We are roughly six months into the COVID-19 global pandemic and in that time-frame our industry, and many others, have witnessed some radical and dynamic shifts. As we know, the leisure and family holidays have almost been eradicated with COVID. The air travel industry prior to the pandemic hummed along with business travel accounting for approximately 60% – 70% of all airline revenue, but perhaps the greater worry is the shift to webinars, ZOOM, Skype and many other forms of internet meetings, which may turn out to be the bigger sucker-punch, resulting in the cancellation of business travel with longer fiscal consequences. And some analysts are predicting that it will take a little more than 3 years for business travel to begin to rebound.

In the meantime, there is no end in sight from the move to remote work. Over the past few months many major companies have announced some form of permanent or long-term work-from-home scenarios. COVID-19 has shown and convinced companies such as REI, Ford, Twitter and others that their employees are capable of performing their jobs at home, and may even be performing better. The result is a massive reduction in the corporate office footprint. The uptick is these companies will save huge leasing costs and their employees will be thrilled they no longer face heinous daily commutes, but what will be the ancillary costs – and there will be inevitably be some. And one of these may well be a reduced need for business travel.

As with any crisis, the longer it goes on the more we learn. And often, our initial attempts to improve a process or make a situation safer are either in vein or are proven to be ineffective, or possibly counter productive, over time. In the case of the pandemic and airlines, one such circumstance may turn out to be the changes which were implemented in the boarding process. In an effort to minimize close contact between passengers, several U.S. carriers and some international carriers, began to board their flights from the rear of the jetliner to the front. New research is now indicating that it may actually do the opposite! Scientists from the USA have recently found that starting the boarding process from the back rows actually increases the amount of time spent by passengers milling about in the aisles to load bags in the overhead compartments prior to taking their seats.

But the boarding procedure is merely one example of how airlines are stumbling to make travel safe during COVID-19, and lure back passengers. Inconsistent policies in regards to leaving the middle seat vacant are also being instituted and so far there is no scientific evidence to back the benefit and/or necessity of doing so. Needless to say, there are large holes in both the data and the research, which inevitably bogs down the path forward. We are experiencing a situation where there is a vast amount of expert opinions but there is a scarcity of good data to back them up. And we are dealing with a leery, fearful public.

Another area that is a source of confusion and concern for the passenger is cabin air quality and the air filtration system on an airplane. As many of us in the industry know, the air in the cabin of an aircraft is passed through filters that are equal to those used in hospital operating rooms, thus there seems to be minimal danger of infection from circulated air but this is not common knowledge to the average passenger. However, the risk is in the cabin long before the air is recirculated. When we talk, cough, or sneeze respiratory droplets are released which will go to the passenger next to you long before they get circulated through the jetliner’s air filtration system. In fact a government-funded 2012 study concluded that between 3 – 20 passengers on a flight of four hours onboard a twin-aisle that were seated near a person with influenza would most likely become infected – and the flu is thought to be less contagious than COVID-19. The study also showed that if passengers wore N95 masks (high quality masks worn by medical workers in dangerous environments but not widely available to the general public) that the odds of infection dropped to nearly zero. The study did not analyze the benefits from wearing cloth face masks but the researchers predict they would decrease the likelihood of contracting the virus but not be as effective a N95.

A more recent 2018 study that was published by the National Academy of Sciences stated that there was a ‘high probability’ that passengers seated within one row of a traveler with influenza would be infected on a trans continental flight.

The aviation industry in the U.S.A. has been adhering to the advice of the Center for Disease Control and Prevention and so far there have been ‘no known cases’ of infection from COVID-19 onboard U.S. flights. The industry has been nimble in their reactions to a rapidly evolving situation and has been working in conjunction with medical experts on decisions pertaining to cleaning and operational procedures. No-contact check-in is another example. But needless to say the issue begs for more research. Enforcing the necessity of wearing masks, plane disinfecting and other safety procedures are all logical, but unfortunately there is currently no solid evidence to show that these precautions will overcome the risks of the tight environment of the jetliner cabin.

Lastly, since 2015 the Government Accountability Office has been calling for a plan to respond to a pandemic scenario but so far government agencies have been unwilling to draw up a formal plan for the aviation sector.

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SmartSky Networks

SmartSky Networks has filed a federal lawsuit against its former radio contractor, Wireless Systems Solutions LLC (WSS), after terminating the WSS contract and asserting that WSS misappropriated SmartSky’s intellectual property. SmartSky’s lawsuit alleges improper actions by WSS, two related entities (DAG Wireless LTD and DAG Wireless USA), and three of their senior leaders.

“We have pledged to defend our intellectual property vigorously because it is critical to our success. In this situation, WSS failed to complete what it was contracted to do for SmartSky.  Simultaneously, we believe WSS attempted to sell our product as its own, including through an alter-ego company formed after we began working with WSS yet involving the same people,” said Ryan Stone, SmartSky President.

“This activity has caused a delay in SmartSky bringing our next-generation WiFi network to the aviation market,” Stone said. “We’re transferring WSS’s former work scope to contractors who have performed well for us in the past on other aspects of our program.”

