Uncovering the True Value of Omnichannel Retailing and Servicing for Airlines

Omnichannel retailing

Business travel is back — not to pre-pandemic levels, of course, but companies are encouraging their employees to hit the road and get real face time (not to be confused with Apple’s video calls) with vendors, partners, and potential new customers. As airlines take big steps toward a better future with investments for sustainable fuel and pay increases designed to solve the labor shortage, it’s time for the industry to focus on making a difference long before any of those business travelers arrive at the gate with better booking and service processes.

Plenty of corporate travelers opt to book direct, preferring the same experience they are used to on their favorite carrier’s website or mobile app. However, it’s no secret that the process is often more complicated than it needs to be. Since a corporate traveler will often appear as any other regular customer, policies for expenses aren’t available. Then, they might have to submit their expenses — only to discover that their tickets or ancillaries are not eligible for reimbursement. Plus, travel managers aren’t even aware about the booking in the first place. It’s a mess of disjointed information that creates headaches and frustrations for everyone involved in the process.

Navigating Around the ‘Iceberg’

That deep cavern of information is what Kyle Moser, director of multinational sales at American Express Global Business Travel, compares to an “iceberg.”

“Only about 10 percent of [a travel reservation] is visible,” Moser said in a recent episode of Airlines Reporting Corporation’s (ARC) Omnichannel Chatter podcast. “There is a mass of stuff that goes on underneath that most people don’t get.”

Omnichannel retailing and servicing helps sync all that information and turns a turbulent booking journey into a smooth ride. ARC acquired nuTravel in 2020 with a focus on making omnichannel a reality for the aviation industry, and now, nuTravel has unveiled Universal Connect — the first open and agnostic integration platform that enables direct booking capabilities with access to corporate rates and travel policies. United Airlines is already part of the beta, with American Airlines coming onboard soon.

“If a traveler’s company is registered with nuTravel’s Universal Connect,” Joe Ascanio, vice president of marketing and digital strategy at nuTravel, told Skift, “that traveler can go to a participating carrier’s app or website and book their travel with their corporate negotiated rates, payment methods, and travel policy information available, creating a consistent experience with corporate or TMC booking tools.”

For business travelers who are tired of dealing with a cumbersome booking process, the chance to book that flight to next week’s big meeting the same way they booked that flight for their summer vacation is a breath of fresh air. Finally, they can enjoy the ingredients that have seemed elusive for so long: flexibility and freedom.

Taking a Cue From Consumer-Facing Brands

An omnichannel approach might sound new for the corporate world, but Sarah Boyd, senior manager of airline retailing solutions at ARC, highlights that all those business travelers are quickly getting used to frictionless planning and purchasing in every other facet of their lives. Consider how Amazon — the ultimate name in ecommerce — has embraced a brick-and-mortar approach to give customers access to services away from their screens. The company operates physical counter locations where customers can easily pick up packages, drop off returns, and get in-person assistance. The experience that a customer might begin on their smartphone or laptop picks up right where they left off when they walk into the store. And if a customer doesn’t have access to an Amazon counter location, they can head to a dedicated Amazon counter at Kohl’s.

It’s not just Amazon, either. Consumers can browse for eyeglasses in store and then buy them in an app with Warby Parker, and they can try on makeup in an app and then buy it in store with Sephora. It’s a buy anywhere, service anywhere model that customers love.

“Today’s traveler expects an omnichannel experience since they receive that with other products,” Boyd said. “Customers don’t understand why they might not see their corporate rate if they book directly with the airline or why they don’t have access to certain ancillaries through travel agencies.”

Simplifying the Servicing Aspect — And Keeping Everyone Informed

The initial booking decision is just one critical piece of the omnichannel puzzle. When corporate travelers want to make changes — opting to extend a trip to have their family join them, for example — that adjustment shouldn’t require retracing any steps to get back to the original booking channel. “When customers need to manage their booking,” Boyd said, “they can do that through whichever channel is most convenient and have access to the same options and policies.”

While it’s important to make the traveler’s life easy, it’s equally essential to make sure that corporate policies are applied and the travel manager is in-the-know, too. “If a traveler books through an agency using a direct connection with an airline, like NDC, but needs to make changes at the airport with a customer service representative, the airline can then use NDC messaging to push those changes back to the agency,” Boyd said.

