There may be a glimmer of light at the end of the tunnel as there are signs that the aviation industry has seen the bottom of the crisis and started the slow recovery. Readers will see a report from IATA reflecting this uptick. We also note in Other News an article from the New York Times that talks about when epidemiologists will be willing to undertake 18 everyday activities, including flying. – definitely worth the read!


IATA

The International Air Transport Association (IATA) announced that demand for air services is beginning to recover after hitting bottom in April. Passenger demand in April (measured in revenue passenger kilometers or RPKs), plunged 94.3% compared to April 2019, as the COVID-19-related travel restrictions virtually shut down domestic and international air travel. This is a rate of decline never seen in the history of IATA’s traffic series, which dates back to 1990. More recently, figures show that daily flight totals rose 30% between the low point on 21 April and 27 May. This is primarily in domestic operations and off of a very low base (5.7% of 2019 demand). While this uptick is not significant to the global dimension of the air transport industry, it does suggest that the industry has seen the bottom of the crisis, provided there is no recurrence. In addition, it is the very first signal of aviation beginning the likely long process of re-establishing connectivity.

“April was a disaster for aviation as air travel almost entirely stopped. But April may also represent the nadir of the crisis. Flight numbers are increasing. Countries are beginning to lift mobility restrictions. And business confidence is showing improvement in key markets such as China, Germany, and the US. These are positive signs as we start to rebuild the industry from a stand-still. The initial green shoots will take time—possibly years—to mature,” said Alexandre de Juniac, IATA’s Director General and CEO.

IATA calculated that by the first week of April, governments in 75% of the markets tracked by IATA completely banned entry, while an additional 19% had limited travel restrictions or compulsory quarantine requirements for international arrivals. The initial flight increases have been concentrated in domestic markets. Data from late May show that flight levels in Republic of Korea, China and Vietnam have risen to a point now just 22-28% lower than a year earlier . Searches for air travel on Google also were up 25% by the end of May compared to the April low, although that’s a rise from a very low base and still 60% lower than at the start of the year.
“For aviation, April was our cruelest month. Governments had to take drastic action to slow the pandemic. But that has come with the economic cost of a traumatic global recession. Airlines will be key to the economic recovery. It is vital that the aviation industry is ready with bio-safety measures that passengers and air transport workers have confidence in. That’s why the speedy implementation of the International Civil Aviation Organization’s (ICAO) global guidelines for safely re-starting aviation is the top priority,” said de Juniac.


SITA

SITA has made several changes to its executive management team responsible for SITA’s product portfolios. These appointments come at crucial juncture as the air transport industry begins the difficult task of restarting operations after a lengthy shutdown due to the COVID-19 crisis.

David Lavorel, previously CEO of SITA FOR AIRCRAFT, has been appointed to head SITA AT AIRPORTS AND BORDERS, SITA’s airport and border solution portfolio. A key focus in 2020 will be to support SITA’s airline and airport customers to implement smart solutions to accommodate new passenger processes required to ensure the health and safety of travelers and employees. SITA is well placed to support the re-engineering of the passenger journey and to manage rapidly changing requirements at the border with the delivery of new solutions such as SITA’s cloud-based, open API platform, SITA Flex.

David will replace Matthys Serfontein, who will be retiring from SITA after 13 years. Sébastien Fabre, previously VP Airline & Airports Portfolio, will replace David to head SITA FOR AIRCRAFT. As airlines globally begin to resume flights, they will increasingly turn to SITA FOR AIRCRAFT to deliver new operational efficiencies such as faster turnarounds while extracting the full benefit of modern connected aircraft.

Barbara Dalibard, CEO, SITA, said: “Ensuring strong leadership of our key business areas is especially important as we look to support the industry as it begins to return to the skies. After more than a decade proving themselves highly capable of driving innovation while ensuring continued customer satisfaction, Sébastien and David are perfectly placed to steer the business through the new challenges and deliver solutions that help support the industry’s recovery.”
The new appointments came into effect from June 1, 2020.


