Dubai sees air travel surge, expects FIFA World Cup boost

Dubai International Airport

DUBAI, United Arab Emirates — Dubai International Airport saw a surge in passengers over the first half of 2022 as pandemic restrictions eased and the upcoming FIFA World Cup in Qatar will further boost traffic to the city-state’s second airfield, its chief executive said Wednesday.

Paul Griffiths, who oversees the world’s busiest airport for international travel, told The Associated Press that the airport handled 160% more traffic over the past six months compared to the same period last year, part of an air travel rebound around the world.

The nearly 28 million people who traveled through the airport over the past six months represent some 70% of the airport’s pre-pandemic levels, even as Dubai’s key source market of China remains closed due to severe pandemic restrictions. Griffiths said he expects the airport’s traffic to return to pre-pandemic levels by the end of next year.

“It’s a very, very welcome surge of traffic,” Griffiths said.

The first World Cup in the Middle East, he added, will send foreign soccer fans flocking to Al Maktoum International Airport at Dubai World Central, or DWC. From there, they’ll travel daily to Qatar, a tiny neighbor that faces a hotel squeeze.

“We’ve actually seen a huge amounts of demand at DWC for slot filings for airlines wanting to operate a shuttle service,” he said. “I think the city has a lot to offer and a lot to gain from the World Cup.”

Among the airlines buying extra slots to shuttle soccer fans to the tournament from DWC are Qatar Airways, low-cost carrier FlyDubai and budget airline Wizz Air Abu Dhabi, he said.

Ambitions plans to turn the airfield in Dubai’s southern desert into a mega-aviation hub, first unveiled by Dubai before the 2008 global financial crisis, have sputtered in recent years. Long-haul carrier Emirates, based in Dubai, parked many of its double-decker Airbus A380s there during the pandemic as commercial flights halted.

A key East-West transit point, Dubai’s air traffic is closely watched as a barometer of the city-state’s non-oil economy. Emirates remains the linchpin of the wider empire known as “Dubai Inc.,” an interlocking series of government-owned businesses.

During the first half of 2022, Dubai International Airport dealt with nearly 56% more flights than the same period in 2021, when contagious coronavirus variants clobbered the industry.

Now, in a sign of the health of the industry, Emirates said Wednesday that it would pour billions of dollars into retrofitting much of its Airbus A380 and Boeing 777 fleet. At the height of the pandemic, the airline received a $4 billion government bailout.

The widespread lifting of virus restrictions has triggered a rapid increase in air travel demand, filling Dubai’s hub and causing mayhem at airports around the world.

While Dubai has not seen the chaotic crowds overwhelming European hubs in recent weeks, Griffiths said the global disruptions have affected its main airport.

“It’s obviously affected growth because some of the caps on capacity that they’ve applied to airports like Heathrow have had an impact on our numbers,” he said.

Last month Emirates lashed out at Heathrow, refusing its request to cap departing passengers and cut flights to the London hub. Emirates later agreed to temporarily limit sales on its flights.

Since Moscow’s invasion of Ukraine sent Russia’s richest businessmen scrambling to save their assets from what became a widening dragnet, Dubai has welcomed an influx of Russians to its beach-front villas and luxury hotels. The city remains one of the few remaining flight corridors out of Moscow.

Griffiths declined to comment on Russians carrying cash out of the country to Dubai, which has become the talk of the town in recent months.

But he said the flow of Russian visitors would not stop anytime soon, adding: “It’s still a major source of traffic for us.”

Source: ABC News

Returned Artefacts from European Museums could Boost Africa’s Travel and Tourism

Returned Artefacts from European Museums

Museums are a significant tourist attraction and the world’s top 100 museums attracted a total of 71m visitors during 2021 – despite the COVID-19 pandemic and continued lockdown restrictions, according to art newspaper.

In June, the Smithsonian in the US undertook to return 29 Benin bronzes held in its National Museum of African Art collection, in July Germany signed an agreement with Nigeria to cover over 1000 objects in its museums and In August the UK’s Horniman Museum announced it would return 72 artifacts.

Nigeria’s Legacy Restoration Trust has played an important role in this process by providing a politically neutral entity into which bronze can be transferred – both the Nigerian government and Benin’s royal family have unsuccessfully claimed them in the past. It could offer a blueprint for Nigeria and other African countries eager to reclaim both their history and the promises they made with tourism dollars.

The Musée du Louvre in Paris once again tops the list of most-visited museums, attracting 2.8m visitors in 2021 (still below pre-pandemic levels that saw 9.6m visitors in 2019) went). While the full range of economic benefits to the travel and tourism industries is difficult to pin down, Statista projects the French travel and tourism market will reach $16.55bn in 2022. Nigeria’s travel and tourism industry, which saw significant losses from the Covid-19 pandemic but managed to keep domestic tourism afloat, could use such a boost.

