Airline, Organisations & Operators,

The President of Emirates Airline and the CEO of Heathrow Airport held a constructive meeting this morning. Emirates agreed the airline was ready and willing to work with the airport to remediate the situation over the next 2 weeks, to keep demand and capacity in balance and provide passengers with a smooth and reliable journey through Heathrow this summer.
Emirates has capped further sales on its flights out of Heathrow until mid-August to assist Heathrow in its resource ramp up, and is working to adjust capacity.
In the meantime, Emirates flights from Heathrow operate as scheduled and ticketed passengers may travel as booked.

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Airlines are overlooking half a billion pounds in untapped ancillary revenue from travellers desperate for assurance they’ll actually board their flight, according to new research by tech company Zamna.
The independent market research, which polled over 2,000 UK consumers, found that three in four (76 per cent) are willing to pay their airline an additional fee on top of their ticket price for a complete travel documentation check against destination regulations, before arriving at the airport.
So concerned about arriving at the airport with the correct travel documentation – such as a passport check against border rules, destination entry forms, VISA, proof of vaccination and health certificates – survey respondents were, on average, willing to pay £5.32 for preflight peace of mind.  This equates to at least £510 million of secondary revenue ready and waiting for airlines savvy enough to adopt a solution amidst extreme levels of disruption still hitting airports and travellers across the world.
What’s more, while £5.32 was the average amount flyers were happy to pay for a pre-flight travel documentation check, 35 per cent of consumers were in fact willing to pay up to £10 for the assurance of such a service.
Aside from making a cash injection and a much-needed boost to the financial recovery of airlines, the survey also highlighted that 64 per cent of respondents believed airlines should be doing more to help them ensure their flight-related paperwork is in order before leaving home for the airport, while only 16 per cent believed the responsibility lies with the passengers alone.ADVERTISEMENTWorries about the correct documentation topped the list of traveller concerns, rating higher than staff shortages, reports of airport chaos in the media, and fears that the airline could go bust, while significantly more people wanted airlines to provide a document check over a full refund if they can’t board their flight.
“With the industry struggling to sustain losses of £9.54 billion now is the perfect time to highlight as much as half a billion pounds in potential revenue to airlines – and that’s just in the UK alone,” comments Irra Ariella Khi, CEO of Zamna.  “Aside from the financial gains, a huge portion of the pain felt by airlines and travellers alike can also be eased with simple, available tech improvements that digitise document handling in advance. However, much of the new tech being introduced by airlines and airline groups is just not working; the need for more equipment and behavioural changes generated by the solutions causes pain for all, whether that’s downloading a new app, having to print a document or present a QR code. The passport is the only globally recognised identity document and we have been travelling on it for decades; it should be, and is, the only thing one needs to travel with total confidence if the tech is right.”
For airlines to access additional new revenue of this scale, warns Khi, any improvements implemented must also be ubiquitous to all travel-related tech platforms such as global distribution systems (GDS), passenger service systems (PSS), and customer relationship management (CRM) rather than proprietary. “It’s so important that new technology solutions in this field are industry-wide, affect all airlines positively, and are inclusive of passengers – avoiding costly and limiting vendor locks, and instead serving a global price-sensitive, Covid-exhausted audience. It must also allow airlines to be prepared for whatever is thrown at them with evolving markets, ever-updating regulations, and changing customer requirements,” she explains.
In addition to yielding greater profit margins through the implementation of ubiquitous tech-powered solutions, the right technology creates the chance for airlines to improve operational efficiencies, not to mention the prospect of reducing the risk of heavy regulatory fines resulting from providing incorrect passenger data to governments. Coupled with fine avoidance, technologies now exist to alleviate some of the airline staff resourcing issues that have caused airport congestion. Slow and labour intensive check-in processes can be accelerated or completely by-passed by removing many of the manual checking procedures required at the airport itself. This means that long and slow-moving queues of UK travellers and the increased need for airline staff that we have all seen of late, would be a thing of the past with the adoption of the available solutions.
“We’re entering a new era of travel and airlines need to get on board,” adds Khi. “Tech that supports the bottom line, while assuring passengers and reducing pressure on airline staff is the key to airlines securing recovery.”

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The International Air Transport Association (IATA) expressed concern that a premature return to pre-pandemic slot use rules in the EU this winter risks continuing disruption to passengers.
The European Commission has announced it intends to return to the longstanding 80-20 slot use rule, which requires airlines to operate at least 80% of every planned slot sequence. Global slot rules are an effective system for managing access to and the use of scarce capacity at airports. The system has stood the test of time and while airlines are keen to restart services, the failure of several key airports to accommodate demand, coupled with increasing air traffic control delays, means a premature return to the 80-20 rule could lead to further passenger disruption.
The evidence so far this summer has not been encouraging. Airports had the 2022 summer season schedules and final slot holdings in January and didn’t evaluate how to manage this in time. Airports declaring that full capacity is available and then requiring airlines to make cuts this summer shows the system is not ready for reviving “normal” slot use this winter season (which begins at end of October).
“The chaos we have seen at certain airports this summer has occurred with a slot use threshold of 64%. We are worried that airports will not be ready in time to service an 80% threshold by the end of October. It is essential the Member States and Parliament adjust the Commission’s proposal to a realistic level and permit flexibility to the slot use rules. Airports are equal partners in the slot process, let them demonstrate their ability to declare and manage their capacity accurately and competently and then restore the slot use next summer,” said Willie Walsh, IATA’s Director General.