Airbus

Airbus’ 2020 gross orders by May 31st totaled 365 aircraft and net orders stood at 299 aircraft. The Company registered zero cancellations in May and no new orders. During the month, 24 deliveries were achieved from the A220, A320 and A350 XWB aircraft families. Business in May brings the overall total orders logged by Airbus since its creation to 20,407 commercial aircraft, which includes 642 A220s, 15,572 A320 Family aircraft, 1,819 A330s, 930 A350 XWBs, and 251 A380s. In May, Airbus delivered two A220-300 to Air Canada and 18 A320 Family aircraft including the first A320neo to Wizz Air. For Airbus widebody aircraft, four A350 XWBs were provided in both A350-900 and A350-1000 configurations. Airbus’ backlog of aircraft remaining to be delivered as of 31st May stood at 7,621, comprising 527 A220s, 6,199 A320 Family aircraft (including 6,139 A320neo Family), 322 A330s (including 287 A330neo family), 564 A350 XWBs and nine A380s.

More News from the company: Airbus named Anand Stanley as President Airbus Asia-Pacific, effective 1 July 2020. Based in Singapore, Anand Stanley will lead the strategy and future positioning of Airbus and its divisions across the region. In this role he will have responsibility for commercial aircraft sales and customer affairs, group-wide government affairs, industrial and joint venture partnerships, as well as the local operations at Airbus sites across the region. Anand Stanley reports to Christian Scherer, Airbus Chief Commercial Officer and Head of International, and will work closely with the Heads of Region for the Airbus Helicopters and Defence and Space divisions who are co-located at the company’s Asia-Pacific headquarters in Singapore.

Anand Stanley joined Airbus in 2018 as President & Managing Director of Airbus India, where he has overseen the Airbus business development and advanced the company’s position with key stakeholders, including customers, government agencies and industry partners. Prior to joining Airbus, Anand Stanley held senior positions in the civil aerospace, defence and helicopter markets, as well as in strategic management and M&A planning, having worked with the Linde Group, UTC, Pratt & Whitney, Lockheed Martin and Sikorsky. Over his career he has worked extensively internationally, with more than two decades of involvement in Asia and the Pacific region.

“Anand has brought a wealth of experience to Airbus and managed the company’s operations in India with very positive results,” said Christian Scherer. “His proven track record makes him the right choice to lead Airbus in the key Asia-Pacific market. We know that we can count on Anand to focus on supporting our customers in these most challenging times, while developing further our position as the leading partner for the aerospace sector in the region.”

Anand Stanley has an MBA from the University of Virginia-Darden in the US, a Bachelors of Engineering from Andhra University, as well as a postgraduate degree from IMI-Delhi.Anand Stanley succeeds Patrick de Castelbajac, who is leaving Airbus.

“On behalf of all of us at Airbus, I would like to thank my friend Patrick for his contribution and strong engagement during his years with Airbus and wish him all the very best in his personal and professional future,” added Christian Scherer.


Boeing

The Boeing Order Book at the end of April placed some 4,633 Boeing 737 MAX aircraft on order, with some 387 delivered to date.


Other News

Commerce subcommittee to hold hearing tomorrow on role of aviation in mitigating the spread of COVID-19

Washington DC | March 3, 2020–  Today, U.S. Senator Maria Cantwell (D-WA), Ranking Member of the Senate Committee on Commerce, Science, and Transportation, sent letters to major airlines and airports asking for their plans of action in response to the rapidly spreading coronavirus (or SARS-CoV-2, abbreviated as COVID-19) and its effects on commercial aviation and the traveling public. To date, there have been nine coronavirus deaths in Cantwell’s home state of Washington.

The letters come one day before the committee’s Subcommittee on Aviation and Space will hold a hearing on the role of the aviation industry in containing the spread of COVID-19.

“Since COVID-19 was first identified in Wuhan, China late last year, the virus has spread to a number of countries throughout the world, including the United States, by air travel,” Senator Cantwell wrote to major airlines. “This spread has raised understandable concerns by public health officials and the traveling public about measures that can be taken to prevent the further spread of COVID-19 through air travel.”

