Passengers Unwilling To Fly Now

People are less willing to fly now than they were at the height of the coronavirus lockdown, according to research carried out for the airline industry’s main trade group.

Only 45 per cent of those polled in late May and early June said they’d be prepared to board a plane within one or two months of restrictions being lifted, down from 60 per cent in April, the International Air Transport Association said on Tuesday.

If anything, consumers have actually got rather more cautious and we have a majority saying now that they would wait more than six months before travelling, IATA Chief Economist Brian Pearce said in a press briefing. The survey is telling us that passengers are rather cautious.

Airlines around the world have been hit hard by the coronavirus outbreak, and signs are the recovery won’t be quick.

Other indicators also point to an uncertain demand environment. New bookings are down 82 per cent from a year ago, according to IATA, improving only slightly from a low point in April.

Reservations are also being made far later, with 41 per cent of people booking within three days or less of their journey last month, compared with 18 per cent in 2019. Demand for long-haul flights remains close to zero.

The trade group, which represents 290 airlines, called for an extension to waivers of the so-called use-it or lose-it airport slot rule through the winter season in light of the lack of forward visibility.

The rule, requiring carriers to use 80 per cent of slots, has been suspended through October 24 in the European Union.

That will give airlines the flexibility they need to focus on meeting passenger demand as it evolves, free from the burden of trying to predict what their schedule might look like a year from now, IATA Chief Executive Officer Alexandre de Juniac said.

IATA forecasts airlines will lose a combined $US84 billion ($122 billion) this year and almost $US16 billion in 2021, more than three times the outflow after the 2008 slump.

Declining fares mean they’ll need to fly 80 per cent full just to break even, so that most will carry on losing money even as services resume, it said, predicting yields will be down 18 per cent globally this year.

ZIMBABWE: Air Zimbabwe Blessed With Duty Free Importation Of Spares

Efforts to improve the operations of Air Zimbabwe have received further boost following revelations that Government recently extended the dispensation for the national air carrier to import spares duty free.

Through statutory instrument 92/2019 Customs and Excise – Duty Rebate for Air Zimbabwe the Government extended, for the whole of 2019, the existing rebate on engine spares and aircraft components for Air Zimbabwe.

The debt ridden State owned airline was placed under the administration of Grant Thornton with effect from October 4 2018, amid a string of losses, in terms of the Reconstruction of State-Indebted Insolvent Companies Act.

Administrator Reggie Saruchena late last year said Air Zimbabwe revival was possible; promising a turnaround.

He said he had previously handled similar challenges. As operational and viability problems mounted at the national airline, Air Zimbabwe's passenger numbers plunged to about 230 000 per annum from a peak of 1 million in 1996.

Air Zim has also been struggling to meet its external obligations resulting in it being suspended from international aviation bodies, whose membership is critical for its global routes.

Air Zim assistant administrator Tonderai Mukubvu said that extension of rebate was welcome as it reduces the cost of aircraft maintenance.

The removal of import duty takes away a significant cost of maintenance. For instance, if a spare part costs US$4, it means that this reduces the cost of maintenance by the equivalent of the duty, Mr Mukubvu said in an interview.

Air Zim spares must all be imported because we do not have any local manufacturer, as such the removal of the duty cuts down on the foreign required to import from wherever since the duty is also charged in forex, he added.

He also said that the extension of the duty rebate on spares and components will enable the airline to save foreign currency.

The airline currently has two functional aircraft; one flying and servicing domestic and regional routes and another currently grounded and undergoing maintenance procedure, C-check.

Delivery of an Embraer ERJ 145 aircraft from the US is expected in the next two weeks to increase its fleet of functional aircraft, making the rebate handy.

Further, reports earlier this month indicated that the airline was due to take delivery of two Boeing 777-200 ERs acquired from Malaysia, as part of efforts to boost its fleet.

Mr Mukubvu said a reduction in the amount of foreign currency required to import critical spares, as Zimbabwe faces forex shortages, will reduce the overall cost of maintenance by an equivalent factor.

Mr Mukubvu said the company was operating two aircraft while a third, an Embraer ERJ 145 was expected in Zimbabwe in a fortnight and would also benefit from the import duty rebate on spares and engine components.

Air Zim is saddled with a US$341 million debt accumulated over a decade of mismanagement. The inability to repay debts left the airline unable to meet its obligations to global aviation bodies.

Air Zim is now battling to attain recertification under the International Air Transport Association operational safety audit and European Aviation Safety Agency (EASA) after losing its rights as a result of failing to pay its dues.

IATA is an association of the airlines from across the globe, representing 275 airlines or 83 percent of total air traffic. The association supports many areas of aviation activity and helps to formulate industry policy on critical aviation issues.

One of Air Zimbabwe's long haul aircraft, a Boeing 767-200 was impounded by American General Supplies at Gatwick International Airport in London in December 2011 over debts amounting to $1,2 million.

In 1980, Air Zimbabwe had 18 aircraft flying into 31 destinations but is now limited to Harare-Johannesburg; Harare-Bulawayo and Harare-Victoria Falls routes.


Tourism Observer

ZIMBABWE: Troubled Air Zimbabwe

The national airline Air Zimbabwe has been operating one aircraft the B767-200ER and the plane is suffering from an engine technical failure it has emerged.

In a statement issued on Thursday, Air Zimbabwe said, The aircraft had to undergo an engine change on Sunday 3 March.

The engine process could however not be completed within the projected time due to unforeseen circumstances.

This has resulted in serious disruptions as most flights had to be rescheduled.

There are reports that Air Zimbabwe left its passengers stranded in Johannesburg on Tuesday night by flying out four hours early.

Air Zimbabwe further said the alternative arrangement is being made for any passengers that are not reachable on the contact details submitted to the Airline at the point of ticketing.

Air Zimbabwe (Pvt) Ltd operating as Air Zimbabwe is the national carrier of Zimbabwe, headquartered on the property of Harare International Airport, in Harare.

From its hub at Harare International Airport, the carrier used to operate a network within southern Africa that also included Asia and London-Gatwick.

Following financial difficulties, Air Zimbabwe ceased operations in late February 2012. Serving a reduced domestic network, the carrier resumed operations for a short period between May and early July 2012, when flights were again discontinued.

Some flights were restarted on a discontinuous basis in November that year. The airline resumed operating some domestic routes as well as the regional service to Johannesburg on a daily basis in April 2013.

The company was a member of the International Air Transport Association, and of the African Airlines Association since 1981.

In February 2004, it was revealed that the company had been temporarily suspended by the IATA over unpaid debts.

In late October 2006, the prices of Air Zimbabwe tickets increased up to 500%, partly due to the inflation in the country rising to over 1,000% at that time the Zimbabwean Central Bank stated that it could not continue supporting Air Zimbabwe and other money-losing state companies—and partly because the airline was in need of foreign currency to pay for fuel, spare parts, and catering.

A foreign exchange crisis in the country led to the cancellation of the carrier's operations in late 2005, following the lack of hard currency to pay for the fuel. In 2006, it was disclosed that passenger numbers had fallen from 1 million in 1999 to 23,000 in 2005.

In May 2011, the airline was suspended from IATA's international financial and booking system over unpaid booking fees. It was announced in early November 2011 that the government would absorb a US$140 million debt in order to make the company more attractive to foreign investors.

Already in December 2011, the carrier struggled to provide its regional and overseas services amid aircraft impoundments over unpaid debts.

In January 2012, the airline came under judicial management. Following a failed revival attempt, in which the pilots refused to resume domestic services over US$35 million in unpaid salaries and allowances, it was announced on 24 February 2012 that Air Zimbabwe would be grounded indefinitely.

In March of the same year, the government of Zimbabwe established Air Zimbabwe Private Limited as the new owner of the carrier after disbanding the airline's former parastatal owner Air Zimbabwe Holdings and absorbing a US$150 million debt.

The airline resumed flying on a continuous basis in early May 2012, yet using a single aircraft and serving only three domestic destinations Bulawayo, Harare and Victoria Falls and only for a short period of time until the grounding of the aircraft on 2 July 2012.

The airline was reactivated in late November 2012, with a reduced flight scheme serving the Harare–Johannesburg route.

Reports then indicated the carrier resumed domestic operations connecting Bulawayo, Harare and Victoria Falls, as well as the regional route to Johannesburg, on a daily basis in April 2013, ahead of the 2013 Zimbabwe International Trade Fair.

