Catch up on CAPA’s exclusive Market Analysis pieces

    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.


    Delhi’s new airport: construction to start, for 2022 opening

    A Foundation Stone will shortly be laid to mark the start of construction work on Delhi’s second airport, which will be a P3 transaction. The project was announced well after the second airport for Mumbai but has caught it up, and the chances are it will open in 2022.

    As usual, there has been a myriad of hurdles to jump along the way, including in this instance advice from IATA not to decentralise operations.

    But civil aviation in India is evolving rapidly and the second airport – which itself is expected to fill up rapidly – does at least offer the authorities options to meet the demands of that evolution.

    To read on, visit Delhi’s new airport: construction to start, for 2022 opening


    UK-China aviation: BA expands China Southern codeshare

    British Airways and China Southern Airlines have signed an MoU to expand their codeshare agreement and implement reciprocal frequent flyer benefits. This throws the spotlight on the market between the UK – Europe’s largest aviation market – and China – the largest in Asia.

    UK-China seat capacity is set to grow by 18% year-on-year in summer 2019 and will have doubled over five years. By contrast, BA’s capacity will be down versus five years ago, following its withdrawal from Chengdu in 2017 (a route to be relaunched by Air China in Apr-2019)

    The number of airlines operating UK-China is now nine, with four having entered since summer 2017. Air China has a significant capacity lead over BA, a lead that will be further extended by an additional daily frequency on London Heathrow-Beijing this summer. The number of routes will be 14 in summer 2019, up from five two years ago, while BA has reduced from three to two since 2017.

    The wider agreement between BA and China Southern may not be a reliable signal of China Southern’s intentions towards oneworld, following its decision to leave SkyTeam. However, it is a signal of the importance of China to BA and a reminder that BA has more to do in this market.

    To read on, visit UK-China aviation: BA expands China Southern codeshare


    European airlines: ‘same brand, different operator’ model is growing

    Recent years have seen the proliferation of the multi-platform approach by European airline groups to managing a single airline brand. This is not a new model, but it seems to have become more widely adopted. This includes single brand airline groups with multiple operating subsidiaries and single brands within multi brand groups that spread the operation of the brand across more than one platform.

    Leading examples of this include Norwegian, Eurowings and LEVEL. There are a number of reasons for following this trend, with each airline or group having a different motivation.

    Circumventing restrictions on traffic rights; gaining access to lower labour costs; accelerating the growth of the brand; creating alternative growth platforms; minimising aircraft operating costs and coping with cultural issues within a group have all led to airlines using a range of production platforms to operate a single brand. Brexit has added another reason, specifically for airlines such as Ryanair, Wizz Air and easyJet.

    This report looks at some examples of the multi-platform approach by European airline brands and the reasons for doing so.

    To read on, visit European airlines: ‘same brand, different operator’ model is growing


    Seattle-Asia aviation booms; Asia’s leading premium airlines expand

    2019 will be a landmark year for Seattle-Tacoma International Airport as three Asian airlines launch services. The new services will enable Seattle to overtake Newark this summer as the sixth largest gateway to Asia in the continental US.

    Seattle will have an all-time high of 93 weekly passenger flights to Asia in Jul-2019, including seven new flights to Hong Kong from Cathay Pacific and seven new flights to Tokyo Narita from Japan Airlines (JAL). Cathay and JAL are both launching Seattle at the start of the 2019 summer schedule, giving Seattle passenger services from eight Asian airlines.

    Delta Air Lines is also launching Seattle-Osaka at the start of the 2019 summer schedule, expanding Seattle’s Asia network to eight destinations.

    By the end of the 2019 summer season Seattle will have nine Asian destinations and services from nine Asian airlines, as Singapore Airlines (SIA) is launching nonstop service from Seattle to Singapore in Sep-2019.

    To read on, visit Seattle-Asia aviation booms; Asia’s leading premium airlines expand


    Europe airline groups 2018 ranking: Lufthansa group still at the top

    In 2018 Lufthansa Group retained the title of Europe’s largest airline group by passenger numbers, with a 10.0% increase to 142 million passengers. Ryanair remained in second place among airline groups and remained the biggest individual airline brand in Europe, growing by 8.0% to 139 million passengers.

    Jet2.com entered the ranking at number 19, pushing Air Europa into 20th and knocking Flybe out of the top 20 altogether. The UK LCC grew traffic by 32.7%, to 12.2 million passengers, and took the title of fastest growing among the top 20 groups.

    IAG remained third, growing by 7.7% to 112.9 million passengers. Air France-KLM became only the fourth European airline group with more than 100 million passengers, growing by 2.8% to 101 million. The next four groups – easyJet (92 million passengers, up 13%), Turkish Airlines (75 million, up 9.5%), Aeroflot Group (56 million, up 11%) and Norwegian (37 million, up 12.7%) – also held their 2017 positions.

    Wizz Air (with the second fastest growth, up by 19.6% to 34 million) jumped ahead of SAS (up 1.2%, to 30 million) into ninth place. The Scandinavian airline is in danger of falling out of the top 10, carrying just 100,000 passengers more than 11th placed Pegasus Airlines, which grew by 7.7%.

    This report ranks Europe’s top 20 airline groups by passenger numbers in 2018 and also includes a ranking of the top 20 individual airline brands.

    To read on, visit Europe airline groups 2018 ranking: Lufthansa group still at the top