Senator Cantwell also wrote, “…we want to work with U.S. air carriers to fully understand and mitigate risk to air carrier personnel and the traveling public.” 

In her letters, Cantwell requested specific information regarding pandemic response plans, aircraft and airport cleaning policies, existing protocol for notifying passengers when any serious communicable disease is detected, and flight cancellation policies when a passenger suspects that they have a serious communicable disease.

Senator Cantwell questioned the airlines and airports on the impact to consumers, asking them to detail their policies “for notifying other passengers on a flight or within a terminal where COVID-19 or other serious communicable disease is detected in a person transiting the facility.” 

The full text of the letters can be found HERE and HERE.

London | February 6, 2017– According to the latest procurement intelligence report from Technavio, the global air travel services market is expected to grow at a CAGR of close to 4% over the next five years due to the increase in corporate traveler spending.

The research report titled ‘Global Air Travel Services: Procurement Intelligence Report 2016-2020’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.

“Rapid pace of globalization and rapid expansion of large organizations into emerging markets such as China, India, and Brazil have increased the need for air travel. Growing demand from corporates is a major driving factor. The corporate travel sector is expected to grow at a CAGR of 5% through 2017,” says lead Technavio procurement expert Angad Singh for category spend intelligence.

Request a sample report: http://www.technavio.com/request-a-sample?report=52886

Technavio sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Cost saving opportunities in air travel services

Adoption of various cost optimization levers allows buyers of air travel services to not only realize direct cost savings but also enhance category management and value benefits (such as reduction in procurement complexities).

Technavio procurement experts have segmented the cost saving opportunities in the air travel services market into the following value-enhancement opportunities:

  • Adoption of technology
  • Supplier Competition
  • Adoption of negotiation strategies
  • Optimization of procurement practices
  • Bundling of services

Adoption of technology saving aspects

New types of seating, including economy smart seats with fixed headrests for sleeping and 6-inch adjustable reclining capabilities for spine support, were introduced to enhance ergonomics and differentiate services effectively.

Big Data allows managers to make data-driven decisions and respond appropriately to the fast-changing dynamics in the air travel sector. Smart, analytical tools help marketing and finance departments to sort data rapidly before converting them into actionable insights.

Optimization of procurement practices saving aspects

The performance of suppliers can be linked to a portion of their fee and can be paid upon rendering of services in a satisfactory manner. It is important for category managers to track and measure the performance of suppliers against a set of defined KPIs (that are agreed upon by both parties during the contract negotiation phase).

Before the commencement of contract-related discussions with suppliers, category managers must ensure that they have clearly identified and listed down potential negotiation levers.

Bundling of services saving aspects

Bundling of services allows buyers to mitigate the risks involved in managing multiple aspects of travel management such as booking of hotels, and local transit and destination management. This offers buyers visibility on spend and allows them to negotiate costs better.

  • Boeing-COMAC Sustainable Aviation Technology Center to pursue mutually beneficial research in materials recycling, air travel for aging populations, workplace safety

Zhuhai, China | November 1, 2016– Boeing [NYSE:BA] and Commercial Aircraft Corp. of China (COMAC) today signed a new agreement to expand their joint research collaboration in support of the long-term sustainable growth of commercial aviation.

The two companies, which signed an initial collaboration agreement in March 2012, have been researching ways to improve aviation’s fuel efficiency and greenhouse-gas emissions reduction, including sustainable aviation biofuel and air traffic management (ATM) efficiency.

Through this new agreement, signed at the Zhuhai Airshow, the companies will explore six areas of mutually beneficial research through the renamed Boeing-COMAC Sustainable Aviation Technology Center. They will also continue to exchange commercial aviation market forecasts.

