European airlines: enduring market fragmentation complicates pandemic recovery process

European airlines: enduring market fragmentation complicates the pandemic recovery process

Signs of possible further consolidation in Europe’s airline sector are a reminder of how difficult the recovery from the Covid-19 shock will be for the still fragmented industry, particularly compared with the US, says Scope Ratings.

The unsolicited takeover approach by Hungary-based Wizz Air Ltd. for easyJet PLC earlier this month coincides with new fundraising by easyJet itself, while Deutsche Lufthansa AG (BBB-/Negative) is also planning a capital increase. The three carriers are among the six dominant airlines in Europe alongside Air France-KLM SA, International Airlines Group PLC and Ryanair PLC. Pre-crisis, the five western Europe-based carriers controlled a little more than 50% of the European passenger-travel market whereas the top five US airlines shared around 70% of their domestic market.

“Easyjet rebuffed Wizz’s approach, but we suspect that further consolidation will take place, perhaps just not as fast as it should, given the long-term pressure on profitability exacerbated by the pandemic,” says Azza Chammem, analyst at Scope.

“The European industry remains vulnerable partly because of the overcapacity that makes it nearly impossible for most carriers to build up the resilience they need to cope with the sector’s cyclicality and vulnerability to external shocks unless they are at the bottom of the cost curve like Ryanair and Wizz Air,” says Sebastian Zank, deputy head of corporate ratings at Scope.

ACIA Aero Leasing has acquired its first Embraer E190

ACIA Aero Leasing has acquired its first Embraer E190 this week the leasing firm confirmed. The E-Jet is joining the lessor’s growing fleet as the company evaluates new opportunities as it expands into new markets.

The aircraft, configured with 12 business and 88 economy seats, will undergo a period of maintenance before being offered to prospective airline customers.

Sameer Adam, ACIA Aero Leasing’s Senior Vice President, Commercial, commented that this acquisition represents “a significant milestone in progressing our fleet growth strategy. It is a launching point for engaging airlines interested in the E190/E195 aircraft specifically designed to crossover regional and mainline operations. It also opens up further opportunities to evaluate other portfolio enhancements, including the prospect of adding the next-generation E-Jet E2 family aircraft.”

“As a lessor with an established customer base in regional markets, we have already seen the tremendous impact of regional aircraft in facilitating the recovery of networks on all continents. We are confident that E-Jets will play a key role in the recovery, particularly in the European and North American markets,” asserted Adam. “The E-Jet provides the right blend of operational versatility and efficiency to meet the demands of certain mainline routes and is a good network development tool for airlines striving to adapt to the post-pandemic environment.”

airBaltic receives 31st Airbus A220-300 - YL-ABE joins the fleet.....

airBaltic receives its 31st Airbus A220-300

Whilst many other European airlines are contracting, consolidating and reducing, the Riga based airBatlic is rapidly growing. On 16th  September the airline had its sixth aircraft delivery of the year and its 31st Airbus A220 aircraft. 

This jet, registered as YL-ABE, forms part of an order of 50 Airbus A220-300 airBaltic made with Airbus, which also has options for 30 more aircraft.  

Since the introduction of the Airbus A220-300 aircraft in late 2016, airBaltic has carried over 6 505 932 passengers on the aircraft. Thus far, most passengers have been carried to such destinations as Amsterdam, Paris, London, and Moscow. Airbus A220-300’s have completed over 78 246 flights and flown over 175 312 block hours.

Since May 2020, airBaltic operates all its flights with a single aircraft type – Airbus A220-300, thus minimizing the complexity and benefiting from the additional efficiency provided by the aircraft.

London City Airport boss issues statement on changes to England's travel traffic light system.

Reacting to the UK Government's review of international travel rules, Robert Sinclair, Chief Executive of London City Airport, said:

"We welcome the Government’s decision to ease international travel restrictions next month. The replacement of the traffic light system with a simpler and more-risk based approach is a confidence boost for London City Airport and our airlines heading into the autumn.”

 

We are pleased the Government has decided to exempt fully vaccinated travellers from the complex and costly testing requirements, and the abolition of pre-departure tests, and the ability to use quicker and cheaper lateral flow tests on arrival, will encourage more international visitors and business travellers to fly inbound into the UK.