As of July 2017, Air Zimbabwe's debts were estimated to be US$330 million.

Approximately 600 employees out of more than 1,000 had been laid off by late May 2013 as part of cost-cutting measures aimed at recapitalising the airline.

The Zimbabwe Tourism Authority revealed in June 2013 that the airline's market share suffered a steep decrease in the year ending 31 December 2012, with a 0.8% participation in this period down from 27% in the same period of 2009.

On 8 June 2018, it was reported that Air Zimbabwe had debts of more than $300 million and could no longer fly to most destinations due to threats by debtors to impound its aircraft.

With mounting debt and only three of its aircraft operational, the airline was put under administration on October 6, 2018.

In May 2017 Air Zimbabwe was added to the list of air carriers banned in the European Union as a result of not meeting EU safety standards.

Since March 2012 the airline has been operated through Air Zimbabwe Private Limited, which is wholly owned by the Zimbabwe Government, although there have long been plans to privatise the airline in some degree.

Chipo Dyanda is the airline's chairwoman, as of July 2017.

In October 2016, Simba Chikore was appointed to be the Chief Operating Officer (COO), amid much controversy and accusations of nepotism as he is also the son-in-law to then Zimbabwean President Robert Mugabe. Simba resigned from Air Zimababwe in November 2017.

Air Zimbabwe has been loss-making for many years, with irregular services. Although the airline is government owned, full annual reports have not been published; audited accounts were last presented in 2008.

The Harare–Beijing service was launched in November 2004, following an increase of the Chinese–Zimbabwean economic ties. Likewise, the carrier added Kuala Lumpur to its network in 2009.

A capacity boost was disclosed to occur on the Harare–London-Gatwick route effective 1 April 2011. The Harare–London route that was once served by both British Airways and Air Zimbabwe had become one of the most lucrative routes for Air Zimbabwe since the British carrier discontinued the service in 2007.

It was revealed in February 2011 that the airline temporarily suspended its flights to Johannesburg over likely impoundments of its planes by creditors due to unpaid debts.

Regional and domestic services were suspended for a short period in May 2011, following both the grounding of its Boeing 737-200 fleet by the Civil Aviation Authority of Zimbabwe (CAAZ) over maintenance concerns, and the impoundment of a leased aircraft from Zambezi Airlines over a US$460,000 unpaid debt.

Operations resumed in late May 2011, following an agreement between the two airlines, yet the aircraft was repossessed by the owner in late June 2011.

In mid-June 2011, flights to London and South Africa were temporarily suspended because of a due debt with fuel suppliers. Owing both to the grounding of the 737-200 fleet and to fuel shortages in the country, domestic services were suspended and regional flights were operated on an irregular basis.

The airline started regularising medium- and short-haul operations in July 2011, as it got clearance from the CAAZ to operate one of its three grounded 737-200.

Operations were discontinued again in late July 2011, this time due to a pilots' strike, resuming in mid-September after a 50-day-long strike.

Once again, overseas and domestic flights were temporarily cancelled in early November 2011, this time owing to an unpaid debt with fuel providers.

Overseas routes resumed on 11 November 2011. However, flights to the United Kingdom and South Africa were suspended in January 2012 over likely impoundments of the airline's aircraft for outstanding debts.

According to the Aviation Safety Network, the company has not had a fatal accident since Air Rhodesia was renamed Air Zimbabwe in 1980.

July 1984: A Vickers 756D Viscount, registration Z-YNI, was damaged beyond repair in an incident on the grounds of Harare International Airport. It was withdrawn from service and transferred to the airport fire department for use as a training aid.

In June 1999 the Chicago Tribune published a story, later withdrawn, in which the reporter Gaby Plattner claimed she had flown from Kariba to Hwange on an Air Zimbabwe service, and that the flight departed without a co-pilot, and during the flight the pilot was locked out of the cockpit, and had to use an axe to chop down the door.

The newspaper later stated that this story was untrue. The carrier then sued the Chicago Tribune and also CNN, after it ran a story claiming it was the most dangerous airline in the world.


Tourism Observer

SRI LANKA: SriLankan Airlines Operational Safety Audit Registration 2018-2019 Not Renewed By International Air Transport Association (IATA).

SriLankan Airlines revealed that its fleet has one Airbus A330-200 aircraft bearing the serial number MSN-1008 and CAASL registration number 4R ALS that is not currently being used due to several reasons.

The airline said they have removed one of the engines from this aircraft and fitted it to another aircraft as one of its engines is undergoing some maintenance work.

SriLankan Airlines, however, said the management is exploring the possibility of sub-leasing this aircraft to a charter operator or to another airline.

These parts would be replaced prior to the aircraft being leased to another airline, once such a lease agreement is signed for the use of this aircraft, the airline said.

The present management stresses that it was not involved in the decisions with regard to the ordering of the A350-900 aircraft, which took place in 2013; or the cancellation of the order in 2016; or of the acquisition of the A330-200 aircraft 4R ALS which is unsuitable for the airline’s present business model.

The clarification came after the press reported that SriLankan’s operational safety audit registration has not renewed by International Air Transport Association (IATA).

The newspaper reported that the airline has not renewed SriLankan Airlines’ registration for 2018-2019 under its Operational Safety Audit (IOSA), prompting several foreign operators to suspend code-sharing with the carrier until it complies with IATA strictures.

The full statement is reproduced below.

Airbus A330-200 aircraft 4R ALS

Colombo, January 18, 2019: SriLankan Airlines wishes to clarify its position with regard to the utilization of one of its Airbus A330-200 aircraft bearing the serial number MSN-1008 and CAASL registration number 4R ALS.

This aircraft was acquired in 2017 as part of the conditions agreed to between the previous management of the airline and aircraft lessor Aercap, as a settlement against the cancellation of the order of four new Airbus A350-900 aircraft.

However, the cabin configuration of this aircraft, which was manufactured in 2009, is not suitable for SriLankan Airlines’ operations, having many seats and minimum space between seats in its Business Class cabin.

All other aircraft in the SriLankan Airlines fleet operate a two-class configuration of Business and Economy classes, with a particular standard of comfort in seating.

The previous management therefore took a decision to lease this aircraft to a European airline. However, after some time, this European airline violated the lease agreement by defaulting on the lease payments.

The lessee also did not fulfill its obligations under the lease contract to prepare the aircraft for the handover. The engineering team at SriLankan performed the required maintenance checks to make the aircraft ready to fly.

The management is also exploring the possibility of sub-leasing this aircraft to a charter operator or to another airline. Until such time, the aircraft remains at BIA as part of the SriLankan fleet, although it is not in use due to the above-mentioned reasons.

It is a standard practice in most airlines that various interchangeable parts or components such as the engines that are urgently required for an operational aircraft are taken out of aircraft that are not in immediate use, if such parts are not at the time in stock in the airline’s spare parts stores.

SriLankan has removed one of the engines from this aircraft and fitted it to another aircraft as one of its engines is undergoing some maintenance work. These parts would be replaced prior to the aircraft being leased to another airline, once such a lease agreement is signed for the use of this aircraft.

The present management of SriLankan Airlines wishes to stress that it was not involved in the decisions with regard to the ordering of the A350-900 aircraft, which took place in 2013; or the cancellation of the order in 2016; or of the acquisition of the A330-200 aircraft 4R ALS which is unsuitable for the airline’s present business model.

The management is attempting to optimize the usage and return on investment on this aircraft, as with any other asset of the airline. Management is also taking the necessary steps to recover the losses to the airline from the relevant parties.


Tourism Observer

TANZANIA: Air Tanzania Acquires 787 Dreamliner

Tanzania will finally take delivery of its first Dreamliner aircraft this coming Friday July 6, following two intense years of planning the revival of the national carrier Air Tanzania.

The aircraft, baptised Kilimanjaro-Hapa kazi tu, successfully underwent its maiden runway test flight at the Paine field in Seattle, Washington state.

It was seen at the Paine field undergoing pre-delivery tests on Monday.

The aircraft's delivery will signal a major shift in Tanzania's aviation sector that will see the national career start operating intercontinental flights later this September, with a maiden flight to Mumbai.

