,000 passengers). Despite the disruption, huge queues, and delayed luggage at major European and American airports, DXB stated that 96% of travelers waited less than five minutes at the exit passport control.

The average wait time at the security checkpoint on departure was less than three minutes for 97 percent of all passengers. Cargo volumes for the first six months of the year declined roughly 19% year on year to 910,075 tonnes in the air freight market. According to Dubai Airports, DXB’s cargo traffic suffered during the second quarter as major freight operators returned to Dubai World Central (DWC) in March.

Furthermore, overall cargo volumes were impacted by a lower capacity during the northern runway restoration operation, which ran from May 9 to June 22, because a large amount of cargo traffic at DXB is carried in the belly-hold of passenger aircraft, according to the report.

Source: WION

On The Rise: Kenya Airways Ups New York Flights To Daily Frequency

KQ JFK

Kenya Airways will service Nairobi to New York JFK 1x daily next summer, although much could change by then. It comes soon after the SkyTeam airline expanded its codeshare destinations with Delta, although the additions will have relatively little impact on passenger traffic. JFK-Nairobi uses B787-8s and is at the limit of the variant’s real-world range, with what seems to be a payload restriction to the USA.

What’s happening?

According to Kenya Airways’ booking engine, the carrier will grow JFK service to 1x daily from June 19th next year. While the 7,360-mile (11,844km) route currently operates 3x weekly, OAG shows that it was due to be 5x weekly next summer. 1x daily is a significant frequency on the route, although it’ll only be during the summer peak. It is scheduled as follows, with all times local:

  • Nairobi to JFK: KQ2, 23:35-07:35+1 (15h block time)
  • JFK to Nairobi: KQ3, 13:45-10:30+1 (13h 45m)

The African carrier has one widebody type: the B787-8. It has nine of them, each with 234 seats. They have the same config: 30 fully flat business seats and 204 seats in economy. Just 13% of its seats are premium, not much for the cabin that makes a crucial difference in long-haul route performance.

A prestige route

The very long route to JFK is undoubtedly for prestige reasons, as well as helping to grow Kenya tourism, and is heavily loss-making. Six months after the route began, Kenya Airways’ former CEO, Sebastian Mikos, said that:

“I do not consider it to be a lucrative route. There is nothing lucrative about flying to New York.”

He added that JFK is “necessary but difficult,” mainly for passenger feed reasons and to be ‘seen’ differently. The launch of JFK in October 2018 came amid a cost-cutting and rationalization program in an attempt to stave off bankruptcy, further emphasizing the route’s non-commercial objectives.

Yes, all hub-feeding airlines have loss-making routes in themselves, which wouldn’t, or shouldn’t, be operated if only about that one route, but they make a significant network contribution. Booking data shows that approximately 35% of Kenya Airways’ JFK passengers transited Nairobi in 2019. Does that justify service, especially given the carrier’s perennial on-the-brink-of-bankruptcy position?

A 76.5% seat load factor

According to the US Department of Transportation, Kenya Airways’ JFK service achieved a seat load factor (SLF) of 76.5% in 2019, with 104,544 passengers carried. (Remember, SLF is just one element of performance.) The pandemic meant it fell to 23,240 passengers (65.6%) in 2020 and 31,758 last year (63.4%).

Analyzing booking data shows that approximately 36% of passengers were point-to-point; they only traveled between JFK and Nairobi. A further 35% transited over Nairobi to other destinations, with the top five Kilimanjaro, Lagos (really!), Entebbe, Johannesburg, and Cape Town. Some 19% of passengers connected to partners over JFK, and about 9% ‘bridged’ both JFK and Nairobi. In all, nearly two-thirds of passengers transited.

Source: Simple Flying

Africa’s highest peak gets fast internet

Mount Kilimanjaro

Climbers ascending Mount Kilimanjaro can now document their ascents in real-time on Instagram, following a recent move by Tanzanian authorities to install high-speed internet around the mountain’s slopes.

Mount Kilimanjaro is in northern Tanzania and is Africa’s highest peak standing at over 19,000 feet (nearly 5,900 meters).

The broadband service was set up by the Tanzania Telecommunications Corporation and launched Tuesday, the information ministry said.

“Today Up on Mount Kilimanjaro: I am hoisting high-speed INTERNET COMMUNICATIONS (BROADBAND) on the ROOF OF AFRICA. Tourists can now communicate worldwide from the summit of Mount Kilimanjaro. WE ARE GOING TO UHURU PEAK 5880 Meters Above Sea Level!” tweeted Nape Moses Nnauye, Tanzania’s minister of information, communication and information technology, .