SmartSky recently closed on more than $40 million in additional equity funding, $10 million in new debt, and now expects to launch its network in 2021. Demand is increasing for connectivity on aircraft, and SmartSky believes there is plenty of runway for innovation in this space.

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Gogo

Gogo Inc.commented on the disclosure that certain affiliates of GTCR, a leading private equity firm, have acquired a 14.8% interest in Gogo’s common stock.

“We welcome GTCR’s interest in Gogo and look forward to an ongoing and constructive dialogue as we execute our strategic plan,” said Oakleigh Thorne, Gogo’s President and CEO. “We believe GTCR shares our vision for Gogo and the opportunity to continue to create value for all shareholders.” “We believe Gogo’s decision to focus on its leading business aviation business will create a stronger company that is well-positioned to grow in an attractive market,” said Mark Anderson, Managing Director at GTCR. “We look forward to supporting Gogo as it completes the sale of the commercial aviation business and seeks to capitalize on the compelling opportunity in business aviation.”

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Some Stumbling Blocks with Facial Recognition

An audit of Transportation Security Administration (TSA) and Customs and Border Protection (CBP), the GAO found facial recognition programs fell short in a few areas:

• Performance tracking. Although the tech accurately identified over 90% of those exiting the U.S. by air, it didn’t consistently photograph all travelers—and there’s no mechanism to alert officials when the technology misses minimum requirements.
• Partner audits. CBP can conduct audits on all of its partners, but as of May, it had audited just one of more than 27 airlines.
• Clear communication. U.S. citizens and eligible non-citizens can opt out of facial recognition, but CBP consistently failed to make that known.
• According to CBP officials, a t the end of 2019, out of 16 million passengers scanned, facial recognition helped identify seven “impostors”.
• Zoom out: Facial recognition technology still has many issues and glitches, which include racial and gender biases. And the probability of a false positive are very high.

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Other News

• If you are an earphone addict like we are, keep your eyes open for the coming next generation of in-ear headphones (No wires) –
  Bose announces $279 QuietComfort Earbuds and $179 Sport Earbuds – The Verge
• US DOT reports 18 US airlines carried 21.4m pax in July, down 73% vs July 2019, but up 30% from 16.5m in June 2020. – source: Speednews
• If you are curious about the western fires in the USA, here are some pictures. And yes, we are smoked out! Western wildfires rage in California, Oregon and Washington – in pictures | World news | The Guardian

Dublin | June 22, 2020– The “Passenger Air Transport Industry 2020-2030 – COVID-19 Impact and Recovery Assessment” report has been added to ResearchAndMarkets.com’s offering.

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography. It places the market within the context of the wider passenger air transport market, and compares it with other markets.

The global passenger air transport market is expected to decline from $641.8 billion in 2019 to $628.8 billion in 2020 at a compound annual growth rate (CAGR) of -2.1%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 8% from 2021 and reach $765.1 billion in 2023.

Asia-Pacific was the largest region in the global passenger air transport market, accounting for 30% of the market in 2019. North America was the second largest region accounting for 30% of the global passenger air transport market. Africa was the smallest region in the global passenger air transport market.

Mobile technology and applications are becoming a latest trend in passenger air transportation industry. Passengers are using mobile-enabled applications to book their tickets and manage their journey. Passengers want personalized information about their flight, their baggage and how to find their gate directly on their mobile device. Alaska Airlines, American Airlines, Delta Air Lines, Frontier Airlines, and Hawaiian Airlines are providing these mobile apps to book a flight ticket.

Report Scope

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, the impact of the Covid 19 virus and forecasting its recovery.
• Market segmentations break down market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the impact and recovery trajectory of Covid 19 for all regions, key developed countries and major emerging markets.
• Competitive landscape gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
• The passenger air transport market section of the report gives context. It compares the passenger air transport market with other segments of the air transport market by size and growth, historic and forecast. It analyses GDP proportion, expenditure per capita, passenger air transport indicators comparison.

Key Topics Covered

1. Executive Summary

2. Report Structure

3. Passenger Air Transport Market Characteristics

3.1. Market Definition

3.2. Key Segmentations

4. Passenger Air Transport Market Product Analysis

4.1. Leading Products/Services

4.2. Key Features and Differentiators

4.3. Development Products

5. Passenger Air Transport Market Supply Chain

5.1. Supply Chain

5.2. Distribution

5.3. End Customers

6. Passenger Air Transport Market Customer Information

6.1. Customer Preferences

6.2. End Use Market Size and Growth

7. Passenger Air Transport Market Trends And Strategies

8. Passenger Air Transport Market Size And Growth

8.1. Market Size

8.2. Historic Market Growth, Value ($ Billion)

8.2.1. Drivers Of The Market

8.2.2. Restraints On The Market

8.3. Forecast Market Growth, Value ($ Billion)

8.3.1. Drivers Of The Market

8.3.2. Restraints On The Market

9. Passenger Air Transport Market Regional Analysis

9.1. Global Passenger Air Transport Market, 2019, By Region, Value ($ Billion)

9.2. Global Passenger Air Transport Market, 2015-2019, 2023F, 2025F, 2030F, Historic And Forecast, By Region

9.3. Global Passenger Air Transport Market, Growth And Market Share Comparison, By Region

10. Passenger Air Transport Market Segmentation

10.1. Global Passenger Air Transport Market, Segmentation By Type, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion

