Passenger demand up a sixth in January: IATA
March 07, 2024
Global passenger demand, measured in revenue passenger-kilometres, grew by 16.6% year on year in January, according to IATA. The association says total capacity, measured in available seat-kilometres, was up 14.1% while load factors increased by 1.7 percentage points to 79.9%. Meanwhile international demand grew by 20.8% and capacity was up 20.9%. Domestic demand grew by 10.4% year on year, led by strong Chinese bookings around Lunar New Year. Capacity was up 4.6% and load factor increased 4.2 percentage points to 80.2%. For the Asia-Pacific region, traffic grew 45.4% in January while capacity was lifted 48.1%. European carriers' traffic was up 10.8% while capacity was increased 10.7%. Middle Eastern airlines posted a 16.2% rise in traffic and capacity rose 15.7%. North and Latin American carriers had a 12.3% and a 17.9% rise in traffic, respectively. Capacity increased 13.7% for North American carriers and 13.2% for Latin American airlines. African airlines saw a 18.5% traffic increase while capacity was up 19.2%. Load factors were highest in Latin America and Asia Pacific at 86% and 82.6%, respectively, while it was the lowest for African airlines at 73.3%. For European carriers, the load factor edged up 0.1 percentage points to 77.3%. It climbed 0.4 percentage points to 79.9% for the Middle East, while fell 1.0 percentage point to 79.4% for North American carriers.
Singapore conditionally approves Air India-Vistara merger
March 07, 2024
Singapore’s competition regulator has conditionally approved the merger of Air India and Vistara subject to carriers involved committing to maintain pre-Covid capacity on four direct flights. Air India is wholly owned by the Tata Sons conglomerate, while Vistara is 51% owned by Tata and the remainder held by Singapore Airlines. Once the merger is completed, SIA will have a 25.1% stake in Air India group. The commission had identified four routes from Singapore to New Delhi, Mumbai, Chennai and Tiruchirapalli as “routes of concern”, stating that despite “a number of competing airlines” operating on the route, the parties have sustained substantial market share in recent years. It adds that “price and capacity coordination between the parties arising from the confluence of the transactions would significantly restrict competition on the affected routes”. In addition to maintaining capacity at pre-Covid levels, the carriers must also appoint an auditor to monitor compliance and submit an annual written report, while individual airlines will also submit an interim report that monitors respective compliance for every three weeks of non-fulfilment in a year. Schedules show that as of March 2024, there are 172 flights per week from Singapore to the four destinations. Of these, SIA and its subsidiary Scoot, Air India and its subsidiary Air India Express and Vistara operate 135 flights, with IndiGo operating the remaining. Vistara's shareholders SIA and Tata Sons agreed to merge with Tata-owned Air India in November 2022, intending to complete the merger by March 2024 subject to regulatory approval. India's competition commission had approved the merger in September 2023. Speaking in late February, Air India chief executive Campbell Wilson touts the merger as “a strengthening of competition”, saying that the merged entity will be a “robust airline that is able to compete more effectively”. He believes it will also “bring professionalism and structure to a market which has historically seen chaos and rapid entry and exit of airlines, holding back the country and ecosystem back from reaching its potential”.
Ethiopian orders 777X fleet
March 06, 2024
Boeing has won an order from Ethiopian Airlines for up to 20 777-9 jets. The deal includes the purchase of eight 777-9s with provisions to potentially add another 12 aircraft to the order, the US airframer says, noting that Ethiopian has thus become the first African customer for the in-development long-haul jet. "The 777-9 offers more flexibility, reduced fuel consumption and carbon emissions," states Ethiopian group chief Mesfin Tasew. "We eagerly anticipate flying the 777-9 across the African skies and beyond." Boeing did not disclose a delivery schedule for the aircraft. Fleets data shows that Ethiopian's passenger fleet comprises six 777-200LRs, four 777-300ERs, 19 787-8s, 10 787-9s, one 767, 17 Max 8s, 11 737NGs, 20 Airbus A350-900s and 28 De Havilland Canada Dash 8-400 turboprops. It additionally has 10 777Fs plus two 767 and four 737NG converted freighters. Ethiopian has another 35 Max 8s, 11 787-9s, four 777Fs, 11 A350-900s and four A350-1000s on order.