 

However, traffic remains well below pre-pandemic levels and the aviation industry in the UK has fallen behind other countries in Europe and around the world, which is why we need a stable, consistent and globally harmonized regime, alongside a roadmap for the return of restriction-free international travel for all in the months ahead.

 

Blade Air Mobility Completes Acquisition of Trinity Air Medical, Inc.

Blade Air Mobility, a technology-powered global air mobility platform has confirmed the completion of the previously announced transaction to acquire Trinity Air Medical, Inc. (“Trinity”), a nationwide, multi-modal organ logistics and transportation company.

On September 9, 2021, Blade announced that the Company had signed a definitive agreement to acquire Trinity, subject to customary closing conditions. Under the terms of the agreement, Blade has purchased 100% of the capital stock of Trinity—which generated revenues of approximately $16 million in calendar year 2020—for an upfront purchase price of approximately $23 million and potential additional contingent consideration based on the achievement by Trinity of certain EBITDA growth targets over a three-year period, subject to customary purchase price adjustments. The transaction was completed on September 15, 2021.

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United to start Washington, D.C. - Lagos, Nigeria service in November

It has been confirmed that U.S. mega carrier United Airlines will operate a new African route to Nigeria starting this November. 

The airline expects to start the route between Washington, D.C. and Lagos, Nigeria on 29th November, subject to government approval. It plans to operate the route three times a week on Monday, Thursday and Saturday and return from Lagos on Tuesday, Friday and Sunday. The service will be operated by a Boeing 787 Dreamliner featuring 28 United Polaris business class seats, 21 United Premium Plus premium economy seats, 36 Economy Plus seats and 158 standard economy seats. 

This new flight builds on United's expansion into Africa and solidifies United's leadership position to Africa from the D.C. metro area, with more flights to the continent than any other airline. 

"This new flight to Lagos has been highly anticipated by our customers and offers the first ever nonstop service between Washington, D.C. and Nigeria, as well as convenient, one-stop connections to over 80 destinations throughout the Americas including Houston and Chicago," said Patrick Quayle, United's vice president of international network and alliances. "On behalf of all of United we'd like to offer our sincere thanks to the Nigerian Civil Aviation Authority and U.S. Department of Transportation for supporting our plans to provide this service."

"We are honoured to work with our partners at United Airlines to welcome their second nonstop connection from Dulles International to the African continent," said Carl Schultz, acting vice president of airline business development at the Metropolitan Washington Airports Authority. "Lagos joins nearly 50 other nonstop international destinations currently served by the National Capital Region's gateway to the world."

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Phoenix Police Department to upgrade fleet with five new H125 helicopters

The Phoenix Police Department has signed a new order to upgrade its airborne law enforcement helicopter fleet with five new H125 helicopters. Deliveries are expected to begin next year.

“We spent a lot of time analyzing which platform would best fit all of our operational needs as we began to renew our fleet, and the H125 met all of our requirements,” said Paul Apolinar, chief pilot at Phoenix Police Department. “Our responsibility is to protect and serve the Phoenix community, and these aircraft will allow us not only to protect from the skies, but to perform rescues in remote locations all over Arizona. We needed an aircraft that excels in hot temperatures, and the H125 is really the best aircraft for the job in such conditions.”

Known for its power, versatility and excellent performance in hot and high conditions, the H125 features dual hydraulics, dual channel FADEC, a crash resistant fuel system, and advanced glass-panel cockpit displays. The H125 accounts for nearly half of all intermediate single engine helicopters delivered for airborne law enforcement missions in North America over the last decade. It is built at Airbus Helicopters, Inc.’s production and completion facility in Columbus, Mississippi, by a team made up of 40% U.S. veterans.

“The H125 is one of the most popular law enforcement helicopters in the U.S., for good reason,” said Ron Kelley, airborne law enforcement segment manager at Airbus Helicopters, Inc. “Its versatility and high performance make it an ideal platform for diverse law enforcement missions, including aerial surveillance and search and rescue, and is a proven solution that’s consistently ready for the call when it’s needed most.”