Speaking of change, it has never come easy in a corporate travel space that often seems unmovable — a characteristic that makes Moser’s iceberg comparison even more appropriate. While Boyd acknowledges that shifting to an omnichannel model is a “complicated challenge” for airlines and agencies, she believes it is essential for the future of travel. She explained, “The members of the travel industry who best keep pace — whether airlines, agencies, or travel managers — will be best positioned for success.”

Source: Skift

Soaring cost of flying cargo threatens region’s recovery

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The New Times

DOT Pushes Airlines to Dole Out More Refunds for Canceled Flights

Travelers in the U.S. have shockingly few rights when flights get delayed or canceled. There’s only one ironclad rule, really: If an airline cancels or significantly delays a flight, passengers can cancel their trip and get a full refund – not just a voucher or travel credit.

Two years after an avalanche of complaints from flyers fighting for those refunds as the pandemic first upended travel, federal regulators are finally pushing to tighten those rules – and clear up exactly when travelers are entitled to get their money back.

The U.S. Department of Transportation on Wednesday proposed a new rule that would set even more refund laws in stone. It would require airlines to inform passengers when a refund is available. And it would force airlines who rake in federal subsidies during a future public health emergency, like the $50 billion-plus U.S. airlines collected during the COVID-19 pandemic, to issue refunds for travelers who cancel flights – not just a voucher.

“When Americans buy an airline ticket, they should get to their destination safely, reliably, and affordably,” U.S. Transportation Secretary Pete Buttigieg said in a statement. “This new proposed rule would protect the rights of travelers and help ensure they get the timely refunds they deserve from the airlines.”

What Would Change with Airline Refund Laws?

These new rules have little to do with the recent spate of delays and cancellations that have frustrated millions of Americans returning to the skies this summer. It wouldn’t force airlines to dole out compensation for those disruptions, as we and several members of Congress have called for.

Instead, it’s geared more toward responding to 2020, when airlines pulled hundreds of planes out of the sky as travel collapsed, canceling flights and leaving passengers to fight to get their money back. And they did fight: Consumer complaints to the department regarding airline refunds jumped from under 1,600 in 2019 to almost 90,000, according to Air Travel Consumer Reports – a mammoth increase of 5,587%.

These new proposed rules would set even more down in stone for when travelers are entitled to get a refund.

Chiefly, they clarify exactly how long of a delay or schedule change triggers a refund. Currently, federal rules leave it up to airlines what constitutes a “significant delay.” Most major airlines set that threshold at two hours while some budget carriers consider it a whole calendar day change.

The new rules would set one clear standard, among others, including:

  • The proposed rules would require a refund if an airline changes your flight by three hours or more
  • For international flights, schedule changes of more than six hours would trigger a mandatory refund
  • Adding a connection to a nonstop flight (or additional connections) would be considered a significant delay – another aspect that’s not currently clear in federal regulations
  • Shifting your flight to arrive in or depart from a different airport would trigger a refund
  • Downgrading cabins or class of service would trigger the option of a refund too
  • A plane swap that results in “a significant downgrade of the available amenities and travel experiences”

Giving airlines a three-hour window to change schedules without triggering refunds – and a whopping six-hour threshold for international flights – seems far too generous, especially when many airlines have for years doled out refunds after two-hour schedule changes or delays. But here’s the most important part: These changes would also require airlines to explicitly inform passengers that a refund is available … before offering travel credits or a voucher.

That’s been airlines’ go-to move for the last two-plus years. They’ve sold tickets, canceled flights, and offered vouchers, hoping that passengers don’t know they could get their money back instead.

Without that required disclosure, these new rules are pointless. Airlines could keep doing what they’ve done all along: Stick travelers with a voucher that might expire in a year or less.

Airlines have repeatedly pointed to the fact that they’ve done away with change fees, giving flyers more flexibility to cancel an upcoming flight and pocket a voucher for the value of their ticket. That’s true, but these new proposed rules would also force airlines to be even more generous with doling out credits if anything like another COVID-19 pandemic strikes.

Namely, it would require airlines to issue travel credits or vouchers that never expire if a passenger cancels due to travel bans or restrictions, during a future public health emergency, or simply due to health advice from a medical professional.

Most airlines’ travel credits expire just one year from the date of purchase of the original ticket. After a change just last week, only Southwest – long the leader when it comes to changes fees and flexibility – offers travel credits without expiration dates. Delta has publicly considered doing the same.

Will it Actually Happen?

That’s anyone’s guess.

This is all part of the federal rulemaking process, which is a marathon – not a sprint. There’s no guarantee these changes will become law anytime soon, if ever.

