Emirates Airlines, Etihad Airways and Oman Air Propel Global Flight Capacity to Record

April 27, 2011 | Filed under : Airlines News

Propelled by Emirates, Etihad Airways and Oman Air, global flight capacity is poised to soar to “unprecedented” levels in April, according to new figures released by a key data and analysis provider for the aviation industry.

The three carriers operating from the Middle East — the fastest growing market in terms of capacity — are due to deliver an 11 per cent increase in capacity for the region in April, said the UK-based Official Airlines Guide, or OAG, in its monthly snapshot of airline activity.

Other carriers driving the region’s capacity growth are Qatar Airways and low-cost carriers Air Arabia and flyDubai.

The capacity growth forecast for the Middle East far exceeds the five per cent global flight capacity growth expected in April.

The unprecedented capacity surge comes at a time when world’s airlines continue to adjust their schedules and capacity daily to meet fluctuating demand in the wake of Japan’s devastating earthquakes and tsunami.

The report showed that airlines around the world will provide 317.4 million seats to passengers during the month of April in 2011. “This figure is five per cent higher than at the same time in 2010, or 13.9 million more seats, and represents the highest capacity ever provided by the industry,” the OAG said in its April Frequency and Capacity Trend Statistics report.

Frequencies have also been rising, up three per cent, or 80,653 more flights scheduled to operate worldwide in April 2011 compared to April 2010.

The Asia-Pacific region will be served with an extra 6.2 million seats by airlines during the month of April this year. Europe will see a three per cent increase in the number of seats offered by budget carriers in April, compared with the same month last year.

“The fastest-growing market by volume of seats is to and from the Middle East, with an 11 per cent increase in capacity year on year. However, political events in the region will likely have an effect on sustaining this level of scheduled capacity,” the report observed.

Giovanni Bisignani, director general of the International Air Transport Association (IATA), said air passenger traffic was picking up in the Middle East after the region was torn by instability but warned airlines would have to wait until after the summer for a recovery in Japan.

IATA, which represents the majority of world airlines, said the industry was also reeling from a $30 billion rise in its fuel bill this year due to the Arab unrest. IATA had previously said the March 11 Japanese earthquake and subsequent nuclear crisis would cause a major slowdown from which airlines would not recover before the second half.

“We will have to see the numbers for April because March is not a big indicator, but there will be a big effect,” Bisignani said.

The Association of British Travel Agents, or ABTA, said Dubai and Florida holidays are among the popular travel destinations along with Spain, the most popular destination for Britons, with the ever-popular Costa del Sol and the Canary Islands attracting large throngs of holidaymakers.

ABTA said travellers in the UK are taking advantage of the extra bank holiday provided for the royal wedding, with workers only needing to take three days off to enjoy an 11-day holiday. Two million holidaymakers in the UK will be heading for holidays abroad over the Easter period.

OAG said in terms of absolute growth, the intra-Asia Pacific region is the clear leader with more than 6.2 million additional seats and 40,203 more published flights this month against April 2010.

Over the last five years, figures within the Asia Pacific region have shown average capacity growth of seven per cent compared to the global average of four per cent.

Analysis of the European market reveals marginal growth of 0.3 per cent in frequencies and two per cent in capacity for services within the region.

American Airlines Lobbied Congress to Delay Legislation Tarmac Regulation

American Airlines spent $1.58 million to lobby Congress and executive branch agencies in the fourth quarter on legislation to limit tarmac delays and other issues.

American weighed in on bills in the House and Senate that would require airlines to give passengers a chance to get off a plane if it’s stuck on the tarmac for at least three hours.

American Airlines spokeswoman Mary Frances Fagan said Monday the company would have preferred a 4-hour limit.

The Transportation Department beat Congress to the punch by announcing in December a new rule to take effect in late April that includes a 3-hour limit. The airline industry has argued that the rule will cause carriers to cancel more flights rather than risk fines of up to $27,500 per passenger.
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Airline Loss Estimate Cut by 50% as Demand Rebounds

March 13, 2010 | Filed under : American Airline, British Airways, Delta Air Lines

Airlines worldwide will lose a collective $2.8 billion in 2010, half the previous forecast, as emerging markets lead a rebound in traffic, the International Air Transport Association said.

The loss estimate was cut from $5.6 billion after a “much stronger recovery in demand” at the end of 2009 that continued into the first months of this year, the Geneva, Switzerland- based association said in a statement today.
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American Airlines Steps Up Efforts To Woo JAL

December 9, 2009 | Filed under : Airline Flight, Airline Industry, Airlines Companies

american-airlines-companyAmerican Airlines on Thursday stepped up efforts to save its partnership with Japan Airlines, the troubled carrier that is the lynchpin of its Asian network, by promising a $1.1bn investment to support the group.

The investment – much of which would be provided by US private equity group TPG – exceeds a rival offer from Delta Air Lines, which is trying to lure JAL away from Amercian’s OneWorld alliance.

Last month Delta and its SkyTeam partners offered to inject $500m of new equity into JAL and to extend another $500m in asset-backed financing and compensation for the cost of switching teams.
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Japan Airlines to Cut Jobs, Pursue Alliance

September 16, 2009 | Filed under : Airline Industry, Airlines Companies

Japan Airlines Corp. confirmed tie-up talks with foreign carriers and said it would slash its work force by 14% as the struggling carrier seeks to escape its long malaise.
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Airlines Halt Premium Slide at Expense of Price Cuts

August 20, 2009 | Filed under : Air Travel, Airline Service, Aviation

The decline in premium air travel slackened in June after carriers slashed prices to fill seats.

First- and business-class traffic fell 21.3 percent from year-ago levels, compared with a 23.6 percent drop in May, the International Air Transport Association said today. The decline was the least since March. Read more

Japan Airlines Post $1 Billion Q1 Loss News

August 8, 2009 | Filed under : Airline Flight, Airline Industry, Airlines Companies

Japan Airlines Corp (JAL) said on Friday it suffered a US $1 billion loss in the April-June quarter which is larger than its loss for the entire last year. The carrier’s revenues took a heavy hit under the double whammy of the economic downturn and the outbreak of swine flue resulting in a net loss of ¥99.04 billion in the three months ended 30 June. Read more