This is a major boost to the fortunes of the carrier, revived barely two years ago, as it seeks to play a bigger role in the regional aviation market dominated by Ethiopia, Kenya and Rwanda.

Last week, the airline's commercial and business development director Patrick Ndekana said that the Dreamliner aircraft will fly to Mumbai thrice a week starting September, its first route outside the continent.

In March, Air Tanzania announced that the 787 Dreamliner will be its flagship as it renews and grows its fleet.

The fleet improvement programme includes the purchasing of six aircraft. These include three Bombardier DASH8 Q400, two of which were delivered in September 2016, and now use for domestic routes between Dar es Salaam and the Comoros islands, Mwanza, Kigoma and Mtwara.

It also received one Bombardier DASH8 Q400 in June last year. The improvement plan shows that by July this year, Air Tanzania will be operating a fleet of seven aircraft as it has been operating one Bombardier DASH8 Q300 since 2011.

We aim to establish our long-haul capability by starting flights to Europe, Asia and the US in the short term and the 787 Dreamliner is the perfect aircraft to achieve this ambition, chief executive officer Ladislaus Matindi said.

The airline will also receive two more new Bombardier CS300 after the Tanzania Government Flight Agency finalised purchase agreements with US manufacturer Boeing Commercial Airplanes and Canada's Bombardier Inc.

Two years ago Tanzania decided to develop a specific programme for revamping its national carrier which included purchasing of six new aircraft between 2016 and 2018, paying off debts, provision of startup capital, improvement and modernisation of business systems.

Mr Matindi said that the Bombardier C300s will be used to open up to six regional routes in southern and West Africa as the airline tries to capture a share of these markets.

We are looking at South Africa, Zambia and Zimbabwe and in the future expanding to West Africa with Ghana and Nigeria.

We will however use the Dreamliner for intercontinental routes to China and India initially, followed by Europe in the second phase.

We are already in talks with Boeing and the government to have a second delivery of the same aircraft in the near future, Mr Matindi said.

Air Tanzania is also expecting to undergo the Operational Safety Audit (IOSA) certification before the end of July, which will enable it enter into commercial partnerships with other operators as it seeks to grow its revenue via code share agreements.

The International Air Transport Association's IOSA is an evaluation system designed to test the operational management and control systems of an airline, putting it at par with the international aviation standards.

We already have a strong business plan and given that we are a great tourism destination, we believe that we will have the right mix of passenger numbers and capacity to support this plan, Mr Matindi said.

On Tanzania’s domestic routes, Air Tanzania will compete with Kenya Airways which partly owns Precision Air and the troubled Fastjet.

The latter two airlines operate domestic Tanzanian routes between Dar es Salaam and Mwanza, Kilimanjaro, Mbeya and Zanzibar. Fastjet also flies to Southern Africa from Dar es Salaam with South Africa, Zambia and Zimbabwe featuring on its regional routes.


Tourism Observer

Governments Urged To Release $5bn Airline Revenues, Venezuela, Angola, Sudan, Bangladesh And Zimbabwe

Countries from Angola to Venezuela owe nearly $5 billion (Dh18.4bn) in local ticket sales to international airlines including Lufthansa, Air France-KLM and Emirates as the governments struggle with currency controls.

The total amount of funds blocked by 16 countries, mainly Venezuela, Angola, Sudan, Bangladesh and Zimbabwe, has dropped 7 per cent at the end of 2017 compared to a year ago, the International Air Transport Association said.

The industry body renewed calls to the governments to respect international treaties and allow foreign airlines to repatriate these unlocked revenues.

In Venezuela’s case we do not see in the short run any solution frankly, to be realistic, but we will not give up, Alexandre de Juniac, director general of IATA, said in a media briefing at the conclusion of the IATA annual meeting in Sydney.

Airlines have been struggling to get ticket revenues out of oil dependent countries such as Angola, Africa’s second-biggest oil producer, after a 2014 collapse in crude oil prices dried up foreign reserves of dollars, euros and major currencies.

In 2017, Emirates scaled back its five weekly flights to Angola’s capital Luanda to three citing difficulties in repatriating funds.

Venezuela alone owes $3.78bn to international airlines, followed by Angola where about $386 million remain blocked.

Sudan is withholding $170m, followed by Bangladesh with $95m and Zimbabwe with $76m, Iata said.

Venezuela, which has more oil than Saudi Arabia and was once one of the richest economies of Latin America, is now plagued with shortages in basic goods from food to antibiotics.

The sharp drop in oil prices in 2014 has led to an economic downward spiral in the country.

Inflation exceeded 2,400 per cent in 2017 and would worsen in 2018, the International Monetary Fund estimated.

Mr de Juniac said a solution is unlikely soon in Venezuela, given its deepening economic crisis, but remains hopeful for progress in other countries.

We are encouraged by the recent developments in Nigeria and Angola, and hope other states will also move quickly to address blocked funds, he said.

Egypt has already paid in full its obligations to international airlines, while a $600m backlog in Nigeria was cleared and Angola released $120m from the peak of more than $500m it owed, Iata said.


Tourism Observer

International Air Transport Association Warns Governments Against Privatising Airports

The International Air Transport Association (IATA) has warned governments against privatising airports in a bid to upgrade them.

Several governments in Europe and America have either fully or partially sold airports to the private sector to inject funds for giving the facilities facelift as passenger numbers rise.

It is important that governments take a long-term view focusing on solutions that will deliver the best economic and social benefits.

Selling airport assets for a short-term cash injection to the treasury is a mistake, said Alexandre de Juniac, IATA’s Director General on Monday.

IATA added that short-term financial gains based on poorly-thought out privatisation moves run the risk of un-doing long-term social and economic benefits that can be achieved through well-thought decisions.

According to data by the Airports Council International, passenger numbers at the world’s 20 busiest airports grew to 1.5 billion last year, an increase of 5.2 per cent from 2016.

At least 40 per cent of European airports are partly under private ownership, through long-term leasing or concession, says the Annual Privatization Report on air transport released in April.

Leading airports such as Heathrow and Zurich are fully privately owned while in Africa, Cape Town International Airport is partially under private ownership.

Last year, Nigeria opened up ownership of all government-owned airports to private investors as part of reviving the facilities that for years have suffered neglect and dilapidation.

German government sold 82.5 per cent of its ownership in Frankfurt Airport to HNA Airport Group of China last year.

France started efforts to sell 50.6 per cent of its ownership in Aeroports de Paris for 8 billion euros ($9.36 billion) in March.

In Serbia, airports concession holder and operator Vinci Airports secured a 25-year concession for ownership of Nikola Tesla Airport in Belgrade, in January.

Under the deal, the private firm will spend $1.2 billion to upgrade the terminal and runaways while paying the government $500 million.

Juniac added that privatisation does not guarantee solutions for airport challenges globally.


Tourism Observer

QATAR: Qatar Airways CEO Apologizes For Saying A Woman Couldn’t Do His Job

The CEO of Qatar Airways, where women make up nearly half the company’s workforce, apologised for saying that a woman couldn’t do his job because it was very challenging.

The airline was also the first to employ female pilots and one of the first to train female engineers, the CEO said.

Qatar Airways posted the apology to its Twitter account on Wednesday.

H.E Mr. Akbar Al Baker: I would like to offer my heartfelt apologies for any offence caused by my comment yesterday, which runs counter to my track record of expanding the role of women in leadership throughout the Qatar Airways Group and has been sensationalised by the media. pic.twitter.com/M07Wczk08B

— Qatar Airways (@qatarairways) June 5, 2018

“I would like to offer my heartfelt apologies for any offence caused by my comment yesterday, which runs counter to my track record of expanding the role of women in leadership throughout the Qatar Airways Group and has been sensationalised by the media,” Akbar al Baker said in a statement.

“Women comprise almost half (44%) of our workforce, and the dedication, drive, and skill they bring to their jobs tells me that no role is too tough for them, at all levels of the organisation,” he added.

Roughly 20,000 out of the airline’s 46,000 global employees are women.

The airline was also the first to employ female pilots and one of the first to train female engineers, al Baker said, adding that several ranking positions within the company, including Senior Vice President, are held by women.

Al Baker faced criticism for his comment made Tuesday at an International Air Transport Association (IATA) annual meeting in Sydney.

The 56-year-old CEO told journalists that women were not being underrepresented at the airline, adding: “Of course it has to be led by a man, because it is a very challenging position,” he said, prompting boos from audience members.