For instance, the U.S. Customs and Border Protection has been pushing to raise the price of Global Entry through the federal rulemaking process since January 2021. Nineteen months laters, there’s still no sign of when that price increase may take effect.

With these proposed rules now put on paper, it begins a 90-day public comment period on the changes. The Department is also hosting a public meeting to discuss the proposed changes on Aug. 22.

Source: Thrifty Traveler

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

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

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

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

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

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

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

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

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

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

Source: Bloomberg

Dubai to launch a football-themed hotel ahead of FIFA World Cup 2022 in Qatar

football-themed hotel

As if football fanatics didn’t have enough reasons to get excited about visiting the Middle East for FIFA World Cup 2022 in Qatar later this year, Dubai is all set to leave them even more thrilled. The emirate is opening its first ever football-themed hotel where fans can base themselves during the championship and be shuttled in and out of Doha for the day.

NH Dubai The Palm is launching in November 2022 on the western side of The Palm Jumeirah. Strategically located near some of the country’s top tourist hotspots, the luxury resort will host soccer fans that are scheduled to fly between Dubai and Doha throughout the tournament. There’s an increased demand of accommodation in the UAE from international football fans in recent weeks. The Expat Sport travel agency’s “Football Fans Dubai Experience” will provide a package that includes transportation to and from the airport.

“There will be international fans who are coming to this region for the first time, so being in a relaxed environment with other like-minded individuals in a stunning location on The Palm should make this an enjoyable and unforgettable holiday,” said Sue Holt, executive director of Expat Sport.

NH Dubai The Palm is, therefore, offering a great opportunity to foreign fans spend time in a laidback, luxurious setting with other like-minded guests. The 533-key hotel offers exquisite views of the Arabian Sea, Marina skyline, the iconic Burj Al Arab, and the Dubai Eye. It also has an infinity pool, a wellness centre, a lounge, direct access to the beach, and a sports bar — where you can feel the real thrill of the live football matches on screen. 

The hotel will offer welcome and hospitality packages and discounts to single-day visitors to Doha, along with shuttle services to official fan zones such as Dubai Harbour, Coca-Cola Arena, and Football Park. The welcome packages range from four, eight, and 12 nights, including daily buffet breakfast and one-, two- and three-day return flights, respectively.

At the NH Dubai The Palm, hospitality packages include match tickets. The packages begin at around USD 952 (INR74,842) for a group match, including food, beverages, and stadium parking. At USD 4,900 (INR3,85,216) for a group match, you get Pearl Lounge seat for each, a six-course meal, cocktails, various entertainment, and a dedicated concierge service. For the ultimate immersive experience, go for the stadium suite with private dining at approximately USD 22,557 (INR17,73,329)!

Holt says, “This is a completely new addition to the Dubai hospitality landscape. We are collaborating with the official partners of the FIFA World Cup to make this a unique and immersive experience for our guests.”

Source: Traveldine

Common Mistakes Kenyans Make in Visa Applications

Visa Applications

Kenyans seeking to travel to different destinations across the world are always forced to cut short their trips due to Visa-related hitches that can be avoided in the application process.

The issue involving Africa’s fastest man, Ferdinard Omanyala, who is set to take part in 100m championships in Oregon in the US, lifted the lid on the headache and stress most Kenyans face while planning their journeys.

Other than obtaining a passport, some countries require Kenyan travellers to apply for a Visa, which comes at a fee.

The basic requirements in filling visa forms include family and given name, gender, date of birth, country of passport, passport number, passport date of issue and passport date of expiry, as well as place of issue.

Most travellers receive their approved e-Visas within 72 hours of application.

Common Mistakes

Kenyans are in most cases denied Visas due to mistakes made while completing the application forms or for leaving out some crucial information.

Different embassies expect Kenyans to provide exact details that match those in their passports. Any differences in spelling lead to automatic rejection of the application.

Most Kenyans make mistakes when filling in passport number, date of issue and expiry date fields. Mistakes are made when copying the digits and this may deem the whole process null and void.

Most embassies do not accept any applications with missing information.

While completing the Visa form, Kenyan travellers must upload an image of their passport, a recent passport-size photograph, and proof of travel. Failing to fill the form as stated amounts to disqualification.

Embassies reject applications with passports that do not show all the information clearly. The use of flashlights should be avoided as it causes reflections affecting the clarity of communication.

Others miss out by failing to present the correct size of a passport-size photograph, which does not align with the format stated in the application form.

The proof of travel relevant to the applicant’s reason for visiting should be uploaded. Tourists require a hotel reservation and onward flight tickets. Failing to present the evidence of travel calls for immediate disqualification by any given Embassy.

