Menzies Aviation’s Post

Cathay Pacific launches direct flights to Hyderabad in network expansion: Cathay Pacific will resume direct flights between Hong Kong and Hyderabad from March 30, 2025, boosting its Indian network to 43 weekly flights across five cities. The service will initially operate three times weekly before increasing to five flights per week from September 1, 2025. Cathay Chief Customer and Commercial Officer Lavinia Lau said the https://bit.ly/4fDnKEH

Avia Solutions Group to Launch Global Services Centre in Manila - Avia Solutions Group (Ireland) has announced the launch of its first Global Services Centre in Manila, marking a significant milestone in its global expansion strategy. The new centre is scheduled to begin operations in January 2025, bringing a wide range of aviation-related services to the Southeast Asian market. - https://lnkd.in/d-K-HiRA

Avia Solutions Group to Launch Global Services Centre in Manila - Avia Solutions Group (Ireland) has announced the launch of its first Global Services Centre in Manila, marking a significant milestone in its global expansion strategy. The new centre is scheduled to begin operations in January 2025, bringing a wide range of aviation-related services to the Southeast Asian market. - https://lnkd.in/d-K-HiRA

A quick comparison of the top five mega hubs in 2023 based on their connectivity index, and carriers dominating those hubs with higher frequency shares.   1. LHR (London Heathrow Airport):   - Ranking (2023): 1   - Ranking (2019): 1   - Dominant Carrier: British Airways (BA)   - Frequency Share (2023): 50%   - Frequency Share (2019): 51%   - Explanation: London Heathrow Airport maintains its position as the top mega hub in 2023. British Airways continues to be the dominant carrier at LHR, although there has been a slight decrease in its frequency share compared to 2019.   2. JFK (John F. Kennedy International Airport):   - Ranking (2023): 2   - Ranking (2019): 18   - Dominant Carrier: Delta Air Lines (DL)   - Frequency Share (2023): 34%   - Frequency Share (2019): 37%   - Explanation: JFK has significantly improved its ranking, moving up to the second position in 2023 from 18th in 2019. Delta Air Lines is the leading carrier at JFK, with a slightly decreased frequency share compared to 2019.   3. AMS (Amsterdam Airport Schiphol):   - Ranking (2023): 3   - Ranking (2019): 4   - Dominant Carrier: KLM Royal Dutch Airlines (KL)   - Frequency Share (2023): 53%   - Frequency Share (2019): 52%   - Explanation: Amsterdam Airport Schiphol maintains its position as the third-ranked mega hub in 2023. KLM Royal Dutch Airlines remains the dominant carrier at AMS, with a slightly increased frequency share compared to 2019.   4. KUL (Kuala Lumpur International Airport):   - Ranking (2023): 4   - Ranking (2019): 12   - Dominant Carrier: AirAsia (AK)   - Frequency Share (2023): 34%   - Frequency Share (2019): 41%   - Explanation: Kuala Lumpur International Airport has made significant progress, moving up to the fourth position in 2023 from 12th in 2019. AirAsia continues to be the dominant carrier at KUL, although there has been a decrease in its frequency share compared to 2019.   5. HND (Tokyo Haneda Airport):   - Ranking (2023): 5   - Ranking (2019): 22   - Dominant Carrier: All Nippon Airways (NH)   - Frequency Share (2023): 36%   - Frequency Share (2019): 37%   - Explanation: Tokyo Haneda Airport has shown remarkable improvement, rising to the fifth position in 2023 from 22nd in 2019. All Nippon Airways remains the dominant carrier at HND, with a slight decrease in its frequency share compared to 2019. #Airport #Airline #Partnership #AviationIndustry #Collaboration #AviationOasis Data Source: OAG