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marhaba, part of dnata and one of the world‘s fastest growing passenger services providers, is launching new summer experiences across its global network of airport lounges.
At its lounges at DXB’s Terminal 1, Terminal 2 and Terminal 3, marhaba has partnered with Al Jalila Children’s Specialty Hospital to offer an exclusive range of travel products with summer designs created by children aged between 5 and 11, with all profits going to the hospital. The special products include notebooks, bookmarks, and postcards.
Steve Allen, CEO of dnata Group, commented: “marhaba’s airport services are soaring in popularity this summer as travellers seek a smooth journey to and from their destination of choice. As the brand continues to expand from Dubai, we’ve recently launched meet & greet services at five Australian airports and opened a new lounge in Zurich, Switzerland, in time for the peak travel season.
“At dnata we are proud to support local community partners and our work with Al Jalila Hospital offers travellers the opportunity to purchase something unique this summer, in support of an important cause.”
Dr Mohamed Al Awadhi, Chief Operating Officer, Al Jalila Children’s Specialty Hospital, added: “Al Jalila Children’s is an inspiring, child-friendly world. We strive to create a stress-free environment where our young patients can participate in a range of activities regardless of their condition. We would like to thank dnata for providing our young patients a platform to express their artistic abilities and create an exclusive merchandise for marhaba which will be seen by people from all over the world.” ADVERTISEMENTPassengers accessing marhaba lounges in Singapore, Manila, Melbourne, Karachi, Geneva and Zürich can also expect a host of additional summer products, all locally-tailored, including new menu items, and unmissable giveaways, throughout a highly-anticipated season for international travel.
In July marhaba will also launch a summer competition. Its global lounge customers will be provided with materials to design a postcard based on their ‘dream’ summer holiday destination. Completed designs will be displayed within local lounges as travel inspiration, and will also admit a passenger one entry to a travel-themed prize draw, including holidays in Dubai and Switzerland inclusive of five-star hotel stays, flights, and marhaba services.

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Gatwick Airport has announced two new retail offers for passengers, with LEGO stores and a Kidstop pop-up opening ahead of the school summer holidays.
World famous construction toy brand, LEGO, opened a store in each of Gatwick’s North and South Terminals this week – among its first standalone stores in a UK airport. The new outlet, operated by Lagardère Travel Retail UK, offers departing passengers popular products ranging from iconic lines such as the London Bus to LEGO channel exclusives, including LEGO Republic Gunship and LEGO Hogwarts Castle.
Key LEGO themes including Duplo, City and Architecture are also available, alongside internationally recognised licenses such as Harry Potter, Marvel and Star Wars.
Meanwhile Kidstop – a Gatwick-specific pop-up store operated by WHSmith, offering children’s books, travel games and toys – opened in the North Terminal on 4 July.
Pam McCarthy, director of retail, Gatwick Airport said: “Having a worldwide brand such as LEGO opening stores at Gatwick is fantastic news for the airport and our passengers. It shows the high demand of retail space at Gatwick and we are sure passengers will love being able to purchase LEGO’s exciting products, whether to keep the kids entertained during the flight, as gifts when visiting family and friends, or as a souvenir of a UK holiday. ADVERTISEMENT“Kidstop is another great addition to the North Terminal, offering passengers a range of fantastic products to keep children busy – perfect for last-minute purchases as we head into the school summer holidays.”
Marion Engelhard, managing director, Lagardère Travel Retail UK said: “We are thrilled to open LEGO stores in both terminals, thanks to a great partnership with both Lego and Gatwick Airport. Stores will feature fan favourites alongside some new and exciting exclusives, providing a great, entertaining start to the day for passengers!”
Annette Rosendahl, head of travel retail development, LEGO said: “We are very excited to see the first LEGO® Airport stores opening in July in the UK and at the same time being able to finally introduce our new store design platform to the Travel Retail channel as well. This is a fantastic opportunity to inspire and engage passengers in Gatwick North and South Terminals, and adding an offer for all ages, all genders and all passion points in the LEGO Stores will be a great and fun start of the journey in Gatwick Airport.”
The stores are the first new offering at Gatwick since InMotion opened in both the North and South Terminals at the turn of the year.
Meanwhile Ted Baker, located in Gatwick’s South Terminal, reopened on 8 July for the first time since the Covid-19 pandemic, meaning the high-end clothing retailer will now have a presence in both terminals. The airport’s South Terminal Itsu store will also reopen later this month, offering passengers sushi, salads and more.

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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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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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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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