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    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.


    Munich Airport – steady growth but limited by third runway denial

    Munich Airport has grown to be Germany’s second airport, with a wide and growing range of short, mid, and long haul services, many of them provided by Lufthansa and its subsidiaries. There are several countries in Europe where support from the national carrier beyond the primary airport to this degree would be appreciated.

    In 2018 Munich achieved a satisfactory set of financial results, allowing for the fact that the German economy shrank, as did others in Europe. According to its passenger and cargo growth, Munich can consider itself to be the second primary German airport after Frankfurt.

    Munich’s route map is quite comprehensive in 2019 and in some respects mirrors that of Frankfurt, although the number of destinations served is lower and there are clear service gaps, such as in Africa and Latin America.

    The airport has also reduced carbon emissions per passenger from 5.67kg in 2005 to 3.24kg in 2018 and is on track to achieve carbon neutral status by 2030.

    Construction of the third runway remains of paramount importance though, and the “most strategically important expansion project” for the airport. In the immediate future, it faces the challenge of not being able to start that project for five years.

    To read on, visit Munich Airport – steady growth but limited by third runway denial


    Lille Airport privatisation – Eiffage and Marseille Airport selected

    France’s stop-start airport privatisation programme, which has been influenced by political, economic and financial events and has seen the first deal, Toulouse Airport, being put back to the market again, is starting to pick up again after a couple of years in abeyance.

    Ironically, the potential buyer of CASIL Europe’s stake at Toulouse is Eiffage, which has just won, in a joint venture, the concession on Lille Lesquin Airport.

    Rather than Marseille or Bordeaux airports, which were expected to be next, the programme has restarted with Lille Airport, a smaller airport but one that could benefit from the experience this joint venture between Eiffage and Marseille Airport would bring.

    It also acts as a pointer towards how the privatisation of larger airports like Marseille and Bordeaux might progress.

    To read on, visit Lille Airport privatisation – Eiffage and Marseille Airport selected


    Canada domestic market: ULCCs work to break market dominance

    Canada is one of the rarer markets in the industry – long dominated by two airlines.

    Changes began to take shape seven years ago when the country’s low cost airline WestJet launched a new regional subsidiary in 2013 to inject some competition against Air Canada on smaller routes that were too thin for WestJet’s Boeing 737 narrowbodies.

    More recently, the ULCC model has debuted in Canada with Flair Airlines’ transition to the ultra low cost model and WestJet creating its own ULCC subsidiary Swoop. A third ULCC, Jetlines, plans to make its debut later this year from Vancouver International airport.

    There is definitely no shortage of ambition among the new start-ups and some airports are benefitting from more operators entering the market, but point-to-point service between secondary airports in Canada remains a challenge as the ULCCs believe there are traffic stimulation opportunities in some of the larger metropolitan areas.

    To read on, visit Canada domestic market: ULCCs work to break market dominance


    Cleveland Hopkins airport: riding a wave of momentum from ULCCs

    Cleveland Hopkins International airport joined former hubs in Cincinnati and Pittsburgh in taking spots in OAG’s fastest growing North American mid-sized airports in 2018. All three of those airports were ranked in the top ten, posting double digit seat growth.

    Cleveland’s passenger levels in 2018 were nearly the highest in nine years, and the airport’s management is confident that passenger throughput will reach 10 million in 2019.

    The airport’s renaissance is largely driven by the growth of low cost airlines; LCCs and ULCCs represent nearly half of Cleveland’s seats, and their increased presence is resulting in Cleveland attracting a larger of number of travellers based in Northeast Ohio.

    Although Cleveland no doubt has aspirations to gain more international service, for now the airport seems focused on expanding the breadth and depth of its domestic offerings.

    To read on, visit Cleveland Hopkins airport: riding a wave of momentum from ULCCs


    Flying Boeing’s 737 MAX: FAQs

    Questions around the restoration of Boeing’s new flagship aircraft, the 737 MAX, to service seem to get more complex by the day.

    Without addressing the more complex and controversial aspects surrounding the aircraft, this short CAPA summary attempts to address at least some of the questions being more commonly asked, in 737 MAX FAQs.

    To read on, visit Flying Boeing’s 737 MAX: FAQs


    Royal Jordanian Airlines: narrowbody fleet renewal, market share down

    Royal Jordanian is preparing to embark on a major narrowbody fleet renewal project aimed at improving the airline’s efficiency and inflight product. The airline has been evaluating the A220, A320neo, 737 MAX and E190-E2 families, and plans to place an order within the next couple of months for 22 new generation narrowbody aircraft for delivery from 2020 to 2025.

    The 22 aircraft will replace Royal Jordanian’s existing single aisle fleet of 16 aircraft (12 A320ceo family aircraft and four E170/E190-E1 family aircraft) and provide a modest amount of growth.

    Royal Jordanian only plans to grow capacity by 18% over the next five years with virtually all the growth occurring in the short and medium haul segments as the airline is not intending to expand its widebody fleet beyond the current seven 787-8s. Growth of less than 4% per annum will result in further market share declines for Royal Jordanian, which has already experienced a more than 20ppt drop in market share over the past decade.

    The airline is focused on improving its profitability rather than expansion – a sensible strategy, given the intensifying competition in its home market due to rapid expansion from LCCs and Gulf airlines. Royal Jordanian has been increasing its reliance on sixth freedom transit traffic, particularly to/from the Levant region, as it is difficult competing against LCCs for local traffic to/from Jordan.

    Royal Jordanian has also been working to reduce its costs and improve its efficiency. The new, more fuel efficient, narrowbody fleet will further support these efforts and will support ongoing efforts to increase yields as its product will improve.

    To read on, visit Royal Jordanian Airlines: narrowbody fleet renewal, market share down