MSC Air Cargo has officially launched operations under its new identity, after rebranding from AlisCargo Airlines. Here’s what makes this development exciting: Global Reach: With Mediterranean Shipping Company’s acquisition and rebranding, MSC Air Cargo is set to expand its footprint across the skies, starting with regular flights from #Milan to #HongKong! Strategic Partnership: MSC Air Cargo has teamed up with Hactl (Hong Kong Air Cargo Terminals Ltd) for top-notch ground handling services. This collaboration brings together expertise from two industry giants! Enhanced Capacity: The new MSC Air Cargo, equipped with B777 freighters, promises more capacity for the Asia market, a move that will surely boost regional trade and #connectivity. Operational Synergy: With Hactl’s extensive facilities, MSC Air Cargo is all set to provide comprehensive service to its customers. This synergy will support the company’s ambitious growth plans. Positive Outlook: Jannie Davel, MSC Air Cargo’s SVP, is enthusiastic about this expanded Hong Kong operation. It’s all about quality service and mutual growth with partners like Hactl. MSC Air Cargo is clearly on a path to strengthening its presence in the global air cargo industry. Their renewed focus on service quality and capacity expansion is a win-win for customers and partners alike! Adds Hactl Executive Director – Commercial and Business Development, Joanna Li: “We are delighted to welcome back an old friend under its new name, and with its greatly increased capacity. We wish the new MSC Air venture every success, and look forward to playing a key role in its successful development in the Asia market.” https://lnkd.in/g6jeUA76 What do you think this means for the future of air cargo in the #Asia market? #AirCargo #MSC #Logistics #SupplyChain #AsiaMarket #AviationInnovation #dubai #Uae

“2023 is indeed a very special year. It marks the first year after the pandemic where there was a rapid increase in demand while our passenger flights were gradually being reinstated. This led to a supply-demand mismatch and resulted in notably higher revenues than usual, ultimately driving our profitability. The scenario is expected to normalize over the course of this year.” Ronald S.P. Lam, CEO of Cathay Pacific Group, said during the exclusive interview with us. The carrier reported revenue of HK$94.485 billion last year, a substantial 85.1% year-on-year increase. This marks a significant return to profitability for the first time since 2019. Cathay Pacific has outlined its strategy to gradually resume passenger flight services to 80% of pre-pandemic capacity by the second quarter of this year, with the ultimate goal to reach 100% by the first quarter of 2025. “Our hiring is progressing well. Last year, the group saw a net increase of around 3,000 employees. And we anticipate another increase of 5,000 this year. By the end of this year, the total number of Cathay Group’s employees is expected to reach about 29,000.” Lam added.

While the overall Southeast Asia-China market has recovered rapidly, the Philippines-China market has been an exception with a further decline in capacity this month. This is hardly surprising given the geopolitical situation which has impacted both inbound and outbound demand. AirAsia Philippines has suspended services to China entirely while Cebu Pacific, Philippine Airlines and Chinese carriers have slashed capacity. Total Philippines-China seat capacity is only 42% recovered this month (Sep-2024 vs Sep-2019), based on OAG data. AirAsia’s last Philippines-China flight operated at the end of last month, when Manila-Shenzhen was suspended. Manila-Shanghai and Manila-Guangzhou were suspended in May. As I told South China Morning Post SCMP yesterday: “AirAsia as a group continues to add flights to China and has been one of the strongest foreign airline groups in China in terms of their post-pandemic recovery and size of operation. But it makes no sense for AirAsia to serve China from the Philippines at this point, given the current China-Philippines environment.” AirAsia total capacity to China was 71% recovered to China last month while Southeast Asian airlines overall were 57% recovered and foreign airlines globally were 59% recovered (based on OAG data for Aug-2024 vs Aug-2019). The AirAsia figure includes long-haul affiliate AirAsia X. AirAsia is now the largest foreign airline group in China despite AirAsia Philippines (Z2) pulling out of China and a relatively slow recovery for AirAsia X Malaysia (D7) and AirAsia Thailand (FD). AirAsia Malaysia (AK) has offset some of the declines from sister carriers with its China capacity 19% higher than 2019 levels last month. Z2 had 8 Philippines-China routes in 2019 but 5 were never resumed (Kalibo to Chengdu, Hangzhou, Kunming and Shanghai and Cebu to Shenzhen). Z2 had an average of 30 weekly flights to China in 2019 but it had only 10 earlier this year as all 3 resumed routes had fewer frequencies. Manila-Shenzhen was at 3 frequencies for most of this year and was down to only 2 last month due to very weak demand. Z2 has not reopened its Kalibo base, which relied heavily on China traffic, and its Cebu base was closed earlier this year. The entire Z2 fleet is now based in Manila, where slots are most valuable. Overall Z2’s capacity is only 76% recovered, making it critical to focus on markets with strong demand. Cebu Pacific Group’s seat capacity is now fully recovered but it also clearly has better markets than China to place capacity. Cebu Pacific Air recently scrapped plans to resume Manila-Beijing (AirAsia also has scrapped plans to launch this route) and is suspending Manila-Xiamen next month. Cebu Pacific will continue to serve Guangzhou and Shanghai but will be down to only 6 weekly flights to China on 2 routes compared to up to 34 flights on 7 routes pre-COVID. Philippine Airlines had an average of 36 weekly flights to China in 2019 on 6 routes and now has 21 flights on 4 routes.