Nnauye said it was unsafe for tourists to navigate the mountain without an internet connection.

Technology now plays a huge role in mountaineering.

Beyond the thrill of uploading ascents on social media in real-time, experts have found internet connectivity to be useful in improving the awareness of climbers and helping to guide their climbs.

Climbers on Mount Everest, the world’s highest mountain, already have wi-fi services at base camp.

“Previously, it was a bit dangerous for visitors and porters who had to operate without internet” on Mount Kilimanjaro, Nnauye said at the Tuesday launch, adding that internet service will be extended to the summit of the mountain by the end of the year, AFP reported

Kilimanjaro National Park, which houses the huge peak, is a protected UNESCO World Heritage site and provides a part of Tanzania’s tourism revenue.

Thousands of adventurers climb Kilimanjaro every year with many attempting to reach the summit, according to a popular guide service.

The deployment of internet services on Mount Kilimanjaro was hailed by Chinese ambassador to Tanzania Chen Mingjian.

China is jointly financing efforts by the Tanzanian government to provide wider access to ICT infrastructure.

Source: CNN Travel

Taiwan Tensions Could Drive Up Travel Costs Significantly, CWT Warns

Taiwan Tensions

Geopolitical uncertainties are singled out in the latest Global Business Travel Forecast, which underscores the volatility the corporate travel industry is experiencing, and perhaps the pointlessness of trying to predict prices in the first place.

While travel prices may not spiral out of control as much as they did in 2022, many factors that impact costs will simply remain out of the hands of travel managers.

Next year could see even more price fluctuations due to geopolitical events, a new report from corporate travel agency CWT and the Global Business Travel Association has warned.

The pair projected back in November 2021 that air fares would rise 3.4 percent in 2022, with that estimate published just months before Russia invaded Ukraine — an event that contributed to jet fuel price increases that were handed down to passengers.

However, the actual rise of the average air fare is expected to be 48.5 percent for 2022, CWT and the association have stated in this year’s joint Global Business Travel Forecast, published Wednesday.

“There are three main forces exerting pressure on the economy, and conversely, the business travel industry,” the report said. “Russia’s invasion of Ukraine, coupled with other geopolitical uncertainties; inflationary pressures that are pushing costs higher; and the risk of further Covid outbreaks that could restrict business travel.”

Speaking to Skift ahead of the report’s publication, one senior exec warned more implicitly that travel managers should keep track of the rising tension between China and Taiwan. Taiwan’s foreign minister on Tuesday said China’s recent military maneuvers were a game-plan to prepare for an invasion.

“As well as the war in Ukraine, you need to keep an eye on what’s happening in Taiwan with China,” said Richard Johnson, senior director, CWT Solutions Group. “Drawing parallels with what’s happening in Ukraine and Russia at the moment, if there were to be an invasion of Taiwan, that could potentially impact demand for inbound and outbound business travel to and from China.”

One knock-on effect is that airlines would see demand reduced, particularly if there was an embargo, as well as safety risks.

With prices reduced in certain markets, Johnson said vendors would need to recoup their losses.

“You might start to see an offsetting of the reduced demand in such a massive economy as China, by prices increasing elsewhere,” he added. “It’s a difficult one to predict.”

Air fares are predicted to rise 8.4 percent in 2023, according to the Global Business Travel Association.

Meanwhile, hotel prices are expected to rise 18.5 percent in 2022, up to $147 per night — a notable difference on the original 13 percent prediction the annual report made in November last year.

They’re forecast to go up by a further 8.2 percent in 2023. “Hotel prices have already eclipsed 2019 levels in some areas and will do so globally by 2023,” the report said.

Source: Skift

How International Carriers Circumvent Nigerian Airlines with Visa Restriction

Nigerian airlines

Over the years, Nigerian airlines have failed to successfully operate international routes. Many international carriers, who describe the Nigerian routes as very lucrative, deploy many strategies, including visa denial, to short-change Nigerian carriers, but Nigerians are the enablers of this perfidy.

On Monday Nigeria’s major carrier, Air Peace reported that it would suspend its flight service to Johannesburg due to high cost of aviation fuel and the inability of Nigerians to secure visa to South Africa.

The airline explained in a statement that due to the turbulent times the aviation industry was experiencing with Jet A1 fuel increases, scarcity of forex and a delay in visa issuance for South African travel passengers, it had to stop the service.

