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    Air cargo buoyed by easing of Omicron restrictions in China

    The International Air Transport Association (IATA) released May 2022 data for global air cargo markets showing that the easing of Omicron restrictions in China helped to alleviate supply chain constraints and contributed to a performance improvement in May.
    Note: We returned to year-on-year traffic comparisons, instead of comparisons with the 2019 period, unless otherwise noted.
    Global demand, measured in cargo tonne-kilometers (CTKs*), was 8.3% below May 2021 levels (-8.1% for international operations). This was an improvement on the year-on-year decline of 9.1% seen in April.
    Capacity was 2.7% above May 2021 (+5.7% for international operations). This more than offset the 0.7% year-on-year drop in April. Capacity expanded in all regions with Asia-Pacific experiencing the largest growth.
    Air cargo performance is being impacted by several factors.
    Trade activity ramped up slightly in May as lockdowns in China due to Omicron were eased. Emerging regions also contributed to growth with stronger volumes.
    New export orders, a leading indicator of cargo demand and world trade, decreased in all markets, except China.
    The war in Ukraine continues to impair cargo capacity used to serve Europe as several airlines based in Russia and Ukraine were key cargo players.
    “May offered positive news for air cargo, most notably because of the easing of some Omicron restrictions in China. On a seasonally adjusted basis, we saw growth (0.3%) after two months of decline. The return of Asian production as COVID-19 measures eased, particularly in China, will support demand for air cargo. And the strong rebound in passenger traffic has increased belly capacity, although not always in the markets where the capacity crunch is most critical. But uncertainty in the overall economic situation will need to be carefully watched,” said Willie Walsh, IATA’s Director General.
    May Regional PerformanceADVERTISEMENTAsia-Pacific airlines saw their air cargo volumes decrease by 6.6% in May 2022 compared to the same month in 2021. This was a significant improvement over the 15.8% decline in April. Airlines in the region have been heavily impacted by lower trade and manufacturing activity due to Omicron-related lockdowns in China however this started to ease in May as restrictions were lifted. Available capacity in the region fell 7.4% compared to May 2021.
    North American carriers posted a 5.7% decrease in cargo volumes in May 2022 compared to May 2021. Demand in the Asia-North America market remained subdued, however, other key routes such as Europe – North America remain strong. Capacity was up 6.8% compared to May 2021. Several carriers in the region are set to receive delivery of freighters this year, which should help address pent-up demand on routes where it is needed if economic headwinds don’t persist.
    European carriers saw a 14.6% decrease in cargo volumes in May 2022 compared to the same month in 2021. This was the worst performance of all regions. This is attributable to the war in Ukraine. Labor shortages and lower manufacturing activity in Asia due to Omicron also affected volumes. Capacity increased 3.3% in May 2022 compared to May 2021. 
    Middle Eastern carriers experienced a 11.6% year-on-year decrease in cargo volumes in May. Significant benefits from traffic being redirected to avoid flying over Russia failed to materialize. This is likely due to persisting supply chain issues in Asia. Capacity was up 7.6% compared to May 2021.
    Latin American carriers reported an increase of 13.8% in cargo volumes in May 2022 compared to May 2021. This was the strongest performance of all regions. Airlines in this region have shown optimism by introducing new services and capacity, and in some cases investing in additional aircraft for air cargo in the coming months.  Capacity in May was up 33.3% compared to the same month in 2021.
    African airlines saw cargo volumes decrease by 1.5% in May 2022 compared to May 2021. This was significantly slower than the growth recorded the previous month (6.3%). Capacity was 3.0% above May 2021 levels.