Congratulations to the Association of Asia Pacific Airlines for securing PT Lion Air as its first low-cost carrier member since AAPA was established in 1966. Lion Air also becomes AAPA’s largest member outside Japan – and its third largest member overall – based on current seat capacity. Here is a ranking of AAPA’s 16 members, including newly-approved Lion, based on scheduled seat capacity for next month (December 2024 data from OAG). All Nippon Airways: 5.4 million Japan Airlines: 4.0 million PT Lion Air: 3.0 million Air India Limited: 2.9 million Cathay Pacific: 2.8 million Singapore Airlines: 2.8 million Vietnam Airlines: 2.2 million Thai Airways International: 1.8 million Philippine Airlines: 1.8 million EVA Airways Corp.: 1.5 million Garuda Indonesia: 1.4 million Malaysia Airlines: 1.3 million China Airlines: 1.2 million Air Astana: 0.5 million Bangkok Airways: 0.5 million Royal Brunei Airlines: 0.1 million (Note: Lion Air is still slightly larger than Air India following the Vistara merger) Before today, Vietnam Airlines and Air India were the latest new members, joining in Nov-2023 and Nov-2022, respectively. Prior to that, Air Astana and Bangkok Airways had been the most recent new members, joining a decade ago. Bangkok Airways will host next year’s AAPA 69th Assembly of Presidents for the first time. Royal Brunei, AAPA's smallest member, hosted today's AAPA 68th Assembly of Presidents. Lion Air (JT) is the largest member of the Lion Group, which also includes Batik Air Indonesia (ID), Batik Air Malaysia (OD), Thai Lion Air (SL) and Indonesia-based regional operator Wings Air (IW). Indonesia’s Super Air Jet (IU) is technically not part of Lion Group but is also owned by the Kirana family and utilizes Lion Group resources. JT, SL, IU and IW follow LCC models while ID and OD follow hybrid/full-service models. For now only JT joins AAPA, according to Lion Group. This is not only a major breakthrough for AAPA, as it has courted potential LCC members for over a decade, but also for Lion and Lion Group CEO Rusdi Kirana. Pak Rusdi is very low profile and has traditionally been reluctant to join regional or international associations. However, ID, OD and SL all joined the International Air Transport Association (IATA) within the last decade. JT is not currently a member of IATA but is active along with its Indonesian sister carriers in the Indonesian National Air Carriers Association (INACA).

“Etihad Airways PJSC, the national carrier of the United Arab Emirates, is to create a joint venture with China Eastern Airlines Corp. Ltd. to develop routes between the UAE and Asia’s largest economy. The venture will allow the airlines to expand travel options for passengers between Chinese cities such as Shanghai and Beijing, and across the Middle East and Africa, according to a statement on Wednesday. It is expected to launch in early 2025 once both carriers receive regulatory approval. The two airlines came to an agreement after first exploring the idea last year at an aviation gathering in Istanbul, Antonoaldo Neves, Etihad’s Chief Executive Officer, said in an interview.” “The accord is the first of its kind between carriers from the two regions. The pact will allow the carriers to coordinate schedule and network development, Neves said. Etihad had previously pursued an ill-fated strategy of trying to funnel more traffic through its Abu Dhabi hub by buying stakes in smaller carriers. That plan fell apart after losses piled up, and Neves said he had not repeated that approach. Etihad and Shanghai-based China Eastern already have an agreement to recognize each other’s frequent flier programs which will come into effect at the end of the year. The accord underscores China’s wider push to open up to more friendly nations and cooperate in areas of finance and investment.” “The Middle East was among the first destinations for Chinese carriers when they resumed international traffic after Covid. Regional rival Qatar Airways Group QCSC and China Southern Airlines Co. Ltd. have a close commercial relationship, with the Doha-based carrier holding a 5% stake in China’s largest airline. Upstart Riyadh Air, owned by Saudi Arabia’s sovereign wealth fund, also signed a preliminary agreement on interline traffic and code shares with Air China this week. ‘We look forward to our collaboration creating more synergies, not only in facilitating passenger travel but also in building deeper economic, trade, and cultural exchanges between China and the UAE,’ Wang Zhiqing, chairman of China Eastern, said in the statement.”