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.

    Brazil: aviation market ripe for more growth and some promising signs

    Brazilian aviation is a study in contrasts. With Brazil being Latin America’s largest aviation market, the opportunity in the country is tremendous – trips per capita remain well below more mature markets, despite a more than doubling of passenger levels during the past decade.

    That growth has occurred against a backdrop of tough operating conditions for Brazil’s airlines as the structural costs of doing business in the country remain high.

    But there are signs of improvement surfacing, including the country’s government blocking efforts to reintroduce a free baggage requirement, and the consideration of eliminating some taxes. Those signs are fostering optimism that Brazil can reach its full passenger potential, but there remains uncertainty that recent reforms will have staying power.

    To read on, visit Brazil: aviation market ripe for more growth and some promising signs

    Disruption in the accommodation industry – the lines blur

    It is always easy to tell that ‘disruption’ has turned into normality when organisations start to legislate for it.

    The travel and transport industries are full of such disruption at the moment: Unmanned Aerial Vehicles (inadequate response); self-connection (left to a few large airports, most do not formally cater for it); the sharing economy; (and the daddy of them all) the environment (uncoordinated, ineffectual response to protests).

    The UN World Tourism Organisation (UNWTO) has recently published a report – ‘New Business Models in the Accommodation Industry’ – which provides a systematic overview of the ways that both national governments and local authorities are “addressing” and managing new business models in the accommodation industry.

    The UN is doing this just as a new variation on disruption shifts into gear – with accommodation sharing agencies such as Airbnb entering the hotel sector and some hotel groups targeting the sharing sector.

    To read on, visit Disruption in the accommodation industry – the lines blur

    UK’s international hub airport not Heathrow. Amsterdam still main hub

    In addition to being a gateway to/from London, a city with more airline seats than any other in the world, London Heathrow Airport is also the UK’s main international hub.

    According to OAG data for the week of 12-Oct-2019, London Heathrow Airport has direct links with nine UK regional airports (i.e. excluding London). It is feed from these nine airports that gives Heathrow its UK hub status.

    However, there are 20 airports in other Western European countries that have direct flights to more UK regional airports than Heathrow has (week of 12-Oct-2019, source: OAG): seven of these have at least double Heathrow’s regional UK links, led by Jersey, with 21.

    The majority of these airports are southern European leisure destinations and they do not threaten Heathrow’s hub status. However, three important European hubs have more UK regional links than Heathrow: Amsterdam (20), Dublin (18) and Paris CDG (14).

    Amsterdam and Paris CDG both offer large global networks and each has more destinations than Heathrow in Africa and Latin America, while Dublin has a strong North American niche. In addition, although Madrid, Munich and Frankfurt have fewer UK regional links than Heathrow, these hubs each serve at least one UK airport with no direct Heathrow flights.

    To read on, visit UK’s international hub airport not Heathrow. Amsterdam still main hub

    Etihad leads Gulf 3 & THY on Europe codeshare; Qatar Airways closing

    Etihad Airways has expanded its codeshare agreement with TAP Air Portugal from 27-Oct-2019. Under the new arrangements, TAP will carry Etihad’s EY code on nine additional routes from Lisbon and on one additional route from Porto (to London Gatwick).

    The partnership gives each access to the other’s networks, although it is heavily skewed towards routes where TAP carries the EY code and both airlines have multiple codeshare partners on several of the partnership routes. Moreover, it could have greater power if Etihad served Lisbon and if TAP served Abu Dhabi.

    After the unravelling of Etihad’s equity strategy, codeshare remains an important tool for the airline to enhance its access to Europe. Among the four superconnectors (the Gulf three of Emirates, Qatar Airways and Etihad plus Turkish Airlines), Etihad has the most codeshare partners and destinations in Europe.

    However, Qatar Airways has added the most codeshare destinations in Europe over the past five years, while also growing its own network in Europe. Indeed, Qatar Airways appears to be going further than the others in growing through a balance between own network, codeshare, equity stakes and global alliance membership.

    To read on, visit Etihad leads Gulf 3 & THY on Europe codeshare; Qatar Airways closing