Airbus Helicopters Inc. is the leading supplier of helicopters in the United States, with a presence dating back more than 50 years. A team of more than 700 employees operates local production and completion facilities for the H125 and UH-72 Lakota aircraft in Columbus, Mississippi, and provides world-class training, aftermarket support, and technical assistance from Grand Prairie, Texas, for the North American regional in-service fleet of nearly 3,100 helicopters.

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FedEx Delivers Critical COVID-19 Aid to Indonesia

               FedEx Express, delivered a shipment of 15 pallets carrying COVID-19 swab kits and personal protective equipment to Jakarta, Indonesia.

The critical relief aid arrived in Jakarta on September 14 from New York, USA. These lifesaving medical supplies were coordinated through a collaboration with the US-ASEAN Business Council Institute, the American Indonesian Chamber of Commerce and the Global Task Force on Pandemic Response, a public-private partnership organized by the U.S. Chamber of Commerce and supported by the Business Roundtable to provide a unified platform for businesses to mobilize and deliver resources to assist COVID-19 efforts in areas of the highest need around the world.

“We are honoured to be part of this larger mission to combat COVID-19 in Indonesia. FedEx feels a responsibility to help during times like this, and we are fully committed to delivering vaccines and other critical aid where it’s needed most. As we monitor the developments all around the world, we will continue seeking ways to help the local communities through our expertise and extensive network,” said Kawal Preet, president of the Asia Pacific, Middle East, and Africa (AMEA) region at FedEx Express.

FedEx has moved more than 325 metric tons of personal protective equipment between January 2020 and August 2021 to help support healthcare workers and communities in Indonesia.

The shipment of these lifesaving supplies is consistent with the company’s FedEx Cares 50 by 50 goal to positively impact 50 million people around the world by the company’s 50th anniversary in 2023. Through the FedEx Cares “Delivering for Good” initiative, FedEx lends its global network and unparalleled logistics expertise to organizations with mission-critical needs and helps communities before, during and after crises. Learn more about FedEx Cares Delivering for Good initiative here.

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Mesa Air publishes August results

 Mesa Air Group, has released details of its latest operating performance for August 2021 during which the firm completed 32,501 block hours, a 73.4 percent increase from the same month last year. 

 The Company also reported a controllable completion factor of 99.71 percent and 99.66 percent for its American and United operations, respectively.

Operating statistics for August 2021 and fiscal year 2021 YTD are included in the table below.

	Aug-21	Aug-20	% Change	YTD FY2021	YTD FY2020	% Change
Block Hours
American	12,042	7,136	68.8%	123,421	124,563	-0.9%
United	20,285	11,611	74.7%	168,212	166,767	0.9%
DHL	174	n/a	N/A	2,062	n/a	N/A
Total	32,501	18,747	73.4%	293,695	291,330	0.8%
	Aug-21	Aug-20	% Change	YTD FY2021	YTD FY2020	% Change
Departures
American	6,640	4,089	62.4%	65,648	71,358	-8.0%
United	9,228	5,960	54.8%	78,196	84,222	-7.2%
DHL	122	n/a	N/A	1,349	n/a	N/A
Total	15,990	10,049	59.1%	145,193	155,580	-6.7%
Controllable Completion Factor*
American	99.71%	100.00%	-0.29%	99.46%	99.75%	-0.29%
United	99.66%	99.97%	-0.31%	99.94%	99.94%	0.00%
Total Completion Factor*
American	96.43%	99.46%	-3.05%	96.88%	93.90%	3.17%
United	97.54%	94.98%	2.70%	97.69%	94.97%	2.86%

Operating statistics month over month for the fourth quarter of fiscal year 2021 and QTD are included in the table below.

	Aug-21	Jul-21	% Change	QTD FY2021	QTD FY2020	% Change
Block Hours
American	12,042	12,830	-6.1%	24,872	13,364	86.1%
United	20,285	19,798	2.5%	40,084	22,477	78.3%
DHL	174	215	-19.3%	389	n/a	N/A
Total	32,501	32,843	-1.0%	65,345	35,842	82.3%
	Aug-21	Jul-21	% Change	QTD FY2021	QTD FY2020	% Change
Departures
American	6,640	7,074	-6.1%	13,714	7,665	78.9%
United	9,228	8,984	2.7%	18,212	11,663	56.2%
DHL	122	141	-13.5%	263	n/a	N/A
Total	15,990	16,199	-1.3%	32,189	19,328	66.5%
Controllable Completion Factor*
American	99.71%	97.72%	2.0%	98.68%	99.77%	-1.1%
United	99.66%	99.90%	-0.2%	99.78%	99.69%	0.1%
Total Completion Factor*
American	96.43%	96.47%	0.0%	96.45%	99.46%	-3.0%
United	97.54%	98.30%	-0.8%	97.91%	96.60%	1.4%