Kenyans travelling for other purposes such as medical and business must also upload corresponding documentation. Failure to do so prevents the Visa from being approved.

Options for Kenyans who have been denied Visas

Based on the issue, Kenyans who are blocked from travelling due to Visa hitches are given second chances by Embassies and consulates.

Those with mistakes are allowed to correct any errors they made before submitting new requests. 

However, the Visa application fee is non-refundable. For any new application, Kenyans must pay the required fee again.

If the process is rejected, Kenyans who apply through travelling agencies may be refunded some of the application fees.

A Visa still does not guarantee a Kenyan entry to the country of destination. The permit only indicates that a Kenyan traveller is eligible to enter the other country abroad.

Immigration officers conduct inspections and determine whether a Kenyan may enter the country based on immigration laws.

Visas validity varies with the country. An entry Visa to Kenya is valid for a period of three months from the day it was issued.

However, there has been a global delay in the processing of visas and this has affected millions of travellers. 

The British High Commissioner to Nairobi, Jane Marriott, recently admitted that her office was overwhelmed by the growing demand and the backlog created during the pandemic.

Marriott advised Kenyans to apply for their visas six weeks before the travel date to give the Embassy ample time to process them.

She emphasised that Kenyans were not the only ones affected by the delayed process. 

“I know how inconvenienced many of you are. I am sorry. It is a global challenge, not a Kenyan problem only,” the envoy stated.

Source: Kenyans

Kenya post-election business confidence high – survey

post-election business confidence

Business executives in Kenya are optimistic about growth prospect of their companies and the wider economy post election.

According to the latest Kenya Private Sector Alliance (KEPSA) Business Confidence Index, the business community is upbeat about this year’s post-election economic stability unlike in previous years.

The survey reported a confidence index reading of 61, compared to 44 and 53.8 index points in 2017 and 2012 respectively, when fear of violence and disruptions was high. 

With a backdrop of previous cases of electoral violence, it was assumed that some violence would occur which created protection concerns.

However, a high rating this year means most CEOs are expecting a stable economy at least six months after the August 9 polls.

Most business executives also expressed optimism to hire additional full-time employees in the next six months, which will translate to increased business operations.

Conducted between July 4 and July 25, the survey engaged a total of 173 business leaders from medium and large businesses.

It sought views on selected sector indicators including business confidence and optimism, current quarter business activity, and outlook for business activity in the near term.

Most CEOs are counting on a smooth power transition for the economic conditions to improve across all industries compared to six months ago.

Specifically, there is rise in optimism and business expectations for the tourism and hospitality sectors at 85 index points and wholesale and retail at 70 index points.

The least optimistic sectors are finance and ICT, probably because businesses in these sectors were already experiencing growth relative to other sectors at the height of the Covid-19 pandemic, hence executives do not expect much change in the coming six months.

These sentiments are reported against the backdrop of the Russia Ukraine War that disrupted value chains, resulting in fuel, energy, wheat and fertiliser price increase.

This was further compounded by the rising inflation in Kenya and across the globe as well as the extended drought.

Even so, majority of business owners are certain that the economy will continue to grow after elections.

The economy grew by 6.8 per cent in the first three months of the year, the highest in 22 years according to Kenya National Bureau of Statistics (KNBS) data.

This was mainly supported by rebounds in most economic activities that contracted significantly in the first quarter of 2021 due to measures instituted to curb the spread of Covid-19.

According to the survey business executives remain sckeptical about the possibility of reduced production costs due to the prevailing high fuel, raw materials, and other input costs that are expected to go up, thus projecting lower industry growth prospects over the next six months.

They foresee prices of goods and services increasing after elections.

“For the 23 per cent expecting lower growth prospects for their companies and the 29 per cent expecting lower growth prospects for their industries, these expectations were tied to failure to address the high-cost production, inflation, rise in fuel prices,” Victor Ogalo, KEPSA deputy CEO said.

The report shows business executives are encouraged by the implementation of key policies and ongoing infrastructure improvement initiatives as well as the various business support subsidies by the government.

In addition to these efforts, executives now want tax concessions and the lowering of raw material prices to improve the business environment.

Source: The Star

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

Lufthansa Cargo Cathay Pacific Swiss WorldCargo

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

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

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

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

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

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

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

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

Source: Aerotime Hub

Canada must remove travel restrictions

Canada travel restrictions

IATA has again called on the Canadian Government to urgently discontinue its COVID-19 related travel restrictions. These are now out of step with the global trend of lifting travel restrictions and are partly responsible for the ongoing delays and disruption affecting air travelers across Canada.