He later attempted to walk back his statement, claiming that he was “only referring to one individual” and that he would welcome a woman as his successor.

“It will be my pleasure to have a female CEO candidate I could develop to become CEO after me,” he said.

Qatar’s flagship airline was ranked the top airline in the world by Skytrax in 2017, and has claimed top spots consistently over the last decade.

The IATA, of which al Baker became chairman this week, only has one woman on its board of 26 people – Christine Ourmières-Widener, CEO of Britain’s Flybe carrier.


Tourism Observer

African Airlines Experiencing Great Demand

International Air Transport Association (IATA) announced global passenger traffic results for March 2018 showing that demand measured in revenue passenger kilometers, or RPKs rose 9.5%, compared to the same month a year ago, the fastest pace in 12 months.

Capacity - available seat kilometers, or ASKs grew 6.4% and load factor climbed 2.3 percentage points to 82.4%, which set a record for the month, following on the record set in February.

All regions except for the Middle East posted record load factors.

Demand for air travel remains strong, supported by the comparatively healthy economic backdrop and business confidence levels.

But rising cost inputs, particularly fuel prices suggest that any demand boosts from lower fares will moderate going into the second quarter, said Alexandre de Juniac, IATA’s Director General and CEO.

African airlines continued to enjoy very strong demand as well, with traffic up 11.2% compared to March 2017, which was more than twice the 5-year average pace of 4.8%.

Airlines here are seeing healthy growth on routes to/from Europe and Asia, while the region’s two largest economies, Nigeria and South Africa continue to improve.

Capacity climbed 6.7%, and load factor strengthened 2.9 percentage points to 71.0%.

March international passenger demand rose 10.6% compared to March 2017, which was up from 7.4% year-over-year growth recorded in February.

All regions showed strong increases. Total capacity climbed 6.6%, and load factor improved 2.9 percentage points to 81.5%.

Asia-Pacific airlines’ traffic soared 11.6% in March, compared to the year-ago period.

Passenger traffic is continuing to trend upwards, supported by strong regional economic growth and ongoing expansion in the number of airport-pair options for travelers.

Capacity increased 8.2%, and load factor rose 2.5 percentage points to 80.9%.

European carriers saw March traffic climb 9.8% over March 2017, up from 6.9% annual growth in February.

Business confidence in the most open countries in the region has been hit by trade tensions in recent months, but economic conditions remain broadly supportive.

As with Asia Pacific region, demand is also being stimulated by increases in the number of nonstop airport-pairs.

March capacity rose 6.4% and load factor was up 2.6 percentage points to 84.6%, highest among regions.

North American airlines posted a 9.5% traffic risein March compared to the year-ago period, well above the 5-year average growth rate of 3.6%.

Capacity climbed 4.9% and load factor was up 3.5 percentage points to 83.5%, which was the second highest among the regions.

The weakening US dollar is having a positive effect on inbound traffic, while the comparatively robust domestic economic backdrop is supporting outbound demand.

Latin American airlines had an 11.8% increase in March traffic, which was the largest increase among the regions for a third month in a row.

March capacity climbed 10.0% compared to a year ago, and load factor edged up 1.3 percentage points to 81.8%.

Traffic continues to recover from the disruptions caused by the harsh hurricane season in the third quarter of 2017, driven in part by economic recovery in Brazil.

Domestic demand rose 7.8% in March, which was a slight deceleration from 8.2% growth recorded in February, driven primarily by developments in the US market.

Domestic capacity climbed 6.2%, and load factor lifted 1.3 percentage points to 84.0%.


Tourism Observer

SPAIN: New Model Airline Volotea Is New Member Of IATA

Volotea, the airline of mid- and small‐sized European cities is a new member of the International Air Transport Association (IATA).

Representing some 280 airlines or 83 percent of total air traffic, IATA is the trade association for the world’s airlines.

It supports many areas of aviation activity and helps formulate industry policy on critical aviation issues.

We are pleased to become an IATA member, as this global association leads the innovation, safety and value creation in the airline industry, supporting the highest industry standards, said Carlos Munoz, Volotea’s founder and CEO.

The airline is expected to benefit from IATA’s know how and resources covering all fields of the industry, including analysis of regulations, development of standards, innovation in distribution, improvements on safety procedures, updates and training for aviation industry professionals, as well as cost reduction.

Volotea is a new model airline with a clever and bold approach, creating demand and connectivity by establishing innovative routes.

We are thrilled to welcome Volotea to the IATA family and to help them grow and excel in this highly competitive European market, said IATA Regional Vice President for Europe Rafael Schvartzman.

Volotea has carried 15 million passengers since its first flight in 2012, and over 4.8 million in 2017 alone.

Since the beginning of 2018, Volotea has launched 58 new flights to serve a lineup of 293 routes.

It currently operates flights to 78 mid- and small-sized European cities in 13 countries including France, Italy, Spain, Germany, Greece, Croatia, and the Czech Republic.

The airline is expected to carry 5.7-6 million passengers in 2018.

Its fleet consists of 32 aircraft, Boeing 717s and Airbus A319s.

Volotea currently operates from twelve bases: Venice, Nantes, Bordeaux, Palermo, Strasbourg, Asturias, Verona, Toulouse, Genoa, Bilbao, Marseille that opened on April 19 and Athens, which launched on May 3.

Volotea is a Spanish low-cost airline registered in Asturias, Spain with bases in Spain, Italy, France and Greece.

Volotea was established by Alaeo S.L. from Barcelona, a company created by former Vueling founders, Carlos Munoz and Lazaro Ros.

The name Volotea originates from the Spanish verb revolotear, meaning to fly around.

It commenced operations on 5 April 2012, from Venice Marco Polo Airport.

The company is backed by three private equity funds, two of them from Europe - Axis Participaciones Empresariales and Corpfin Capital and a third from the United States - CCMP Capital, whose chairman, Greg Brenneman, was one-time President and COO of America's Continental Airlines,and also chairs Volotea's board.

The company raised over €50m before operations began.

Boeing announced on 15 February 2012 that it had signed a long-term lease deal with Volotea for an undisclosed number of Boeing 717 aircraft.

In March 2015, it was announced that Volotea will receive a further four 717s from Blue1.

However, in November 2015, Volotea announced plans to phase out their 717 fleet over the next few years and replace it with Airbus A320 family aircraft.

As of January 2018, the Volotea fleet consists of the following aircraft:

Airbus A319-100 - 11

Boeing 717-200 - 17

Total - 28

Orders

Airbus A319-100 - 4


Tourism Observer

Shortcomings In Passenger Airport Charges

International Air Transport Association (IATA) calls on the European Union to significantly strengthen economic regulation of major European airport monopolies by focusing on the interests of passengers.

Enforcing greater cost-efficiency at Europe’s airports will feed through into cheaper air fares, stimulate travel and enhance European competitiveness. In turn, this will support jobs and grow the economy.

The case for stronger airport charges regulation is seen in how European passengers have been denied the full benefits of cheaper air travel, as illustrated over the period 2006-2016 in a just-released IATA study:

- The average cost of an air ticket remained virtually the same,including all ancillary charges such as hold bags.

- The revenue portion of the ticket price for airlines fell from 90% to 79%

- The portion of the ticket price taken by the airport doubled. Passenger taxes also doubled

- Had airport charges remained constant over the 2006-2016 period consumers could have benefitted, on average, 17 Euros per one-way trip. That price stimulus of nearly 10% of average tickets costs would have improved Europe’s competitiveness, and potentially generated an additional 50 million passengers.

In turn that would have unlocked 50 billion Euros in European GDP and created 238,000 jobs.

Airlines, like all competitive businesses, are in a constant struggle to improve efficiency.

Europe’s airports however are largely insulated from competitive forces.

Europe’s light-handed Airport Charges Directive has failed Europe’s travelers and its own competitiveness by letting airport charges rise.

Tighter EU regulation is needed to stop airport monopolies from taking money from the pockets of travelers to reward investors.

The goal should be economic regulation of airport monopolies that is an effective proxy for competition—promoting efficiency while protecting consumers.

In that regard the voice and interests of airlines – airports’ main customers – should be carefully listened to.