• Domestic Air Passengers
• International Air Passengers

10.2. Global Passenger Air Transport Market, Segmentation By Class, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion

• Business Class
• Economy Class

11. Passenger Air Transport Market Metrics

11.1. Passenger Air Transport Market Size, Percentage Of GDP, 2015-2023, Global

11.2. Per Capita Average Passenger Air Transport Market Expenditure, 2015-2023, Global

Companies Mentioned

• American Airlines
• Delta Airlines
• UnitedContinental
• Deutsche Lufthansa
• Air France KLM

For more information about this report visit https://www.researchandmarkets.com/r/syslym

 

June 23, 2020–

Our global air transport industry is grappling with one of the single biggest challenges it has ever faced: how to recover from an historic decline in air travel, caused by COVID-19.

While we’re seeing travel restrictions starting to ease, and the ATI beginning to remobilize, no-one knows exactly what the next few months will bring.

What is clear, however, is that the industry will need to be able to adapt to a new – and changeable – operating environment; one that requires operators to keep passengers feeling safe and reassured, keep flights to time, and meet sustainability targets – all on a tightened budget.

Digitalization is vital here. Airlines and other businesses are going to need the flexibility, adaptability and automation offered by digital transformation to ride out the pandemic’s fall-out, adjust their business models and succeed into the future. To help them do it, they’ll need the right mix of solutions and expertise on their side.

Digitalizing to adapt to the needs of the future

Many airlines are facing restart with a scaled back and more scattered workforce. They are also weighing up a lot of big unknowns: which routes should be reopened and when, depending on country restrictions? How many passengers will return, and how quickly? Which aircraft should fly or be grounded? And what size flight and cabin crew will they need to serve them?

Airlines are facing all these questions, while knowing the rules could change from one day to the next.

Digitalizing technologies and innovations enable enhanced air/ground connectivity, communications and operational efficacy, and pool the latest real-time information, to support informed and timely decision-making. These prime resources help airlines flex and adapt to changing needs. While ideally being fast and simple to deploy, and intuitive to use, digital tools can also streamline routine tasks through automation to minimize workload.

Such solutions are very much the remit of SITA FOR AIRCRAFT, SITA’s connected aircraft domain of expertise.

Digitalizing to work smarter and leaner

We have developed a suite of connected applications and services, and technological capabilities that help airlines work in this more flexible, adaptive, automated and collaborative way.

They help bring enhanced operational- and cost-effectiveness, while giving greater visibility over the ‘live’ nose-to-tail operation – whether that’s around situational weather events or restrictions, identifying the least cost-routing channels available for ACARS messaging, the status of passenger, cargo and aircraft health, or fueling requirements.

With our crew applications, airlines can ensure passenger safety and satisfaction onboard, while alleviating paper-based processes to make flights more sustainable.

Our cabin connectivity solutions, meanwhile, give passengers the low-touch autonomy they desire, enabling them to use their own devices to surf, stream, and pay and verify, contact-free.

And, for all our solutions and services, we strive to work closely with customers to develop flexible business models that can readily adapt to reflect needs as they change.

We’re here to help you through

In my new role heading SITA FOR AIRCRAFT, I am proud to play a part in advancing the flexible, agile solutions that can support our customers through this challenging time. We’re 100% dedicated to this industry and its success – and are here to help it navigate the right path to recovery.

Find out more by exploring sita.aero/aircraft

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!

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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.

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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.

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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.

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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.

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Other News

• When 511 Epidemiologists Expect to Fly, Hug and Do 18 Other Everyday Activities Again – The New York Times
• Last week we wrote a little piece on the Falcon9 rocket used in SpaceX’s launch. The folks at Ars Technica did a great piece on the folks who made it happen – Forget Dragon, the Falcon 9 rocket is the secret sauce of SpaceX’s success | Ars Technica
• Are you familiar with a “helicopter airline”? Why Helicopter Airlines Failed – YouTube
• Windows XP outdoor image (“Bliss”) has a lot more development info than you ever thought of – and, you won’t believe the cost or the history! How ‘Bliss’ Became The Most Famous Photograph Ever Taken – Digg
• Did you know that SpaceX has been involved in the rocket launch business for 10 years? Looking Back at 10 Years of Falcon 9 Launches | SpaceX’s Falcon 9
• In an aviation article found in DAILY PNUT, Dave Epstein wrote about COVID-19: “It’s worth noting that countries more successful in fighting the disease — like Germany, New Zealand and Taiwan — are all run by women.”
• In a recent article in The New York Times, the average US respondents on flying gave these statistics as to when they would fly.  Now: 7%, Summer: 12%, Fall: 13%, Winter: 15%, Next Spring: 16%, and in +1 year: 37%. OUCH!
• Attention Passengers: Here’s Why You Shouldn’t Wear While Flying – Post Fun