“Canada has become a total outlier in managing COVID-19 and travel. Though governments across the globe are rolling back restrictions, the Government of Canada is reinstating them. The government should follow the lead of its peers, including, for example, Australia. Though that country had some of the toughest travel restrictions during the height of the pandemic, it has now lifted them, including the vaccination requirement. Rather than following this example and enabling travel and tourism to recover, those in power in Canada believe that throwing more red tape at the pandemic is the way forward,” said Peter Cerda, IATA’s Regional Vice President for the Americas.

IATA is calling on the Government of Canada to quickly address the following issues:

  • Remove random testing of international arriving passengers
    If, as announced, random testing is reinstated from 19 July 2022, then travelers will be forced to either go to a designated testing center or administer a self-test after arrival. In case of a positive test result, travelers must isolate for 10 days, which is twice as long as the average isolation period recommend by any provincial or territorial health authority in Canada and once again singles out travelers compared with the rest of the population.
  • End the vaccination requirement for international travel
    The vaccination mandate for international travel to Canada is in essence obsolete, as only the basic immunization and no booster shots are required to be considered fully vaccinated. In addition, the proof of vaccination is no longer used in everyday life in Canada. Ending this travel-related mandate would remove the need for the manual and time-intensive documentation check at flight origins outside Canada and during immigration upon arrival.
  • Use ArriveCAN solely as an entry tool for customs
    The removal of the vaccination mandate would also allow ArriveCAN to be used solely for customs and immigration purposes and not for capturing and validating COVID-19 related health and vaccination information. This is what is slowing down border processing. In addition, airlines are now being asked to provide a list of passengers who have not completed ArriveCAN not later than one hour after the departure of an international flight to Canada. This is tying up critical staff at a time when resources are already stretched to the limit.
  • Ending Mask Mandates
    Mask mandates at airports and on aircraft need to be withdrawn, especially since they are no longer in place in most public settings in Canada, including public transport and sporting venues.

“After more than two-years of onerous COVID-19 restrictions people want to be able to travel again, as we can clearly see from the current level of demand. Ramping up the entire value chain has come with some challenges. Maintaining outdated COVID-19 restrictions contributes to the delays passengers are experiencing at major Canadian international gateways. Governments need to ensure that travel restrictions are designed to address today’s environment, not the environment of the previous two years. Now is the time for the Government of Canada to join its counterparts around the world and remove unnecessary and outdated measures,” said Cerda.

Source: Airlines.

A toxic culture and ‘race to the bottom’: Pilots open up on why air travel is in chaos

air travel is in chaos

Canceled flights. Long lines. Staff walkouts. Missing luggage. 

Sound familiar? The chaos engulfing many major airports in North America and Europe since summer hasn’t abated much, and news outlets and social media users continue to report on hordes of impatient travelers and mountains of misplaced suitcases.

Just this week, German carrier Lufthansa canceled nearly all its flights in Frankfurt and Munich, stranding some 130,000 travelers due to a one-day walkout by its ground staff who were on strike for better pay.  

London’s Heathrow Airport and Amsterdam’s Schiphol Airport — two of the largest travel hubs in Europe —slashed their passenger capacity and demanded that airlines cut flights in and out of their airports, which angered both travelers and airline managers.

Carriers in the U.S. have also canceled and delayed tens of thousands of flights due to staffing shortages and weather issues. 

Airlines are vocally laying the blame on airports and governments. On Monday, the chief financial officer of low-cost European carrier Ryanair, Neil Sorahan, complained that airports “had one job to do.”

But many of those working in the industry say airlines are partly responsible for staff shortages as well, and the situation is becoming dire enough that it could threaten safety. 

CNBC spoke to several pilots flying for major airlines, all of whom described fatigue due to long hours and what they said was opportunism and a desire to cut costs as part of a toxic “race to the bottom” culture pervading the industry and worsening the messy situation that travelers are facing today.

All the airline staff spoke anonymously because they were not authorized to speak to the press.   

‘Absolute carnage’

“From a passenger point of view, it’s an absolute nightmare,” a pilot for European low-cost carrier easyJet told CNBC. 

“Leading into the summer, it was absolute carnage because airlines didn’t know what they were doing. They didn’t have a proper plan in place. All they knew they wanted to do was try and fly as much as humanly possible – almost as if the pandemic had never happened,” the pilot said. 