Over the years Nigeria always have stormy relationship with South Africa in terms of visa. Even when the country’s tourism board spends huge money marketing tourism destinations in Nigeria, Nigerians always face hiccups obtaining visa to that country.

The latest issue concerning visa, THISDAY learnt, has to do with South Africa Airways. The national carrier started operation to Lagos, one of its lucrative international routes, last year and has been operating direct flight between the two countries with Air Peace. Air Peace started flights to Johannesburg in December 2020.

With difficulty in obtaining visa to South Africa, many Nigerians who booked flights with Air Peace would not be able to travel and that is the dilemma they face currently.

THISDAY learnt that Air Peace approached South Africa embassy in Nigeria and pleaded that they should relax their restrictions, but the embassy had not responded. An insider and tourism expert told THISDAY that while South African companies in Nigeria might have risen to 300, most of them monopolies, more Nigerians travel to South Africa because what Nigeria exports are human resources (it is reported that two Nigerian medical doctors leave for the UK everyday). So there are more Nigerians that travel to South Africa than South Africans that travel to Nigeria. Since South Africa Airways started operating to Nigeria, most South Africans travel with the airline and many of them, being top officials of these blue-chip companies in Nigeria travel business class. So even without high load factor at the back of the cabin, the airline earns good revenue from the operations.

But the many Nigerians who travel to South Africa are go-getters who fly largely economy class and with loyalty to their own carrier would like to patronise Air Peace. These are the people that are stopped by visa restrictions.

“They use visa restriction, airport protocol (immigration and flight scheduling) to make you uncompetitive. Now, a lot of people who booked Air Peace flights are moving their passengers to South Africa Airways. Nigeria loses again. Nigeria has no cooperate products to export; just our Dangote and human resources. Any other thing we export they dictate against our own benefit. So what Nigeria should do is to protect her citizens. Like what happened in Namibia. When Namibian authorities beat up Nigerian woman, Nigeria stopped issuing visa to Namibians and that was what killed Air Namibia flight to Nigeria,” the expert said.

Punitive Measures

The expert was also of the view that since what Nigeria largely exports is its human resources; the federal government should take decisive action to protect that “product.”

Recently the Chairman/CEO of Nigerian in Diaspora Commission, Abike Dabiri confirmed in a television interview that the United Arab Emirates (UAE) has put restrictions on visa issuance; that any male Nigerian from 30 years or below would find it very difficult to obtain visa because of the illicit activities young Nigerians engaged in the Emirates in the past. She cited the issue of ATM Machine and engagement in cult activities by some Nigerians. This obnoxious act, she noted, damage the image of Nigeria abroad and this makes it difficult for Nigerians to obtain visa, including highly skilled and highly disciplined Nigerians who are the majority that travel abroad to earn a living.

So what Nigeria should do is to punish anyone who damages the image of Nigeria abroad by disciplining the person whenever he returns to Nigeria. This would show that Nigeria as a government does not support the nefarious activities of its citizens.

“We should also check the excesses of Nigerians who travel abroad to damage our image by committing crimes by punishing them even when they are caught, tried and imprisoned over there. We should have it as national policy that when they come back to Nigeria, we throw them back into jail. This way we make them know that we cannot tolerate their criminal activities when they travel abroad and that will also make these countries know we don’t indulge our citizens who break the law outside our country,” the expert told THISDAY.

THISDAY also learnt from an official of Arik Air, which operated to South Africa for years; that one of the key issues South African embassy use to deny Nigerians visa is the compulsory vaccinations against yellow fever (international certificate of vaccination or prophylaxis). The official alleged that Port Health issues expired batch of the vaccination, and this is rejected at the South Africa embassy. Although the embassy would not complain about this but when such issue arises it would deny the applicant visa. A journalist who had had similar experience told THISDAY that his passport was taken from VSF Global (the agency that provides visa service in Nigeria for many countries) and taken to South Africa embassy.

When he got there after his passport had been kept there for two months, he was informed that his vaccination card was not okay; that he had to update the vaccination.

“I just made enquiries and gathered that the batch of vaccination, which Port Health offers may have expired or does not meet the latest requirements, so they always query it at the South Africa embassy. They say even when the batch expires, they still issue it. When we were operating to South Africa, we had to buy new vaccine for the Port Health. We were directed to destroy existing ones and we bought a new batch. Of course, it was believed that it was government that bought is, but we did,” the official said.