This will ensure effective regulation that will broadly balance the interests of travelers, investors, citizens and economies, said Alexandre de Juniac, IATA’s Director General and CEO.

The trend of increasing private ownership of European airports adds urgency to the situation.

Since 2010 the number of European airports in private hands has almost doubled.

In many cases privatization has failed to deliver promised benefits to passengers and the local economy often suffers the results of higher costs.

The balancing role of effective and strong economic regulation is essential, said de Juniac.

Airport regulation in Europe has not responded adequately to the changing landscape in the airport sector.

The share of fully privately owned airports in Europe increased from 9% to 16% between 2010 and 2016 while the share of mixed ownership models increased from 13% to 25% over the same period.

Where publicly-owned airports may be considered as benign monopolists, often pursuing economic and social goals to support their local region, this is not the case with privately-owned airports who are driven by investor returns.

Increasing private ownership of airports in Europe has not been combined with appropriate regulatory oversight that drives airports to increase cost efficiency and ensure that airports are responsive to consumer demands.

Between 2006 and 2016 the average all-in cost of an air ticket bought to fly from an EU28 airport remained broadly flat, increasing by just 2% in nominal terms from €216 in 2006 to €220 in 20161.

However, the distribution of revenues between airlines, airports and governments changed significantly.

Average airline revenue per passenger fell from €194 in 2006 to €173 in 2016 and shrank from representing 90% to less than 80% of the all-in ticket price.

At the same time, both airport passenger charges and taxes have more than doubled, with average charges increasing from €16 to €33 and average taxes from €6 to €14.

The increased demand for air travel would have provided a significant boost to the European economy.

Lower airport charges would have benefited European businesses through lower travel costs and increased competitiveness, stimulating additional tourism and lastly encouraging the continued development of the European aviation sector.

Economic modelling carried out by IATA suggests that the economic boost from cheaper air travel could have unlocked an additional EUR50 billion in Gross Value Added (GVA) and supported the creation of an additional 238,000 jobs across the EU28.

In its Aviation Strategy, the European Commission has rightly identified the need to boost the efficiency of airport services and has engaged in an assessment of whether and how the Airport Charges Directive needs to be reviewed.

IATA fully supports the urgent finalization of this assessment under the leadership of Commissioner Violeta Bulc and of her team.



Tourism Observer

KENYA: Sebastian Mikosz Kenya Airways CEO Appointed To IATA Board

Sebastian Mikosz The Kenya Airways CEO
Kenya Airways chief executive Sebastian Mikosz has been appointed to the International Air Transport Association (IATA) board an interim basis.

Mr Mikosz will stay on the board until next year when IATA holds its annual general meeting in Sydney, Australia, from June 3-5.

I am honoured to be appointed to the Board of IATA. This for me represents an opportunity to bring knowledge, experiences and passion for my profession to serve current, prospective and future communities, while also focusing on diversity and inclusion in the aviation industry, Mr Mikosz said

The KQ chief executive has more than 20 years of professional experience in executive management both in the private and public sector.

Mr Mikosz, who took over at Kenya Airways in June, has previously been CEO of eSky.pl, the leading central European online travel agent.

He has also been president and CEO of LOT Polish Airlines, one of the oldest airlines in the world - a position he held twice including an in depth turnaround of the company.

Kenya Airways is eyeing New York as its first destination when it starts direct flights to the US next year.

The national carrier sees the city as a convenient East Coast aviation hub to mark its entry into the US, before spreading its wings across the world’s biggest economy.

The airline, which last week received regulatory approval to operate direct flights to the US, also estimates that it will move 60,000 passengers in its first year of operation on the route.

We are currently focusing on New York due to the importance of point to point traffic with Nairobi. However, we are also studying other options on the US territory as we may expand our network in the US in the near future, Kenya Airways (KQ) Commercial Director Vincent Coste said in an interview.

In its submissions to the United States government, KQ had said that it plans to launch direct flights in April 2018, although the company has since indicated June 2018 as a more likely date.

New York’s JFK Airport was the United State’s fourth-busiest airport in 2016, according to Airports Council International.

The city is the country’s economic hub and being on the East Coast, it would be easier to reach relative to other hubs such as Atlanta International Airport, Chicago’s O’Hare, and LAX on the West Coast.

KQ received a foreign air carrier permit on September 5th from the United States Department of Transportation (DOT).

Meanwhile Jetways Airlines, is set to launch daily flights to Diani in November targeting tourists visiting the Kenyan Coast famous for its white sandy beaches and marine sports.

The airline will operate two daily flights to and from Wilson and Ukunda Airstrip. This will be the second scheduled flights route for Jetways, which also flies the Wajir.

Ukunda Airstrip is used by both commercial and chartered aircrafts. Passengers will pay Sh10,000 for a one-way ticket. The firm is flying to Wajir at a promotional fare of Sh6,000.

The airline says it is targeting holiday makers visiting Southern Coast regions that include Tiwi, Diani, Galu, Kinondo and Chale Island.

Diani Beach is one of the most exclusive locations for Kenya beach holidays and has consistently been voted one of the top beaches in Africa,it is home to several organisations such as The East African Whale Shark Trust which works to protect whale sharks,reads a statement on its portal.



Tourism Observer

QATAR: Should Or Will Qatar Airways Buy Stake In American Airlines?

Qatar Airways’ intent to acquire up to 10 per cent of American Airlines, variously described as confusing, misguided and ill-conceived by the chief executive of its target, may have created a window for US carriers to renew their efforts to curb the expansion of their Arabian Gulf rivals into the North American aviation market at a critical time when demand has been relatively soft.

The open skies dispute, led by allegations from airlines in the United States of unfair competition by Gulf carriers, had simmered down in the last year after a drawn-out and fractious period involving harsh words, a concerted lobbying effort on the part of the American companies and the unrelenting addition of capacity to the United States by Emirates, Etihad Airways and Qatar Airways.

Since the US president Donald Trump’s inauguration in January, a series of actions by his administration, particularly the ban on the use of electronic devices such as laptops on flights to the US from Gulf airports, had resulted in a fall-off in demand. Emirates began moving spare capacity on to other markets, including Asia. This appeared to remove some of the impetus for the dispute, which US carriers were intent on keeping up, having written in March to Mr Trump urging him to act.

With Thursday’s surprise announcement that Qatar Airways was weighing a passive investment in American Airlines, the reaction from some quarters of the US aviation sector has been reminiscent of the conflict at its height in February 2015, when the then Delta Air Lines’ chief executive, Richard Anderson, brought up the 9/11 attacks when hitting back at his Gulf rivals.

On Thursday, Doug Parker, American Airlines’ chief executive, bristled at suggestions that Qatar Airways’ move could be driven by an intention to soften up US resistance to the expansion of foreign airlines.

If that is their motivation, it is misguided and ill-conceived, Mr Parker told CNBC. All this is doing is strengthening our resolve to defend our airline, which we will continue doing vigorously. In a letter to employees following the news, Mr Parker reminded them that foreign investors could not own more than 24.9 per cent of a US airline. In fact, to acquire more than 4.75 per cent of American Airlines requires board approval.

American Airlines is publicly listed on the Nasdaq stock market.

Mr Parker was quick to seize the opportunity to reiterate his company’s stance on competition from Gulf carriers and when contacted by The National, the lobby group leading the campaign to persuade the US government to curb their expansion also jumped at the chance to state their case loudly.

American Airlines remains a strong and committed member of the Partnership for Open and Fair Skies, which opposes foreign government subsidies that violate international agreements with the US and threaten the jobs of more than 1.2 million Americans, said the partnership’s spokeswoman Jill Zuckman.

Gulf carriers, meanwhile, have always denied allegations of unfair competition and have pointed to the failure of US carriers to provide customers with the level of service they expect. In short, Gulf carriers said their US rivals just didn’t like any kind of competition.

Still, the move by Qatar Airways has come at a convenient time for the US aviation industry, which has been hit by a series of ugly incidents underlining the very same customer service failures highlighted by Gulf rivals. In April, a video of a man being forcibly carried off an United Airlines flight went viral, sparking fierce criticism.

Only a few weeks afterwards, an American Airlines cabin crew member was suspended after allegedly hitting a mother with her baby’s stroller. Then in May, a Delta sales agent smacked a phone out of a 12-year-old boy’s hand, sparking a lawsuit.

