ARC NEWS
​Aeroflot to reinstate Hong Kong service
September 22, 2023
Aeroflot is planning to resume flights between Moscow and Hong Kong from 23 December. The Russian carrier says it will fly on the route thrice weekly from Moscow's Sheremetyevo International airport. The service will be operated using Airbus A330 equipment.


Boeing raises China’s 20-year aircraft demand outlook to 8,560
September 21, 2023
Boeing has raised its forecast for China’s new aircraft demand in the next 20 years, driven by increasing demand for domestic air travel and economic growth that is "well above" the global average. Chinese airlines will need 8,560 new commercial aircraft through 2042, which is higher than the 8,485 aircraft it predicted in 2022, but lower than the 8,700 forecast in 2021. It is also higher than the 8,090 new planes it projected in 2019. "Domestic air traffic in China has already surpassed pre-pandemic levels and international traffic is recovering steadily," Boeing vice-president, commercial marketing Darren Hulst says. Its domestic aviation market is projected to be the largest in the world by 2042, which will help power demand for 6,470 single-aisle aircraft, says the airframer in its 2023 Commercial Market Outlook (CMO). Moreover, it is expected that Chinese carriers will require 1,550 widebody aircraft mainly to support a growing network of international routes. China is expected to account for 20% of the world's aircraft demand through 2042 and its commercial fleet will more than double to nearly 9,600 jets over the next 20 years. "Fleet growth will drive two thirds of forecast deliveries in China, while the remainder will replace older jets with modern aircraft that increase efficiency and reduce CO2 emissions," it adds. Boeing says it expects an annual fleet growth of 4.5% in China, and an annual traffic growth of 11.4%, which puts it on course to compete with North America as the largest aviation market during the forecast period. The commercial fleet will require $675 billion in aviation services including maintenance, repair, training and spare parts over the forecast period. Boeing says continued growth in e-commerce and express shipping will also drive demand for 190 new freighter deliveries. The report also anticipates that the country will require 433,000 new aviation personnel including 134,000 pilots, 138,000 technicians and 161,000 cabin crew members to serve its growing market.


​Italy opens investigation into Ryanair's market reach
September 21, 2023
The Italian Competition Authority (AGCM) has opened an investigation into claims that Ryanair is engaging in an "abuse of its dominant position" in air transport to secure an advantage in related sectors, such as hotels and car rental services.
The AGCM says it has received "several reports" that Ryanair’s activities are harming travel agencies in particular. "In AGCM's preliminary view, Ryanair DAC is leveraging on its dominant position in several markets of [the] air transport sector in order to extend its market power [and] also into the offer of other tourist services (such as hotels and car rental)". The regulator says that there is evidence this is "harming travel agencies – both online and offline – as well as clients that buy from such agencies those other services". The authority continues that Ryanair "appears" to prevent travel agencies from buying air tickets directly through its websites, leaving them to purchase fares via its distribution platform at a higher price. AGCM believes this could have a negative impact on travel agencies and consumers, making it difficult to manage their bookings as well as charging them a higher price. Ryanair has been approached for comment. The move could signal a greater role for the AGCM in regulating the airline industry, with Reuters reporting on 20 September that the Italian government would entrust the regulator to manage pricing on domestic flights to islands such as Sicily and Sardinia. In early-August, Italy said it would regulate to cap prices on services to Sardinia, a move that was dismissed as “illegal” by the carrier that would reduce competition to the island and ultimately drive prices higher. It called on the European Commission to investigate. Ryanair later cut its capacity to the island by 8%.


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