However, Port Health had denied that they administer expired vaccine to Nigerians. An official of Port Health in Lagos said that all vaccines meet standard regulations, and none has been compromised in any way.

“Let them not use that as an excuse. They don’t like giving Nigerians visa; yet they like making money from Nigeria,” the official told THISDAY.

Reciprocity

Senior official of the Nigerian Immigration Service (NIS) told THISDAY that the federal government should be notified of the antics of South African embassy because “visa policy is based on reciprocity.”

“It is unfortunate because we even give them visa on arrival here and they don’t give to us. It is very difficult to get South Africa visa. They have not been given us visa for a long time. Like Canada, they can hold back your passport as long as possible without answering you. I learnt that some Nigerians go to Ghana to obtain their visa but they went to Ghana to stop it. So it is the duty of Nigeria to also block them. The unfairness is terrible,” he said.

This could be described as familiar terrain because in 2012 there was diplomatic face-off between the federal government of Nigeria and South Africa following the deportation from South Africa of 125 Nigerians, including a Senator.

Arik Air and South African Airways flights were deported on arrival in Johannesburg, allegedly because they were carrying fake yellow fever vaccine cards. This action, which was described as a “harsh and unfriendly treatment” by most Nigerians, sparked off some retaliatory actions by Nigerian government. In apparent retaliation to the treatment, 28 South Africans who arrived Nigeria the following Monday were deported back to South Africa and the federal government threatened to go tough on South African companies operating in Nigeria.

This was done by the fearless Foreign Affairs Minister, the late Olugbenga Ashiru, who was also the former High Commissioner to South Africa who explained that the South Africans were deported from Lagos because of irregular travel documents, adding that this was only the beginning of retaliatory moves.

Ashiru said then that the federal government would soon sanction South African firms for bringing half-baked graduates to occupy positions that could be occupied by Nigerians. He added that Nigeria had asked the South African government to apologise and pay compensation to the affected travellers and Arik Air.

Also, the then Minister of Health, Prof. Onyebuchi Chukwu, said that none of the deported Nigerians was in possession of fake yellow fever cards as alleged by the South African authorities. He also disclosed that classification by the World Health Organisation indicates that Nigeria was one of the 44 countries with no risk of exposure to the yellow fever virus. However, the Health Minister added that the last confirmed case of yellow fever in Nigeria was in 1995 and that Nigeria was not at risk of a yellow fever outbreak.

According to him, the Port Health Services of the Ministry issued Yellow Fever cards and vaccines at all local and international airports, land borders and seaports in the country.

Insider Jobs

Industry analysts agree that there are always efforts to frustrate Nigerian airlines from operating international routes, but the foreign airlines and their host countries can only share the blame. Nigerian system and its citizens, especially government officials, contribute significantly to the inability of Nigerian carriers to successfully operate international destinations.

THISDAY authoritatively learnt that some foreign carriers pay some top officials in government up to $5 per passenger taken out of Nigeria. Informed industry source told THISDAY that in 2010-12 it used to be $3 per passenger but it has now risen to $5. Besides, some top officials in the Ministry of Aviation are allegedly on the payroll of the airlines.

“So, this is a case of what comes straight to you in form of cash and trying to protect your own airline, which will give you nothing in return. When you retire you are forgotten. The Nigerian system has nothing for you beyond the period you are in power or in authority so you use every opportunity your position offers you to feather your nests,” one industry insider told THISDAY.

Informed source also told THISDAY that UAE authority was aghast when the federal government fought for Air Peace when the Nigerian carrier was denied access to operate to the Emirates. To them, that was unusual because in the past, the Nigerian carrier was left in the lurch.

“I heard that they are waiting for this government to go before the will launch attack on the Nigerian airline. They also said that they know where the fight came from,” a highly placed Nigerian told THISDAY.

In 2013 Arik Air wanted to fly to Brazil and Rio de Janeiro-based Gol (Gol Linhas Aéreas Inteligentes S.A) was to reciprocate the flight in the Bilateral Air Service Agreement (BASA) with Nigeria. THISDAY learnt that it didn’t take the reluctant Gol (which was not even enthusiastic about international operations then) time to get all the approvals from Nigeria, while Brazil was extremely reluctant to approve Arik Air flight operations to the South American country.

“It is always easy getting these things from Nigeria because Nigerian officials are guided by what they can get; not how to protect their country. The corruption is enormous. Some of these foreign companies put Nigerians as their directors, so when you invite them for negotiations, they will send their Nigerian representatives and you talk as brothers, you know what I mean,” a source also told THISDAY.