Since Thursday, in contrast, the noise has been about American Airlines as an attractive investment and its shares spiked briefly on the day. Based on Wednesday’s closing price, a 10 per cent stake would be worth US$2.39 billion, according to data from MarketWatch. Qatar Airways called American Airlines a "strong investment opportunity" and said it would initially be interested in investing about $800 million.

In a letter to the employees, Mr Parker wrote that if Qatar Airways simply views American Airlines as a solid financial investment in that case we would agree with them. Your results are earning the confidence of our customers and our shareholders every day.

Almost a year ago, it seemed as if the US campaign against Gulf airlines had floundered when its government confirmed it planned to take no action. Following Mr Trump’s win, there had been some expectation that this could change. However, despite the laptop ban, which was put in place for security reasons, the Trump administration has shown little direct interest in the open skies dispute. There has also been plenty of other news to keep the conflict low key.

Now it is firmly at the top of the business agenda again at a time when Gulf carriers have more pressing matters to tackle, such as relatively sluggish demand.

Last week, Etihad announced a wave of new measures to boost revenue from economy class travellers including being able to pay for a "neighbour free" seat and the chauffeur services usually reserved for premium passengers. Earlier this year, Emirates started offering premium lounge access for a fee.

In May, the group reported the airline’s profit for the last financial year tumbled by 82.5 per cent, with margins dropping, as it lowered ticket prices to maintain passenger volumes. In the region, 2016 was marked by capacity outstripping demand.

Through the first half of this year, the trend has abated somewhat with Middle East carriers showing that demand growth has rebounded. Overall, the operating environment will remain challenging globally, according to the International Air Transport Association. Heightened tension in Europe over terrorism risks has also complicated the outlook in a key market for Gulf airlines.

With demand on routes to the US hampered by the laptop ban and repeated attempts by the Trump administration to restrict travel for citizens from Muslim nations, 2017 has not been typical of recent years in terms of expansion of flights into the American market.

In fact, Emirates in April said it would reduce capacity to Boston, Los Angeles, Seattle, Orlando and Fort Lauderdale. Etihad, however, this month offered some optimism, saying it would operate an all-A380 service on its Abu Dhabi-John F Kennedy route in response to passenger demand. Last week, Emirates’ president, Tim Clark, said he was hopeful of demand returning on its flights to the US.

"I’m hoping that the trauma of a few months ago in March is starting to even out. I’m hoping we can get operations back to where they were," he said.

KENYA: Kenya’s Aviation Supports 620,000 Jobs, Says IATA

Kenyan aviation industry supports up to 620,000 direct and indirect jobs including employment in the tourism sector, a study by the International Air Transport Association (IATA) has concluded.

The aviation industry contributed nearly Sh330 billion ($3.2 billion) to Kenya’s economy, or 5.1 per cent of the country’s Gross Domestic Product (GDP), according to the IATA report.

The findings are among highlights of the Importance of Air Transport to Kenya study which was conducted by Oxford Economics on behalf of IATA.

The study confirms the vital role that air transport plays in facilitating more than $10 billion in exports, some $4.4 billion in foreign direct investment and around $800,000 in inbound leisure and business tourism for Kenya, said Muhammad Albakri, IATA’s regional vice president for the Middle East and Africa.

However, by adopting policies that ensure a competitive operating environment for the airlines, Kenya could reap even greater dividends from aviation, he added.

According to executives surveyed by the World Economic Forum, Kenya’s transport infrastructure quality score places the country sixth out of 37 African countries surveyed and 78th globally.

Kenya was ranked 31st out of the 37 African countries for cost competitiveness in the air transport industry, based on air ticket taxes, airport charges and Value Added Tax.

On visa openness, Kenya was ranked 10th out of the 37 African countries which were in the survey.

Around 130,000 aircraft land and take off from one of Kenya’s five main airports every year.

The Jomo Kenyatta International Airport is the key gateway and handled more than 5.8 million passengers in 2014.

While Kenya’s air transport infrastructure ranks highly among African states, it is important that heavy fees, taxes and charges do not hold aviation back, Mr Albakri said.

We are very encouraged by the news that the Kenya Airports Authority (KAA) has embarked on a study to review Airport charges downwards.

Mr Albakri who is soon making his first visit to Africa in his new capacity, also expected to visit Kenya.

During his visit to Nairobi, the IATA official will be meeting with key industry stakeholders including officials from the government, the Kenya Civil Aviation Authority, KAA and the African Airlines Association.

KENYA: IATA Rates Kenya 10th Out Of 37 Countries For Visa Openness

Kenya is among the top 10 African countries for visa openness, a survey by the International Air Transport Association (IATA) has shown.

The country is ranked 10 out of 37 countries for visa openness and 31st for cost competitiveness in the continent.

The findings are among highlights of The Importance of Air Transport to Kenya, a study by Oxford Economics on behalf of IATA.

IATA Regional Vice President for the Middle East & Africa Muhammad Ali Albakri said Kenya could reap greater dividends from aviation by adopting policies that ensure a competitive operating environment for airlines.

While Kenya’s air transport infrastructure ranks highly among African states, it is important that heavy fees, taxes and charges do not hold aviation back, he said.

About a fortnight ago, Kenya granted South Africans additional time to visit without visas, pointing to a thawing of diplomatic relations between the two nations.

Kenya is also set to commence the issuance of four-day transit visas from January which will allow foreign passengers on Kenya Airways awaiting connection flights at the Jomo Kenyatta International Airport (JKIA) to exit for shopping and sightseeing.

Passengers on layovers, a break between two flights taking passengers to their final destination, will receive a 96-hour transit visa, up from the current 72.

The move is expected to boost KQ’s income and the local travel industry as well as increase the attractiveness of JKIA as a transit port.

The IATA survey showed that an estimated 130,000 aircraft land and take off annually from the JKIA which is the key gateway to the rest of the world.

In 2014, JKIA handled over 5.8 million passengers, the Moi International Airport in Mombasa handled 950,000 passengers while the Wilson Airport handled 310,000 passengers.

The study found that air transport sector’s ability to connect Kenya to emerging countries and fast growing cities can help drive economic growth.

There are 6 direct flight destinations among the ten fastest growing countries in the world as measured by GDP growth and 9 direct flight destinations among the 20 fastest growing countries.

The data shows there are 20 direct weekly flights among the ten fastest growing cities in the world as measured by GDP growth and 41 direct weekly flights among the 100 fastest growing cities.

Albakri said the study confirms the vital role that air transport plays in supporting the country’s economy.

The data showing that the air transport sector in Kenya supports some 620,000 jobs including tourism-related employment, while contributing Sh329.6 billion (US$3.2 billion) or 5.1 per cent of the East African nation’s GDP.

GULF REGION: Uncertainty In Gulf Aviation, Over 100 Planes Grounded Or Delayed, Passengers Stranded

Dozens of Qatar Airways flights grounded as four nations close airspace, triggering fears for future of Gulf aviation.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have closed their airspace to Qatari aircraft on Tuesday amid a deepening diplomatic row, forcing Qatar's flag carrier to re-route its flights over Iran, Turkey and Oman.

The decision by the four Arab nations to sever diplomatic ties and cut off sea and air links with Qatar has caused major disruptions to air travel across the Gulf and raised fears for the future of aviation in the region - home to several of the world's major long-haul carriers.

The countries that launched the measures against Qatar have accused it of supporting terrorism, a claim Qatar has called unjustified.

More than 70 flights were grounded across the region on Tuesday, according to data from scheduling firm OAG. A majority of the flights belong to Qatar Airways.

Other airlines affected include Dubai's Emirates, Abu Dhabi's Etihad Airways, Saudi Arabia's Saudia, and Bahrain's Gulf Air, which have all cancelled flights to and from Doha.

Alexandre de Juniac, the director general of the International Air Transport Association (IATA) has expressed concern over the blockade and called for more openness.

We would like borders to be reopened, the sooner the better, he told reporters at the group's annual meeting in the Mexican city of Cancun on Monday. Aviation is globalisation at its very best.

The departure terminal at Doha's Hamad International Airport was virtually deserted early on Tuesday. More than 30 flights were shown as cancelled on airport television screens.

Qatar Airways, in a statement on its website, said passengers holding a confirmed ticket to any of the four Arab nations between June 5 and July 6 are permitted to rebook their flights up to 30 days after their current departure date.