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    Governments must help aviation more to reach net zero, says IATA

    The International Air Transport Association (IATA) called for governments to urgently put in place large-scale incentives to rapidly expand the use of sustainable aviation fuels (SAF) as aviation pursues its commitment to achieving net zero carbon emissions by 2050.
    To fulfil aviation’s net zero commitment, current estimates are for SAF to account for 65% of aviation’s carbon mitigation in 2050. That would require an annual production capacity of 449 billion liters. Investments are in place to expand SAF annual production from the current 125 million liters to 5 billion by 2025. With effective government incentives, production could reach 30 billion liters by 2030, which would be a tipping point for SAF production and utilisation.
    “Governments don’t need to invent a playbook. Incentives to transition electricity production to renewable sources like solar or wind worked. As a result, clean energy solutions are now cheap and widely available. With similar incentives for SAF, we could see 30 billion liters available by 2030. Though still far from where we need to be, it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices,” said Willie Walsh, IATA’s Director General at the 78th IATA Annual General Meeting in Doha, Qatar.
    In 2021, irrespective of price (SAF is between two and four times the price of conventional jet fuel), airlines have purchased every drop of the 125 million liters of SAF that was available. And already more than 38 countries have SAF-specific policies that clear the way for the market to develop. Taking their cue from these policy measures, airlines have entered into $17 billion of forward-purchasing agreements for SAF.
    Incentives to ramp-up productionFurther investment in production needs support from the right policies. This would boost supply and drive down costs.ADVERTISEMENTElectricity production through solar or wind power faced similar hurdles as these technologies replaced fossil fuels. With effective policy incentives, both are now affordable and widely available.
    By applying similar incentive-based policies to SAF, governments can support global SAF production to reach 30 billion liters by the end of the decade. This would be a tipping point as it would send a clear signal to the market that SAF is playing its intended long-term role in aviation’s decarbonisation and encourage investments to drive up production and drive down the price.
    The market for SAF needs stimulation on the production side. The United States is setting an example for others to follow. Its SAF production is expected to reach 11 billion liters in 2030 on the back of heavy government incentives.
    Europe, on the other hand, is the example not to follow. Under its Fit for 55 initiative, the EU is planning to mandate that airlines uplift 5% SAF at every European airport by 2030. Decentralising production will delay the development of economies of scale. And forcing the land transport of SAF will reduce the environmental benefit of using SAF.
    Other propulsion technologiesHydrogen and electrically powered aircraft are part of aviation’s plan to achieve net zero emissions by 2050, but they are likely to be limited to short-haul routes. SAF is the proven solution for long-haul flying.
    “Hydrogen and/or electric propulsion systems will most likely be available for short haul commercial flights by 2035, but the majority of emissions come from long-haul widebody flights and to tackle these emissions, SAF is the only proven solution. We know it works, and we need to double down our efforts to get all actors of the industry on board, including governments, to increase production, availability, and uptake” said Sebastian Mikosz, IATA’s Senior Vice President for Environment and Sustainability.
    Net zero and long-term aspirational goalIn October 2021, IATA member airlines came together and took the monumental decision to commit to achieving net zero emissions by 2050. This commitment brings the industry in line with the Paris Agreement’s 1.5°C goal. Climate change is the greatest threat facing our societies and achieving net zero emissions will be a huge challenge as the expected scale of the industry in 2050 will require the mitigation of 1.8 gigatons of carbon.
    To provide the right set of consistent policies and long-term stability needed for investments, the aviation industry is calling on all governments to support the adoption of a long term climate goal for air transport at the 41st Assembly of the International Civil Aviation Organization (ICAO) this September, aligned with industry commitments. This climate goal is critical to back up the industry’s decarbonisation ambitions and would provide a global multilateral framework for action without distorting competition.