Meanwhile, after the announcement of suspension of Air Peace flight operations to Johannesburg, South Africa Airways has issued a notice that buying its tickets from outside Nigeria must be in dollars. This is to restrict its exposure to the foreign airlines blocked funds in Nigeria and now that it enjoys a monopoly on the route, the new rule must be strictly adhered to.

Source: This Day

Business travel prices set to surge to pre-Covid levels in 2023

Business travel prices set to continue rising

Global travel prices are forecast to continue rising in the remaining months of 2022 and throughout 2023, a report released on Wednesday said.

Rising fuel prices, labour shortages and inflationary pressures on raw material costs are the main drivers of expected price increases, according to the Global Business Travel Forecast 2023.

Prices have risen across all regions in most spending categories, driven by pent-up demand, the desire to build company culture and an uncertain economic outlook.

Air fares have seen a particularly marked post-pandemic upwards shift.

Business travel flight prices fell more than 12 per cent in 2020 from 2019, followed by an additional 26 per cent decline in 2021.

Economy ticket prices fell more than 24 per cent from 2019 to 2021, while premium tickets fell 33 per cent. Prices are expected to increase by 48.5 per cent in 2022, but even with this large increase, prices are expected to remain below pre-pandemic levels until 2023.

After a 48.5 per cent increase in 2022, prices are expected to increase by 8.4 per cent in 2023.

Increased demand and continued price increases for jet fuel which have seen prices more than double in some markets to $160 dollars per barrel, according to S&P Global, are putting upwards pressure on ticket prices.

The overall cost per attendee for meetings and events in 2022 is expected to be about 25 per cent higher than in 2019 and is projected to increase by a further 7 per cent in 2023.

“Demand for business travel and meetings is back with a vengeance, there’s absolutely no doubt about that.” said Patrick Andersen, chief executive of travel management firm CWT which contributed to the report.

“Labour shortages in the travel and hospitality industry, rising commodity prices and greater awareness of responsible travel are all impacting services, but forecast prices are broadly [in line] with 2019.”

Hotel prices are also on the rise after falling 13.3 per cent in 2020 from 2019 and another 9.5 per cent in 2021. The report expects them to rise 18.5 per cent in 2022, followed by an 8.2 per cent increase in 2023.

Hotel prices have already eclipsed 2019 levels in areas such as Europe, Middle East and Africa, and North America — and are expected to do so globally by 2023.

Hotel rate increases were initially driven by strong leisure travel in 2021, but group travel for meetings and corporate events is improving and temporary business travel is picking up a healthy pace, putting further pressure on average daily hotel rates.

An integral part of many trips abroad are car rentals, and after falling 2.5 per cent in 2020 before rising 5.1 per cent in 2021, prices are expected to rise 7.3 per cent in 2022 and to climb a further 6.8 per cent in 2023.

With the automotive industry unable to produce cars at the volume it did before the pandemic — largely due to global supply chain issues — rental agencies are back to buying used vehicles to increase fleet size and are keeping their vehicles for longer periods.

Some agencies are also buying vehicles from carmakers outside of their historically supported brands.

Source: The National

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

Tim Clark

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

‘Open fan’ engine

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

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

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

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

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

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

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

It will be trialed on an A380 test plane.

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

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

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

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

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

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

Looking to the future

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

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

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

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

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

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

However, Clark will not be moved.

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

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

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

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

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

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

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

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

Source: CNN

Dubai firmly on course to achieve tourism goals

Dubai

Dubai attracted 7.12 million international overnight visitors between January and June 2022, recording more than 183% growth in visitors compared to the 2.52 million tourists who visited Dubai during the same period in 2021, according to latest data from Dubai’s Department of Economy and Tourism (DET).

This positive trend in H1 2022 places the city firmly on track to achieve its tourism goals for 2022 and beyond, and further reinforces its position as an international destination of choice.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said: “The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the city of the future and the world’s best place to live, work and invest in has resulted in a resurgence of Dubai’s tourism sector. The growth in tourists reflects the resilience and dynamism of the emirate’s economy. His Highness’s vision has helped Dubai create a strong and stable economic foundation and a dynamic business ecosystem, enabling it to become a leading global hub for diverse sectors. The rapid rise in international tourist arrivals puts Dubai on track to achieve its ambitious target of becoming the world’s most visited destination. In the years ahead, Dubai will continue to develop itself further as a destination that offers compelling value to international travellers.”