The airline said its offices would continue to operate as normal in affected countries.

Saudi Arabia's General Authority of Civil Aviation, however, revoked the airline's license on Tuesday and ordered its offices to be closed within 48 hours.

Qatar Airways could not be reached for comment.

Meanwhile, many of the airlines' passengers were complaining online of delays in rebooking and obtaining refunds.

Analysts said the altered routes for Qatar Airways flights will lead to longer flying time, lowering demand, thus affecting the airline's profits.

An image posted online by flight tracking group Flightradar24 showed the restricted routes Qatar Airways flights were taking because of the blockade. The aircraft were being forced to take a single flight path in out of Doha.

Many of Qatar Airways' flights to southern Europe and Africa pass through Saudi Arabia. Flights to Europe will most likely be rerouted through Iran and Turkey, Flightradar24 said. Flights to Africa may route via Iran and Oman and then south.

The CAPA Centre for Aviation in Melbourne, Australia, in a report on Monday, said the Gulf diplomatic crisis has dealt a blow to public confidence in aviation and may have a far-reaching impact on the region's airlines.

There can be few winners, the group said, adding that the crisis has already created wider uncertainty for Gulf aviation and passengers whose bookings are months away.

The row between Gulf states is a fresh challenge for the region's airlines at a time when US President Donald Trump is trying to restrict the travel of passengers to the US from some Muslim-majority countries.

US authorities have also banned the use of most electronic devices on board aircraft from some Gulf countries.

Amidst growing security concerns and the existing laptop ban, passengers are unlikely to dig in to the reason for this ban. Gulf aviation becomes less attractive for all, CAPA said.

IATA's De Juniac meanwhile said profits and passengers have fallen sharply in the Middle East in recent months.

There is growing evidence that the ban on large electronic devices in the cabin and the uncertainty created around possible US travel bans is taking a toll on some key routes, he said.

Kuwait is trying to mediate a regional crisis in which Arab countries have cut diplomatic ties with Qatar and moved to isolate the energy-rich, travel-hub nation from the outside world, Qatar's foreign minister said.

Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed diplomatic relations with Qatar on Monday in a coordinated move, accusing the peninsula of supporting terrorists and Iran.

Yemen's internationally recognised government also cut ties with Qatar, accusing it of working with its enemies in the Iran-aligned Houthi movement.

The Maldives and Libya's out-of-mandate Prime Minister Abdullah al-Thinni later joined the Arab nations in saying they too would cut ties.

Sanctions include shutting down transport links, including closing borders, airspace and maritime territories, which led to fears of supply shortages.

Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani said Kuwait's ruler, Sheikh Sabah Al Ahmad Al Jaber Al Sabah, had asked Sheikh Tamim bin Hamad Al Thani, Qatar's ruling emir, to hold off on giving a speech about the crisis late on Tuesday night.

He received a call from the emir of Kuwait asking him to postpone it in order to give time to solve the crisis, Sheikh Mohammed said.

Sheikh Sabah called on Qatar's ruler to focus on easing tension and advised against making decisions that could escalate the situation.

Still, the Qatari foreign minister struck a defiant tone, saying his nation rejected those trying to impose their will or intervene in its internal affairs.

There are many analysts who believe that a potential break-up of the GCC has to be considered right now.

He added that if tension escalates, some have warned of a military confrontation.

If these countries fail to resolve their issues and such tensions reaches new heights, we have to be very open to the possibility of these six Arab countries no longer being able to unite under the banner of one council.

The dispute between Qatar and the Arab countries escalated after a recent hack of Qatar's state-run news agency. It has spiralled since.

As it cut ties on Monday, Saudi Arabia charged that Qatar was embracing various terrorist and sectarian groups aimed at destabilising the region, including the Muslim Brotherhood, al-Qaeda, the Islamic State of Iraq and the Levant, ISIL also known as ISIS and armed groups supported by Iran in the kingdom's restive east.

Egypt's Foreign Ministry accused Qatar of taking an antagonist approach towards Cairo and said all attempts to stop it from supporting terrorist groups failed.

Qatar denied the allegations, with a Foreign Ministry statement describing them as "baseless" on Monday.

The group issuing sanctions on Doha is clearly the imposition of guardianship over Qatar, which is in itself a violation of its sovereignty, and is rejected outright, the statement said.

The move came just two weeks after US President Donald Trump visited Saudi Arabia and vowed to improve ties with both Riyadh and Cairo to combat terrorism and contain Iran.

US Secretary of State Rex Tillerson said the move was rooted in long-standing differences and urged the parties to resolve them.

IATA: Muhammad Ali Albakri Is IATA Regional Vice-president For Africa And Middle East

The International Air Transport Association (IATA) announced that Muhammad Ali Albakri will join IATA as regional vice-president for Africa and the Middle East (AME).

Albrakri’s appointment was effective January 1, 2017 and he will be based in the IATA regional office in Amman, Jordan.

Muhammad Ali Albakri is stepping into a critical role at IATA. Africa and the Middle East are among the fastest growing markets for air transport.

While the region has tremendous potential, it also faces some big challenges. Infrastructure, regulation and taxation must align to support the social and economic benefits of a successful aviation sector.

I am confident that Muhammad’s solid aviation background will deliver great value to our members and aviation in general across AME,” said Alexandre de Juniac, IATA’s director general and CEO.

Albakri is a Saudi national and aviation veteran.

Since the beginning of this year Albakri has served as executive vice-president for strategic projects and transformation at Saudi Arabian Airlines.

In that role he was charged with delivering various initiatives as part of a broad transformation strategy devised to strengthen the competitiveness of the airline as it aims to double its size by 2020.

Under Albakri’s leadership, Saudia successfully moved its second largest domestic hub operation into the new Terminal 5 at Riyadh’s King Khalid International Airport in May of this year.

He is also leading similar relocations of the airline’s operations to new facilities in Jeddah and Cairo.

Albakri’s career at Saudia spanned some 26 years. He rose through the ranks of the airline’s IT Division, eventually being appointed as vice-president of information technology (2009-2016) concurrent to holding the responsibility of chief financial officer (2012-2016).

In these roles, Albakri led the strengthening of the carrier’s technology infrastructure and the modernization of its financial practices and processes.

I am tremendously excited to take up this challenging role. IATA has made critical contributions to the development of aviation around the world.

That work is especially evident in Africa and the Middle East where the industry is rapidly changing. I have seen first-hand the transformational power of IATA’s global standards such as Fast Travel, e-freight and New Distribution Capability.

These boost competitiveness and please customers at the same time. In my new role, I am excited to be responsible for the full suite of IATA’s activities and shall be a tireless advocate for aviation’s success in the AME region, said Albakri.

Albakri will lead IATA’s regional office for AME where a total of 124 employees are responsible for IATA’s operations across 68 countries.

This includes the operation of IATA’s settlement systems which efficiently handle some $23 billion of industry money annually across 38 countries.

The fast growing AME region is home to 58 of IATA’s 265 member airlines and accounts for 11.6% and 15.5% of global traffic in terms of RPKs and FTK, respectively.

Aviation supports some 9 million jobs and $130 billion of GDP across Africa and the Middle East.

Albakri succeeds Hussein Dabbas who led IATA in the region from 2012 until June, 2016.

Among Dabbas’s many leadership contributions during his tenure at IATA was the successful integration of IATA’s activities in the Middle East and Africa into one region.

ZIMBABWE: Ekhayeni African Village Depicts Real Cultural Tourism In Africa

Zonfa director, Victor Marufu said that the opening of the village built on four hectares of architectural beauty and creative design in Harare will bring an assortment of different ways of living, stimulating a healthy community and promoting African cultures.

“The opening of Ekhayeni — The African Village brings the taste of the real Africa, all encapsulated within a shopping environment that has been designed to entertain and inspire, while promoting cultural and heritage tourism,” Marufu said.

African nations have lacked a forum to showcase and sell produce as well as showing off their expertise, so we have stepped up and we are offering a unique market place.

He said the village will blend the desires and needs of any shoppers as it will feature food outlets, farmers’ markets, children’s play centre, events centre, music studio, art studio, hair studio and nail bar, communication centre, herbal shop, tour operators and travel agencies, African couture outlets, art and craft shops and plants and herbs nursery.

