Each week, CAPA – Centre for Aviation, produces informative, thought provoking and detailed market analysis of the aviation industry. With supporting data included in every analysis, CAPA provides unrivalled and unparalleled intelligence.
SIA operates 31x weekly nonstop to N America with Seattle
On 01-Nov-18 Singapore Airlines (SIA) announced the launch of nonstop flights to Seattle from 03-Sep-2019. The new route will give SIA 31 weekly nonstop flights to North America and Singapore Changi Airport 45 weekly flights.
Two and a half years ago Singapore did not have any nonstop flights to North America. In Jun-2016 United launched its first ever nonstop Singapore flight, a daily service from San Francisco, and SIA followed with its first ever San Francisco nonstop in Oct-2016. United has just added a second daily service to San Francisco and SIA has resumed nonstop services to Los Angeles and Newark.
Vancouver could become yet another new nonstop destination for Singapore. Air Canada has been evaluating the launch of Singapore-Vancouver services. Changi Airport has also been trying to convince SIA to launch Vancouver and/or Toronto, although at this point SIA is unlikely to resume serving Canada.
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Colombia aviation: short term pressures but still strong prospects
Colombia’s stature as one of Latin America’s fastest growing aviation markets remains largely intact, but the country’s airlines are facing short term challenges as fuel prices continue to rise and currency pressure mounts.
But some forecasts are showing Colombia’s GDP is likely to expand by 2.8% in 2018, followed by growth of up to 3.6% in 2019. That bodes well for the future of the country’s airlines, and Colombia’s second and third largest operators – LATAM Airlines Colombia and Viva Colombia – have ambitions to expand their positions in the Colombian market.
LATAM Airlines Colombia acknowledges short term pressures but believes the market will remain solid during the next couple of years, and Viva Air Colombia has plans for further expansion.
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NDC: Qantas and Singapore Airlines leaders in Asia Pacific
IATA expects that by the end of this year airlines certified to its New Distribution Capability (NDC) will account for 59% of global passenger traffic. However, while NDC has become mainstream in some regions such as Europe, it has so far struggled to catch on in Asia. Several major Asian markets still do not yet have any NDC-compliant airlines.
There are now close to 50 airlines globally that are compliant with IATA NDC Level 3 standards.
Only five of these airlines are from Asia Pacific excluding China: Qantas, Singapore Airlines, SIA’s regional subsidiary SilkAir, South Korea-based T’Way and Taiwan-based China Airlines. (There are another 11 airlines from mainland China and Hong Kong that are compliant.)
Major commitments to NDC made by Qantas and SIA over the past year should push several of their peers to make similar commitments. Qantas and SIA are widely viewed as innovators and trendsetters in the Asia Pacific airline sector.
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Europe’s global aviation relations: beware a protectionist slide
CAPA’s Qatar Aviation Aeropolitical and Regulatory Summit in Doha on 5-6 February 2019 will include a discussion on Europe’s aviation relations with the world.
The European Union has played a vital leadership role in aviation in Europe, on the North Atlantic and globally. Its single aviation market is its greatest achievement, but it has also signed agreements liberalising market access with the US and a number of other countries around the world.
However, the EU may be losing momentum as a liberalising force in areas such as ownership and control rules. Moreover, it now faces a future without the liberalising voice of the UK – one of the main architects of the single market and an advocate of increased access between the EU and intercontinental markets. In addition, a steady murmur of anti-Gulf rhetoric from some in Europe appears to have given the fuzzy concept of ‘fair competition’ greater prominence in the EU’s aviation strategy.
After the open skies agreements with the US and Canada, signed in the 2000s, the most important comprehensive air transport agreements to be negotiated by the EU are with the Gulf states of Qatar and the UAE. The Commission’s instincts remain liberal, but protectionist forces may now be sensing their opportunity.
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Peruvian airlines: Viva Air and Sky up the competitive stakes
Strong economic growth in Peru, a growing middle class and opportunities for traffic stimulation have coalesced to make the country one of the most competitive markets in Latin America. It was a year and a half ago when the Viva Group debuted its second Latin American franchise in Peru, and now Chile’s Sky Airline plans to enter the Peruvian market in 2019.
At the same time, the country’s second largest airline based on passenger share – Peruvian Airlines – aims to create a new subsidiary to operate Russian manufactured jets.
There is no doubt that Peru’s aviation landscape will change significantly during the next 12 months, and it remains to be seen whether some of the country’s smaller airlines will survive the shifts in competitive dynamics.
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Airframers: Boeing mid-market type by 2019; Airbus deliveries solid
Airbus and Boeing have both gone through major changes during the past year. Airbus has taken a stake in the Bombardier CSeries, changed the aircraft’s name to the A220 and given the programme a shot in the arm with its sales heft and support. In response, Boeing is pursuing a tie-up with Embraer and remains optimistic that the proposed JV will come to fruition.
Boeing is also signalling that it will render a decision regarding a clean-sheet middle of the market aircraft in early 2019 as work continues to establish a business case for a new aircraft programme.
Even as Airbus and Boeing each take steps to ensure that their product portfolios encompass smaller narrowbodies, the trend towards aircraft upgauging continues. Airbus is forecasting solid growth in the number of deliveries of narrowbodies with more than 180 seats over the next few years.
To read on, visit Airframers: Boeing mid-market type by 2019; Airbus deliveries solid