Source: Breaking Travel News

Kenya Airways maintains steady path to recovery as it releases its Half Year 2022 results

Kenya Airways Chairman Michael Joseph

National carrier Kenya Airways PLC (KQ) has released its Half Year financial results for the six months ending June 2022 at a virtual investor briefing held this morning. The Group’s total revenue stood at Kshs.48,104 million, recording a 76% increase compared to the same period last year. This increase is mainly attributed to a significant growth in passenger revenue which grew by 109%, and cargo revenue which increased by 18%.

During the first half of 2022, operations were positively impacted by pent-up demand and the removal of travel restrictions, resulting in a strong and sustained recovery in trading performance compared to a similar period in the prior year.

KQ uplifted a total of 1.61 million passengers during the period, an 85% improvement compared to the prior year’s 0.87 million passengers. This, however, remains 33% lower than the pre-pandemic period of 2019. Cargo tonnage increased by 39% compared to the same period in 2021, demonstrating continuous outstanding growth in air freight services.

Kenya Airways Board Chairman Michael Joseph said, “The opening of borders worldwide has led to quick rebounds in some key markets. Lingering travel restrictions in some markets have limited the recovery. It is also important to note that these results were further affected by the high price of aviation fuel which is over 65% more than last year. If we adjusted for the fuel price spike, the
operating profit for the period would have been Kshs1.5B.”

The International Air Transport Association is confident global airline passenger numbers will reach 83% of pre-pandemic figures in 2022, and the aviation industry’s recovery to profitability will be within sight despite ongoing uncertainties. Strong demand, lifting travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fuelling a resurgence in
demand that will see industry revenues reach USD782 billion, an increase of 54.5% year-on-year and representing 93.3% of 2019 levels.

Kenya Airways Group Managing Director and CEO Allan Kilavuka said, “The industry is experiencing recovery. Our focus is to ensure that we strengthen our operational resilience through innovation and diversification to deliver great and reliable services to our customers. We have transformed the airline during the pandemic, enabling us to emerge with renewed strength, underpinned by a product, network and service that customers value.”

Source: TravelDailyNews

Emirates to suspend Nigeria flights from September over trapped funds

Dubai’s Emirates will suspend flights to Nigeria from next month over an inability to repatriate funds from Africa’s most populous nation, the airline said on Thursday.

The decision highlights the difficulties faced by international carriers that fly to Nigeria, which is one of the biggest markets in Africa for several of them.

The country has restricted access to foreign currency for imports and for investors seeking to repatriate their profits due to a shortage of dollars. Nigeria gets about 90% of its foreign exchange from oil but is struggling to produce due to pipeline theft and years of under-investment.

The International Air Transport Association said in June Nigeria was withholding $450 million in revenue that international carriers operating in the country had earned. read more

Emirates said it had made no progress in efforts to initiate dialogue with the relevant authorities for their urgent intervention.

“Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective 1 September 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market,” it said in a statement.

A Federal Ministry of Aviation spokesperson did not immediately respond to a request for comment.

Emirates had earlier sent a letter to the government saying it could cut flights to Lagos this month because it could not get $85 million stuck in the country as of July, a figure that had been rising by $10 million per month. read more

Emirates said it would re-evaluate its decision if the situation over the blocked funds changed in the coming days.

Affected customers would be helped to make alternative travel arrangements where possible, it added.

Source: Reuters

Heathrow says travel disruption is easing due to passenger cap

travel disruption

London Heathrow claims the cap on passenger numbers has helped the airport to weather the travel disruptions, according to the airport’s July 2022 traffic report. 

“The cap on departing passenger numbers has delivered improvements to passenger experience, with fewer last minute flight cancellations, better aircraft punctuality and baggage delivery,” the airport outlined in the report.  

After weeks of travel disruption, with passengers waiting in long queues at airports, Heathrow introduced the cap on passenger numbers on July 12, 2022, with a rule to handle no more than 100,000 departing passengers a day until September 11, 2022.   

Consequently, Heathrow received criticism from several airlines across the world because carriers were forced to reduce the number of flights to the UK’s largest airport during the busy summer period. 

However, Heathrow Airport has hit back at airlines for failing to attract ground staff to work at airports due to low wages, explaining that ground handling staff “do not work for the airport itself and are independent businesses contracted to airlines”.  

“For months ground handling companies have been trying to recruit and train skilled workers, but if their airline customers aren’t willing to pay market rates, then they aren’t able to fill the posts,” Heathrow’s Chief of Staff and Carbon, Nigel Milton said in a statement date July 21, 2022.  

In July 2022, the airport accommodated more than 6 million people. Looking ahead, Heathrow forecasts a total of 16 million passengers will travel through the airport between July and August 2022. 

Read Also: The UK Launches A 22 Point Plan To Tackle Air Travel Disruption

Source: Aerotime Hub

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

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

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