The events centre will be the heartbeat of our village as it will host many functions including, cultural festivals, fashion shows, music festivals and competitions, he said.

Marufu said the music studio will offer educational classes for pre-schoolers up to teens, adding that there will be an early childhood music education programme to be taught by qualified teachers.

Art classes at our studio are designed to intentionally develop the inner artist, having been structured around weekly themes encouraging experimentation and creativity with the aim of unleashing the artist within, he said.

Our art and craft shop will carry extraordinary, exotic and unique collections of African arts and craft products, offered at the most competitive prices.

He said the African couture outlets will not just be about clothing, but visual statements that are part of art and fashion.

Meanwhile, ZCT president Tichaona Hwingwiri says that the tourism sector in the country is losing potential revenue due to lack of a well-serviced route network around Zimbabwe by scheduled air service providers.

The lack of a well-serviced route network around Zimbabwe by scheduled air service providers is a worry, especially as foreign visitors prefer to fly in and out of destinations and not travel long distances by road, he said.

Airlines have also expressed concern that repatriation of funds to airlines servicing our destination through the IATA ,International Air Transport Association, Fund is slow and debilitating, and will have an effect of making Zimbabwe look unreliable to potential and existing carriers servicing this country.

IATA suspended Air Zimbabwe from its account settlement system in 2012 due to non-payment of fees, thereby dealing a major blow to the struggling airline. The airline is still struggling to pay $3,5 million it owes IATA.

Hwingwiri also outlined a range of challenges affecting tourism growth, and these include both macro and micro issues.

He said self-drive tourism to Zimbabwe and domestic tourism has been significantly affected by the huge number and aggressiveness of police roadblocks.

The Zimbabwe Republic Police has increased roadblocks on the country’s highways to maintain peace, but the high number of checkpoints has been criticised as being excessive and discouraging to tourists.

Tourism players have tried to engage the police to get them to reduce roadblocks to match international standards to no avail.

Hwingwiri also noted that reduced spending power among Zimbabwean consumers has caused a drop-off in travel to local destinations for leisure purposes, while decreased budgets within corporates and other organisations has reduced the number of business and conference opportunities for hospitality operators in particular.

The state of roads to be used by tourists is a major concern, especially in the Eastern Highlands, which is entirely dependent on road transportation of visitors,he said.

Hwingwiri said inadequate levels of access for potential tourists coming to Zimbabwe was also a major problem, although relief has been somewhat forthcoming because of the expansion of the Victoria Falls International Airport and the drive to encourage more airlines with larger aircraft to travel there.

INDIA: Travel Goes Up As Fuel Exports Go Down

India's record jet fuel exports may fall this year as an expanding middle class and cheaper air travel boost local consumption, refinery executives said, potentially raising ailing profit margins for the fuel.

Prime Minister Narendra Modi last month launched the first flight under the Regional Connectivity Scheme that is designed to spur air travel between smaller Indian cities that are currently under-served and to make flying more affordable.

The government will cap fares under the scheme and offer airlines incentives to fly less traversed routes.

The plan should eat into the country's jet fuel exports, which rose to a record of 741,000 tonnes in March, according to preliminary government data.

The expected decline in exports could help raise jet fuel margins, which plunged to a nine-month low earlier this month, said three middle distillate traders.

India's efforts to connect regional routes and the expansion of aircraft fleets will continue to boost local demand for jet fuel, said Sri Paravaikkarasu, head of East of Suez Oil at energy consultants FGE.

India's jet fuel demand is expected to rise by 11 percent in 2017 after rising last year by 13 percent, or about 15,700 barrels per day (bpd), she said.

In the domestic market, we are expecting double digit growth in jet fuel because of regional connectivity and enhanced air travel, said Indian Oil Corp chairman B. Ashok last week.

According to the International Air Transport Association (IATA), India is the world's fastest growing aviation market, with passenger numbers rising by more than 20 percent a year.

IATA expects India to displace the United Kingdom as the third-largest market in the world in 2025, with passenger numbers more than doubling to 278 million a year from more than 95 million today.

Enticed by the growing size of India's aviation market, BP last year obtained a licence to sell jet fuel in the South Asian nation.

The firm local demand, coupled with weaker profit margins for refining jet fuel compared with gasoil, could slow jet fuel exports this year, said L.K. Gupta, managing director of Essar Oil.

Refiners typically adjust the yield of middle distillates, which include jet fuel, kerosene, gasoil and diesel, according to the margins.

Last year, India's jet fuel exports were high due to better margins compared to gasoil, Gupta said.

Policies And Regulations Of Flying While ill

Global medical tourism market predict a growth of at least 18 per cent over the next decade, to reach about $99 billion by 2025.

Per these reports, some of the leading global medical tourism destinations are Singapore, Thailand, India, Malaysia, Taiwan, Mexico and Costa Rica, with Thailand and India taking the lead in having the largest number of accredited medical facilities.

India, which is listed as a top destination for Africans seeking treatment overseas, is poised to more than double its medical tourism market from the current $3 billion to over $8 billion by 2020.

Just to bring it closer home, by 2015 East Africans were spending about $1 billon on medical treatment in India.

Given the state of medical facilities in the region, the need for travel to India and Thailand for medical purposes is not about to lessen. In fact, the numbers are expected to increase.

The travel component of medical tourism can be very strenuous, depending on the condition of the patient.

It doesn’t help that most people are not familiar with airline policy and regulations regarding travel for medical cases.

While most airlines have no means of ensuring that every passenger they carry is fit to travel, they will try as much as possible try to ensure that the condition of passengers with unstable medical conditions will not deteriorate while flying.

It is therefore important that passengers familiarise themselves with policies and regulations ahead of ticketing if travelling with a medical condition.

Working with the International Air Transport Association (IATA) guidelines, airlines have in place a Passenger Medical Clearance Unit made up of medically experienced staff whose duty is to advise on suitability and fitness to fly.

Commonly referred to as MEDIF, the Medical Information Form should always be obtained from the airline in advance of travel and completed truthfully then returned to the airline alongside a medical report or medical certificate and any other documents requested.

While a medical report is usually more detailed and contains diagnosis, a summary of hospitalisation and recent general condition of the patient, a medical certificate includes a brief diagnosis and states whether the passenger is fit for air travel and if any precautionary measures are required.

Passengers travelling frequently with a known chronic and stable medical condition should apply for a pre-approved Frequent Traveller’s Medical Card (FREMEC). It describes the passenger’s medical needs and special handling requirements, and the passenger need not obtain medical clearance for every travel.

The Passenger Medical Clearance Unit at the airline, is the final authority over who is fit to fly regardless of medical certificate recommendations.

They key reason airlines insist on advance passenger information in medical cases is to ensure adequate preparation and confirm that they have the facilities to cater for the traveler ill adequately.

With ample notice, airlines provide special services like special meals (diabetic, no salt, low cholesterol, etc), wheelchairs, special seating, availability of oxygen and stretchers.

Once an airline accepts a passenger with a medical condition, they are bound to make all logistical arrangements pertaining to their comfort.

There are of course countries where local law constrains airline and industry guidelines specifically regarding carriage of passengers with reduced mobility.

The rule of thumb is that any medical condition that renders a passenger unable to complete a flight without requiring extra medical assistance during the flight is considered unacceptable for air travel.

For instance, reduced atmospheric pressures at takeoff and landing coupled with oxygen tension could pose a serious threat to the health and well-being of a sick passenger.

Be sure to apprise yourself of airlines’ lists of medical conditions that are unacceptable for air travel.

There are also post-operative conditions that that can affect travel, for instance travel within 10 days of abdominal surgery or 21 days of eye and chest operations is not recommended.

Even though pregnancy by many standards is not considered a medical condition, many airlines will only allow travel up to between the 35th and 37th weeks of pregnancy, not beyond.

Note that airlines require doctors reports to be clear on “Single/Multiple” and “Complicated/Uncomplicated” in pregnancy cases.

Air travel with newborn babies less than a week old is not allowed.

Once on board, travellers can take comfort in knowing that all airlines train their cabin crew in first aid.

However, most if not all airlines strictly prohibit their crew from administering medication or injections or even giving special assistance to passengers at the expense of other travellers.

Remember the key reason for full declaration of a passengers’ medical condition is to ensure their comfort and that of other passengers can be guaranteed during the flight.