“But they forgot that they’d cut all of their resources.”

The ensuing imbalance has “made our life an absolute mess, both cabin crew and pilots,” the pilot added, explaining how a shortage of ground staff since the pandemic layoffs — those who handle baggage, check-in, security and more — has created a domino effect that’s throwing a wrench into flying schedules.

“A bit of a toxic soup … the airports and the airlines share an equal level of blame” – Pilot – Emirates Airlines.

In a statement, easyJet said that the health and wellbeing of employees is “our highest priority,” stressing that “we take our responsibilities as an employer very seriously and employ our people on local contracts on competitive terms and in line with local legislation.”

The industry is now hobbled by a combination of factors: not having enough resources for retraining, former staff not wanting to return, and poor pay that has largely remained suppressed since pandemic-era cuts, despite significantly improved revenue for airlines. 

“They’ve told us pilots we are on pay cuts until at least 2030 — except all the managers are back on full pay plus pay rises for inflation,” a pilot for British Airways said. 

“Various governments with their restrictions and no support for the aviation sector” as well as airport companies are in large part to blame for the current chaos, the pilot said, adding that “some airlines took advantage of the situation to cut salaries, make new contracts and lay people off, and now that things are back to normal they can’t cope.”

While many airports and airlines are now recruiting and offering better pay, the required training programs and security clearance processors are also severely cut back and overwhelmed, further hobbling the sector.  

‘They are shocked, which is incredible’

British Airways ground staff were set to strike in August over the fact that their full pay had still not been reinstated — something especially stinging at a time when the CEO of BA’s parent company, IAG, was given a £250,000 ($303,000) gross living allowance for the year. 

But this week, the airline and workers’ union agreed on a salary increase to call off the planned strike, though some staff say it’s still not a full return to their pre-pandemic pay.  

In a statement, British Airways said, “The last two years have been devastating for the entire aviation industry. We took action to restructure our business to survive and to save jobs.”

The company also said “the vast majority of redundancies during this time period were voluntary.”

“We’re completely focused on building resilience into our operation to give customers the certainty they deserve,” the airline said.

IAG CEO Luis Gallego, whose company owns BA, forfeited his £900,000 bonus in 2021 and took voluntary salary reductions in 2020 and 2021, and did not receive his 2020 bonus.


“They just want the cheapest labor to produce their own big bonuses and keep shareholders happy” – Pilot, British Airways

One pilot flying for Dubai’s flagship Emirates Airline said that a short-term mindset that took employees for granted had for years been laying the groundwork for today’s situation.

The airlines “were happy to try and depress wages for lots of people in the industry for years, on the assumption that nobody had anywhere else to go,” the pilot said. “And now that people are exercising their right to go somewhere else, they are shocked, which is incredible. I’m shocked that they’re shocked.”

A safety risk?

All this stress for airline staff comes on top of the often-ignored issue of pilot fatigue, all the pilots interviewed by CNBC said.

The legal maximum limit for a pilot’s flying time is 900 hours per year. But for many airlines, “that wasn’t seen as the absolute maximum, it was seen as the target to try and make everybody’s workload as efficient as possible,” the easyJet pilot said.

“That’s the big worry with us is that we’ve got a fairly toxic culture, an inordinate amount of work,” the Emirates pilot echoed. “That all adds up to potentially reducing the safety margin. And that’s a big concern.”

All this has been combined with low pay and less attractive contracts, the pilots say, many of which were rewritten when the pandemic turned air travel on its head.

“A bit of a toxic soup of all of those, the airports and the airlines share an equal level of blame. It’s been a race to the bottom for years,” the Emirates pilot said. “They’re only going to ever try and pay as little as they can get away with paying.”

Emirates Airline did not reply to a CNBC request for comment. 

‘Race to the bottom’

“Crony capitalists. Rat race to the bottom. No respect for skilled workforce now,” the BA pilot said of the industry’s corporate leadership. “They just want the cheapest labor to produce their own big bonuses and keep shareholders happy.”

The International Air Transport Association said in response to these criticisms that “the airline industry is ramping up resources as quickly as possible to safely and efficiently meet the needs of travelers.” It acknowledged that “there is no doubt that these are tough times for the industry’s workers, particularly where they are in short supply.”

The trade group has issued recommendations “to attract and retain talent in the ground handling sector,” and said in a statement that “securing additional resources where deficiencies exist is among the top priorities of industry management teams around the world.”

“And in the meantime,” it added, “the patience of travelers.”

Source: CNBC Travel