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    PATA and OAG strengthen organisational partnership

    The Pacific Asia Travel Association (PATA) has announced a new preferred partnership with OAG, a leading data platform for the global travel industry.
    The new agreement will provide PATA members with continued access to unique and reliable aviation data through the PATAmPOWER platform. It will also enable both organisations to provide wider insight and intelligence to the Asia Pacific visitor economy, through events, analysis, and further data collaboration.
    OAG has the world’s largest network of flight information, covering the whole journey from planning to customer experience. The data helps businesses achieve many goals, principally by finding new revenue streams, driving growth across operations, and deepening the relationship with customers.
    Its customers include search engines, metasearch, tech start-ups, travel booking sites, international government organisations, global financial institutions, airlines, airports, and travel operators.
    “Strengthening our partnership with OAG ensures we can provide members with the highest quality, most reliable aviation data including historical data (back to 2018) and 12-month forward frequency and seat capacity data. This will enable them to make smarter and more insightful decisions as they plan their recovery strategies,” said Santosh Kumar, Director of Business Development, PATA. “I look forward to leveraging OAG’s data and insight to assist us in our mission for the responsible development of travel and tourism to, from and within the Asia Pacific region.”ADVERTISEMENT“Our deeper partnership with PATA will provide richer data insights to facilitate market recovery and future investment in the region” said Mayur Patel, Head of Sales, Asia. “As Asia Pacific air travel embarks on its own come back journey, having access to data, networks and knowledge through this collaboration will equip PATA members will vital insight to get ahead of the curve”.

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    PATA: Positive increases in IVAs predicted

    The Pacific Asia Travel Association (PATA) is pleased to release its latest quarterly updated international visitor arrivals (IVAs) forecast current to May 6, 2022, based on the data provided by 39 Asia Pacific destinations. In line with the start of the region’s travel recovery, aggregate numbers into the 39 Asia Pacific destinations are projected to have step-wise annual increases beginning in 2022 and continuing to 2024 across all three of the mild, medium, and severe scenarios.
    IVA recovery rates (above 2019 baseline level) for visitors into and across Asia Pacific is predicted to reach between 25-48% of the volume last received in 2019, with the numbers reflecting the range of potential outcomes from a severe to a mild scenario. This is a solid improvement over the 16-18% range of 2021 – the trough year for most Asia Pacific destinations – and heralds the beginning of a continued growth trend to 2024.

    The number of foreign arrivals into and across Asia Pacific is still projected to either reach parity with the 2019 position (medium scenario) or be well above it (mild scenario) by 2024. Even so, the severe scenario reminds us that a possibility still exists for conditions to deteriorate once again – with multiple influencing factors including the ongoing pandemic continually evolving, the Ukraine/Russia crisis, escalating jet fuel prices, and limited air capacity and routes, plus industry-wide staff shortages.
    While annual growth is predicted to occur for each of the 39 destinations covered between 2022 and 2024, there will of course be some variations. This is illustrated by the differences in relative positions for each of the three destination regions of Asia Pacific, as well as under each of the three scenarios within each of those regions.ADVERTISEMENT
    At the individual destination level, recovery rates vary broadly in 2022 and are predicted to range from less than 15% to almost 99%, while in 2024, they range from 86% to 120% under that same scenario. Overall, however, projections are now for Asia Pacific to reach an IVA count in 2024 of 510-832 million, depending on which scenario plays out over that period.
    Similar variations are apparent across the source market regions relevant to Asia Pacific, although in general, the trend is back towards the same inbound structure of 2024, at least under the medium scenario.
    As PATA CEO Liz Ortiguera observes “While a positive turning point is predicted to occur in 2022 for all the 39 Asia Pacific destinations covered in these updated forecasts, many market variables are currently influencing travel and significant challenges still lay ahead. While the momentum for international travel demand is obviously increasing, multiple challenges need to be navigated by the global travel and tourism sector.”
    “From emerging new strains of the SARS-CoV-2 virus to escalating jet fuel prices, the spectre of rising inflation to the current geo-political conflicts, these variables are concerns in the face of global pent-up demand to reconnect and travel.”
    Ms. Ortiguera concludes by reminding the travel and tourism sector that “Safety, wellness and smooth travel experiences are top of mind as needs for post-pandemic travellers.  It’s important to provide clarity in processes and deliver good customer support in the face of ever-changing circumstances.Recognition should go to all the travel and tourism staff that are enabling efficient and great travel service delivery and experiences in the face of all these challenges. We need to respect and applaud their efforts as the backbone of the industry through these challenging times.”
    The PATA Asia Pacific Visitor Forecasts 2022-2024: 2Q Updates is now available at https://www.pata.org/visitor-forecasts.
    What you will learn from this report:Updated international visitor forecasts for Asia Pacific between 2022 and 2024 by destination region, sub-region, and destination, highlighting changing demand preferences in the face of policy changes.
    Updated forecasts and recovery patterns for 39 individual destinations allowing for the development of better recovery strategies for the post-COVID-19.
    PATA International members have exclusive access to the recording of the, PATA Visitor Forecasts 2022 to 2024: 2Q Updates’ webinar which included expert speakers from The Hong Kong PolyU, Euromonitor International, Visa, and OAG. The speakers provided an overview of the updated forecasts for international arrivals to Asia Pacific between 2022 and 2024 as well as latest insights into key source markets’ traveller behaviour and Asia’s capacity rebuild and changing supply structures.