The number of tourists recorded in H1 2022 was close to the numbers achieved in the first six months of 2019, which saw 8.36 million tourists arriving in Dubai. The emirate’s ability to quickly return to near pre-pandemic tourism levels is even more remarkable given the impact of unprecedented challenges and other macroeconomic factors on the global economy and tourism sector.

Regional market share

From a regional perspective, Western Europe accounted for a significant share of tourist arrivals, comprising 22% of total international visitors in the first six months of 2022. MENA and GCC continued to make an impact, collectively contributing 34% of total international visitors and highlighting Dubai’s strong appeal to visitors from surrounding markets as a trusted and preferred destination. These regions were followed closely by South Asia with a share of 16% and Russia, CIS and Eastern Europe together accounting for 11% of total visitors in H1 2022.

The wide geographic spread reflects Dubai’s diversified strategy aimed at driving traffic from a broad spectrum of countries and visitor segments, mitigating the risks associated with over-reliance on any one region, and underscoring the success of destination marketing campaigns delivering customized messaging across specialized audience-specific platforms.

World’s highest hotel occupancy levels

The wide range of hotel establishments in Dubai presented yet another stellar performance across all hospitality metrics during the first half of 2022.

Average occupancy for the hotel sector between January and June 2022 stood at 74%, one of the world’s highest, compared to 62% in H1 2021, a difference of 12 percentage points and just short of the 76% occupancy level registered during the pre-pandemic period of H1 2019.

This is particularly noteworthy as it was achieved in spite of a +19% increase in room capacity over the same period in 2019. Dubai’s hotel inventory by the end of June 2022 comprised 140,778 rooms open at 773 hotel establishments, compared to 118,345 rooms available at the end of June 2019 across 714 establishments. Meanwhile, the total number of hotels in H1 2022 marked an 8% growth over H1 2021, highlighting continued strong investor confidence in Dubai’s tourism sector.

The hotel sector outperformed pre-pandemic levels across all other key measurements – Occupied Room Nights, Average Daily Rate (ADR) and Revenue per Available Room (RevPAR). Dubai hotel establishments delivered a combined 18.47million occupied room nights during the first six months of the year, a +30.4% YoY growth, and a +18% increase over the pre-pandemic period of H1 2019, which yielded 15.71 million occupied room nights.

In addition, the ADR of AED567 in the first half of the year surpassed the ADRs for both H1 2021 (AED382) and 2019 (AED444), with 48.5% and 28% YoY growth, respectively. The robust performance of the hotel sector is also evident in RevPAR growth – a surge of over 76% compared to the first six months of 2021 (AED417 v AED237) and an increase of 24% over the pre-pandemic period in 2019 (RevPAR of AED336).

According to hotel analytics firm STR, Dubai ranks No.3 globally on RevPAR (US$147), after Paris (US$195) and New York (US$172).

Dubai’s enduring global appeal

The latest data demonstrate Dubai’s enduring appeal as a must-visit destination, further validating Dubai’s ranking as the No.1 global destination in Tripadvisor Travellers’ Choice Awards 2022. It also remains one of the most sought-after cities for international travel, business and events at a time when the majority of global destinations have reopened for tourism.

The highly encouraging industry performance is primarily attributed to the hugely successful six-month long Expo 2020 Dubai, which attracted over 24 million visits by the time it concluded on 31 March this year, as well as the continued support extended by both domestic and global partners in showcasing Dubai as a multi-faceted destination that is safe, open and accessible.

A host of festivals, leisure and business events, including the Dubai Shopping Festival, Dubai Food Festival, Gulfood, and the Dubai World Cup. The World Government Summit, Binance Blockchain Week, Dubai Desert Classic, Dubai Duty Free Tennis Championship, Gulfood, Dubai International Boat Show and the Arabian Travel Market also contributed to the growth.

Global campaigns take Dubai to the world

Apart from the host of global gatherings and events showcasing the diversity of the destination’s offering, Dubai continues to engage global audiences through international campaigns and in-market trade activities that highlight it as a destination of choice. This includes the ‘Dubai Presents’ campaign, which promotes the city’s attractions through a series of movie-style trailers featuring stars from both Hollywood and Bollywood.

Marketing activities in key international markets have also been enhanced to showcase the city as the summer destination of choice, particularly through a rewarding ‘Stay More, Pay Less’ summer campaign to attract travelers and families to Dubai, in addition to driving traffic to the ongoing Dubai Summer Surprises festival.

Source: Government of Dubai Media Office