“As we approach the 45th year of collaboration between Boeing and China’s aviation industry, Boeing and COMAC are expanding our efforts to ensure commercial aviation’s long-term sustainable growth, improve its efficiency and reduce environmental impact,” said Ian Chang, vice president, Supplier Management China Operations & Business Development, Boeing Commercial Airplanes. “Our mutually beneficial research with COMAC supports Boeing’s global effort to enable growth and partner to address challenges for our industry.”

“The two companies have enhanced mutual trust and understanding during five years of working together,” said Wu Guanghui, Vice President of COMAC. “The agreement signed today extends and will bring our cooperation to a new level, enabling the two companies to leverage their own advantages for win-win results that can benefit not only China, but also the rest of world.”

Research areas for the Sustainable Aviation Technology Center will include:

  • Technologies supporting sustainable aviation fuel development and assessing the benefit to aviation of using these technologies;
  • ATM technologies and applications;
  • Environmentally sustainable manufacturing, including enhanced recycling of materials;
  • Technologies to enhance the airplane cabin environment related to environmental stewardship and air travel by aging populations;
  • New industry or international standards in aviation energy conservation and emissions reduction;
  • Improvements in workplace safety during cabin and ground operations.

As they have since 2012, Boeing and COMAC will jointly select and fund research by China-based universities and research institutions. Their initial agreement created the Boeing-COMAC Aviation Energy Conservation and Emissions Reductions (AECER) Technology Center. Since then, the Boeing-COMAC AECER Center conducted 17 research projects, leading to an aviation biofuel demonstration facility that turns waste “gutter oil” into jet fuel and three ATM software prototype systems. The Center has attracted participation of 12 domestic and international research partners.

In addition, Boeing and COMAC plan to open a joint venture facility in Zhoushan, China, that will install interiors and paint 737s before Boeing delivers these airplanes to Chinese customers.

China is one of the world’s fastest-growing aviation markets. The Civil Aviation Administration of China has forecast that passenger traffic in China will reach 485 million this year and will reach 1.5 billion passengers in 2030. Boeing has estimated that Chinese airlines will need to purchase more than 6,800 new airplanes through 2035 to meet fast-growing demand for domestic and international air travel.

    • 2015 Air Transport News Awards Recognize SITA’s Leadership and Innovation

Geneva | March 24, 2015– For the second time in the past three years, the Air Transport News (ATN) Awards have recognized air transport IT specialist, SITA, as IT Company of the Year. The 2015 award was based on SITA’s influential leadership and innovation, new solutions and achievements, social responsibility, financial performance and contribution to the air transport community.

Dave Bakker, President, SITA Europe, accepted the award on behalf of Francesco Violante, CEO of SITA, at a special ceremony in Geneva on 21 March. He commented: “SITA is honored to receive this award bestowed on us from our peers. We work with nearly every airline and airport in the world, collaborating to create community value, while exploring new technology that will help shape the future of the industry.”

In recent years, technology has driven substantial changes in both the passenger experience and industry operations. SITA provides the broadest portfolio of solutions for the air transport industry all around the world, in response to community needs. This includes solutions such as SITA’s iBorders Border Management, a fully integrated border management portfolio that helps governments modernize border security and facilitate the travel experience, and AIRCOM® FlightTracker, which guarantees regular flight position updates for flight tracking, but does not require modifications to aircraft.

SITA OnAir is working with airlines to realize the full potential of the connected aircraft, including setting the benchmark for true nose-to-tail connected aircraft solutions for both airlines and passengers. The company’s strategic technology research arm, SITA Lab, innovates on behalf of the air transport community, working with customers to pilot emerging technologies such as wearable technology, geo-localization and big data.

“SITA is 100% owned by the air transport industry, so we make strategic investments, develop new solutions and explore innovations for the benefit of the entire community,” said Bakker. “This award is a true endorsement of our direction and our strategic areas of focus and is thanks to our employees and partners, who are always looking for new ways to add more value.”

ATN has a strong subscription base of more than 42,000. The website’s readers selected all award winners based on two months of online voting, and they were later validated by a jury of industry leaders. SITA also won the ATN IT Company of the Year Award in March 2013.