*Controllable Completion Factor excludes cancellations due to weather and air traffic control
**Total Completion Factor includes all cancellations

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American Airlines Hispanic Heritage Month: A familia affair

Hispanic Heritage Month: A familia affair

As a child growing up in New York City, Ed Minaya dreamt of a career in law enforcement. After moving to the Dominican Republic in elementary school, Ed’s dreams quickly shifted, but he hoped to one day return to the United States. In 1990, while driving through Santo Domingo, a radio ad caught his attention, announcing that American Airlines was hiring at Las Americas International Airport (SDQ). Ed knew that this job would not only give him the opportunity to serve others, but it would also offer him wings. That radio ad altered the course of his and his family’s story forever.

Ed soon joined American as a Customer Service Agent at SDQ, and his twin sister Hilda quickly followed suit. During his more than 30-year career with American, Ed has held a number of roles at the airline, most recently as a Customer Care Manager at Miami International Airport (MIA). At MIA, he works alongside Hilda and his wife Elizabeth Helver, both Premium Guest Service Representatives, as well as his brother-in-law Ariel Helver, a Facilities Maintenance Mechanic. For the Minayas, working at American is a familia affair.

Icelandair traffic data August 2021

During August, Icelandair saw its number of international passengers and the total capacity increased significantly when compared to August 2020.

The total number of passengers on international flights was over 264,000 compared to around 80,000 in August 2020. Thereof, the total number of passengers on international flights was around 241,000 compared to 67,000 in August 2020 and 195,000 in July 2021. The number of passengers to Iceland was around 145,000 compared to 53,000 in August 2020. The number of passengers from Iceland was around 24,000 compared to 13,000 in August 2020. VIA passengers were 72,000 compared to 1,300 in August 2020 and 51,000 in July 2021. On time performance was 87%.

The load factor on international flights was 71.7% compared to 67.7% in August 2020. It improved from 70.4% in July 2021 despite the rise of the Delta variant in Iceland and in the Company’s key international markets which impacted passenger numbers in August.

The number of passengers on domestic flights was around 22,700 compared to 12,400 in August 2020 and around 24,000 in July 2021.

The number of sold block hours in charter flights increased by 61% compared to August 2020. Freight measured in Freight Tonne Kilometres, increased by 39% compared to August 2020 and has increased by 21% year-on-year during the first eight months of 2021.

Mammoth Freighters Launches Boeing 777-200LR and 777-300ER Freighter Conversion Programs

Mammoth Freighters has launched its Boeing 777-200LR and 777-300ER passenger-to-freighter conversion programme this week. The firm was founded in December 2020 by two highly experienced aviation industry executives, Bill Wagner and Bill Tarpley, both serving as the company’s Co-CEOs. The Company is backed by private investment funds managed by Fortress Investment Group LLC and its affiliates (Fortress). The combination of management expertise and strong financial support has enabled Mammoth to launch its Supplemental Type Certificate (STC) development program with the plan to achieve FAA approval in the second half of 2023.

Mammoth brings a flexible business model to market that provides air cargo operators and asset owners dynamic new options including the ability to provide their own assets for conversion or acquire or lease ready-to-fly converted freighters from Mammoth’s existing feedstock of ten 777-200LR GE90-110B1 equipped aircraft. These assets were acquired from Delta Air Lines and are the largest fleet of -200LR sister aircraft in the world.

The Company, which possesses a Boeing data license to execute 777 passenger-to-freighter conversions, has already made significant progress since it began operations in late 2020. Design and engineering for the 777-200LRMF program is well underway with tooling and parts already in fabrication. The conformity 777-200LR recently completed a comprehensive series of pre-modification flight tests and will commence modification in the second quarter of 2022. Upon certification of the 777-200LRMF, Mammoth expects approval of the 777-300ERMF STC to follow shortly afterwards.