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    Qatar Airways collaborates with GE Aviation and IATA to generate the leadership programme

    Qatar Airways and GE Aviation have joined forces to launch a customised training programme under the name ‘Leadership, Future and Culture’ (LFC). National Senior Managers of Qatar Airways attended this one-week course, which was designed for them to connect and enrich their leadership skills.
    The ‘Leadership, Future and Culture’ training programme was created to enable National participants to develop a better understanding of different ways to further evolve and shape the future of leadership in Qatar’s culture. Employees from other sectors and industries in the aviation field have also participated in this programme, which has benefitted Nationals in learning from other leaders and gain different perspectives. GE experts also displayed a number of ways to facilitate leadership skills through the emphasis of fostering teams by covering topics on Leading in 2025, Coaching as an Alternative Mode, Neuroscience of Success, and Storytelling.
    Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “The Al Darb Qatarisation programme continually provides unique opportunities for Nationals designed to elevate them to excellence and success. Within this framework, Qatar Airways strives to further support the community and gear up for the future. Through this special programme collaboration with GE Aviation, National Senior Managers acquired the necessary information to boost their leadership skills and reinforce their knowledge on perseverance and maintaining smart objectives, as well as helping them facilitate an efficient working environment within Qatar Airways”.
    Qatar Airways Senior Vice President Nationalisation and Special Projects, Ms. Nabeela Fakhri, said: “Qatar Airways has always sought to enhance its employees’ careers, by providing the best innovative training programmes to develop and further enrich their skills and abilities. By providing our National Senior Managers with this unique training programme, we are ensuring the progress and professional development of our National leaders, while asserting Qatar Airways leading position”.
    GE Aviation General Manager Sales Middle East, Mr. Main Canaan, said: “GE Aviation was proud to partner with Qatar Airways and GE Crotonville to deliver the (LFC) program. Crotonville was established in 1956 is believed to be the world’s first corporate university. Its mission is to inspire, develop and connect the leaders of today and tomorrow and as such, it represents the very epicentre of GE culture and learning. The Leadership, Future & Culture program was specially designed for selected strategic customers to replicate the type of learning experience GE leaders receive at the Crotonville campus. We were pleased to share GE’s approach to leadership development with Qatar Airways and look forward to continuing this leadership journey with future participants”.ADVERTISEMENTThe ‘Leadership, Future and Culture’ programme was held in Ossining, New York at Crotonville, in GE’s facilities and encompasses an interactive forum, providing Qatar Airways’ National leaders with instructions to resolving issues and ways to tackle tough challenges. All leaders were also given the opportunity to take part in innovative aviation courses administered by International Air Transport Association (IATA) to progress their knowledge and skills. The courses inspire the participants to step out of their comfort zones and delve deep into aviation industry knowledge.
    A multiple award-winning airline, Qatar Airways was announced as the ‘Airline of the Year’ at the 2021 World Airline Awards, managed by the international air transport rating organisation, Skytrax. It was also named ‘World’s Best Business Class’, ‘World’s Best Business Class Airline Lounge’, ‘World’s Best Business Class Airline Seat’, ‘World’s Best Business Class Onboard Catering’ and ‘Best Airline in the Middle East’. The airline continues to stand alone at the top of the industry having won the main prize for an unprecedented sixth time (2011, 2012, 2015, 2017, 2019 and 2021).
    Qatar Airways also became the first global airline in the world to achieve the prestigious 5-Star COVID-19 Airline Safety Rating by Skytrax. This follows the success of Hamad International Airport as the first airport in the Middle East and Asia to be awarded a Skytrax 5-Star COVID-19 Airport Safety Rating. These awards provide assurance to passengers across the world that the airline’s health and safety measures are subject to the highest possible standards of professional, independent scrutiny and assessment.
    Qatar Airways currently flies to more than 150 destinations worldwide, connecting through its Doha hub, Hamad International Airport, currently named the ‘Best Airport in the World” by Skytrax World Airport Awards 2021.

