ARC NEWS
2020 was worst for European airport traffic in 25 years
February 15, 2021
Trade body ACI Europe is calling for further financial support for European airports as they struggle for survival after a year in which passenger volumes fell back to levels last seen 25 years ago. Fresh data published by ACI Europe today shows a 70% fall in passenger numbers last year – a decline of 1.72 billion. ACI Europe director general Olivier Jankovec says: “With just 728 million passengers in 2020 compared to 2.4 billion passengers in the previous year, Europe’s airports were back to their traffic levels of 1995. ”No industry can on its own withstand such a shock. While some states have taken steps to financially support their airports, only €2.2 billion has so far been earmarked for that purpose in Europe. This is less than 8% of the revenues airports lost last year. “With further decreases in traffic over the past weeks and no recovery in sight, more needs to be done,” he states. ”Without more financial support, investments in decarbonisation, digitalisation and SESAR are at risk.” Airports within the EU were hardest hit, as passengers fell by 73%. Passenger numbers fell 62% at European airports outside the EU, notably driven by those in Russia and Turkey, which were helped by relatively strong and sizeable domestic markets. This is reflected in the major upheaval among the biggest airports in the region last year. Between them, the biggest hubs in 2019 – London Heathrow, Paris Charles de Gaulle, Amsterdam Schiphol, Frankfurt and Istanbul – lost 250 million passengers last year. By the fourth quarter, Istanbul was the only one of these hubs to feature among the biggest five airports, leading the way alongside Istanbul’s Sabiha Gokcen and three Russian airports – Sheremetyevo, Domodedovo and Vnukovo. Freight traffic has been less heavily impacted, but cargo volumes still fell 11.8% in in 2020. ”The recovery in freight traffic accelerated as of last September, with December seeing a marginally positive result,” ACI Europe notes.


US airlines lobby against Covid-19 test mandate
February 15, 2021
US airline executives have met with administration officials at the White House to lobby against a possible coronavirus testing requirement for all domestic air travellers. Airlines have been wary of such plans since an official at the US Centers for Disease Control and Prevention (CDC) revealed that the agency was actively looking at expanding the requirement to domestic flights, in late January. The US government has required Covid-19 tests for inbound international travellers since 26 January. Those passengers must present negative coronavirus test results (that are less than 72 hours old) before being permitted to board aircraft bound for US airports. “We appreciated the opportunity to meet with the administration this morning,” says Nicholas Calio, chief executive of trade group Airlines for America (A4A) on 12 February. “We had a very positive, constructive conversation focused on our shared commitment to science-based policies as we work together to end the pandemic, restore air travel and lead our nation toward recovery.” On 29 January, a coalition of travel industry lobby groups and unions, including A4A, had urged the new US administration to reject a coronavirus testing mandate for domestic air travel. More than 20 trade organisations wrote in a letter to the government’s Covid recovery team that such a measure would be superfluous and could cause further economic hardship. In the past weeks, airlines and unions have repeatedly stressed their opposition to implementing testing for travellers within the US. The Southwest Airlines Pilots Association says on 12 February that a domestic testing mandate “would decimate domestic air travel demand, put aviation jobs at risk and create serious unintended consequences”. “International travel demand is down as much as 48% since the implementation of a pre-departure testing requirement,” the union writes. “Decreases in domestic travel demand would run even higher as the cost of testing in many cases would exceed the cost of travel.” “This reality would simply cause travellers to choose an alternative method of travel with a much greater probability of exposure,” the union says. In addition, it would “overwhelm testing and lab resources” and draw resources away from institutions and organisations that need them more. In late January, several airline executives railed against the same threat during earnings calls, saying the burden for airlines would be cumbersome and expensive. Many airlines have said they have seen cancellations rise and bookings decrease after the new mitigation measures were announced. Legacy carrier Air Canada has come out in favour of broad-based testing across that Canada to replace the current strict 14-day quarantine requirement – for all international and some domestic travellers – that has been in effect since March 2020. During the airline’s earnings call on 12 February, Air Canada's chief executive Calin Rovinescu said a more-rigid testing regime might allow the government to relax some travel restrictions that have been in place for almost a year. The airline has suspended numerous flights to the US and international destinations in Europe, Latin America and the Caribbean, as well as to Asia. The flight suspensions are due to last until 30 April.


Air Namibia cancels all flights
February 12, 2021
Air Namibia has suspended operations and grounded its aircraft. "Effective Thursday, 11 February 2021, all flight operations will be cancelled, with all aircraft returning to base," the African carrier says in a Twitter posting. It adds that its reservation system for taking new bookings has also been suspended. Data shows that Air Namibia has a fleet of 10 jets, the majority of which are leased. Two of its Airbus A319s are managed by Deucalion Aviation Funds and form part of the DVB Bank-serviced DCAL 2015-1 asset-backed securitisation (ABS). Another two A319s are owned by the airline. One of its two A330s is leased from Castlelake while the other is part of the Castlelake-serviced CLAST 2019-1 ABS. The airline leases four Embraer ERJ-135s from Air France subsidiary Hop.


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