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    British Airways companion vouchers opened up to solo travelers

    Travellers embarking on solo adventures around the world can now enjoy new benefits from their Companion Voucher, British Airways and American Express have announced.
    From today, Cardmembers who have earned a Companion Voucher since September 2021 on either the British Airways American Express® Credit Card or the British Airways American Express® Premium Plus Card can choose to redeem it when booking a solo trip, receiving a 50% discount on the Avios cost of the booking.
    This is an additional option for travellers offering added flexibility. Cardmembers can still choose to use the Companion Voucher to travel with a friend as they would have previously – receiving a second seat for a companion travelling on the same Reward Flight booking as them for no additional Avios.
    Companion Vouchers are awarded to travellers who hold either British Airways American Express Card and reach the required spend amount within their Cardmembership year. They can be redeemed on available British Airways Reward Flights, which don’t need to start in the UK, allowing Cardmembers to book either one journey for 50% of the Avios required, or take a second traveller on their journey – on the same flights and in the same cabins – for no additional Avios, plus paying taxes, fees and charges per person.
    In addition to this change, from today those booking British Airways Reward Flights using a Companion Voucher (either as a solo traveller or with a companion) will now have more control over their Avios spend. They will be able to choose from a variety of options regarding how many Avios to spend versus cash on each booking. This was previously fixed to just one Avios and cash option based on the route and cabin.ADVERTISEMENTBritish Airways American Express Credit Card Companion Vouchers can be redeemed in economy cabins, while British Airways American Express Premium Plus Card Companion Vouchers can be redeemed across all cabins. Extra availability in Club World (long-haul business class), exclusive to those using the Companion Voucher, was added last year to make redemptions even easier. This extra availability is for those using a Companion Voucher earned since September 2021 either as a solo traveller or travelling with a friend.
    Ian Romanis, Head of Retail and Customer Relationship Management at British Airways, said: “Solo travel is a popular option for our customers, which is reflected in the number of solo bookings we have seen. We’ve listened to our customers and we’ve introduced these exciting changes, understanding that flexibility is more important than ever to them.”
    Caroline Bouvet, Vice President at American Express, said: “Companion Vouchers are an incredibly valuable benefit for Cardmembers, so it’s exciting that we’ve been able to make it even easier for them to be used on flights. As people return to travel – looking to go away by themselves or with a friend – the British Airways American Express Cards are a great way to turn everyday spending in to travel rewards, and the only way to earn the much-valued Companion Voucher.”
    British Airways is considered the Europe’s Leading Airline 2021 by World Travel Awards.

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    Eve and Falcon Aviation Services announce partnership

    In April 2022, a subsidiary of Eve Holding, Inc. (“Eve” or the “Company”) and Falcon Aviation Services (“Falcon”), a leading Business Aviation Services operator in the Middle East and Africa region, signed a Letter of Intent (LoI) for up to 35 electric vertical take-off and landing (“eVTOL”) aircraft. With deliveries expected to start in 2026, the partnership will introduce the first eVTOL touristic flights from the Atlantis, The Palm in Dubai. Eve and Falcon will work together with the local stakeholders and authorities to support developing the Urban Air Mobility (“UAM”) ecosystem for the United Arab Emirates (“UAE”).
    Captain Ramandeep Oberoi, Chief Operating Officer of Falcon, said: “We are ecstatic to partner with Eve and be the first operator of eVTOL in Dubai & the MENA region. The launch of this concept fully aligns with the Smart Dubai vision and will contribute to positioning Dubai as a global leader in sustainable Urban Air Mobility transportation. Falcon is actively engaged in Urban Air Mobility emergence and committed to delivering an effective and sustainable new urban transportation mode and providing the community with better and faster solutions. We are particularly proud to take a new step in the UAE, in a project that will be revolutionary for sustainable urban mobility.”
    “We are thrilled about partnering with Falcon and having the immense opportunity to enable the future urban mobility in the United Arab Emirates and launch eVTOL flights in Dubai. This is a massive challenge for both companies, which will help to position Dubai as a leader in the urban air mobility market. Eve’s global experience, which spans different regions across the globe, will surely benefit the achievement of this project,” said Andre Stein, co-CEO of Eve.
    This collaboration reinforces Eve’s commitment and efforts to safely enable the global UAM ecosystem by providing an agnostic and holistic portfolio of solutions.

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    IATA: Ground handling makes progress towards standardisation

    The International Air Transport Association (IATA) reported that the IATA Ground Operations Manual (IGOM) Portal and IATA’s Safety Audit for Ground Operations (ISAGO) are successfully driving greater standardisation of ground handling processes around the world. This is particularly important for the rapid build-up of operations as COVID-19 restrictions are lifted.
    “IGOM and ISAGO complement each other in driving much-needed harmonisation across the ground handling sector. And the boost in participation in both programs as the industry ramps up its operations is good news for both safety and efficiency. The aim of both is to reduce risk, avoid ground damage and enable standardised, sustainable operations,” said Monika Mejstrikova, IATA’s Director of Ground Operations.
    IGOM Portal
    Since the IGOM Portal’s launch in January, 58 airlines and 11 ground service providers (GSPs) have subscribed to its services.
    The portal enables airlines and ground handlers to interface with the IATA Ground Operations Manual. IGOM is the global industry standard for ground handling worldwide. The portal is an online platform where, with IGOM as the primary reference, airlines and GSPs can exchange information, including any variations, on their ground handling requirements.ADVERTISEMENT“The goal is global adoption of ground handling standards. The efficiency and safety gains from global standardisation have been proven throughout aviation’s development. The IGOM portal is helping achieve this by making it easier for airlines and GSPs to manage and monitor the implementation of standards and to understand variances. With 69 organisations already using the portal the drive for greater standardisation is getting a boost,” said Mejstrikova.
    The IGOM Portal is available free of charge to all airlines and GSPs. To subscribe, access the IGOM Portal.
    ISAGOSince March 2022, 28 airlines have joined ISAGO, thereby benefiting from 500 audit reports available to complement their oversight activities.
    ISAGO provides an independent assessment of all aspects of managing and providing safe ground handling services, based on the IGOM standards.
    “The increase in ISAGO participation reflects the benefits of verified compliance with global standards. With more governments now including ISAGO in their safety oversight programs, we can expect even more airlines and GSPs to join. In addition to safety improvements, ISAGO participation helps airlines to allocate resources efficiently,” says Mejstrikova.
    Given the benefits of standardisation to safety performance, IATA urges governments to recognise ISAGO in their regulatory frameworks for safety oversight. Key among the many positive outcomes is the assurance that Safety Management Systems (SMS) are being implemented by GSPs.

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