The International Air Transport Association (IATA) has urged policy-makers to use aviation as a strategic asset, advocating the “wide-ranging” benefits of a good relationship between the industry and government.

Tony Tyler, IATA’s Director General and CEO said: “When the relationship between industry and government works, the results are brilliant. Policies that support aviation’s competitiveness deliver wide-ranging benefits across economies by connecting business to markets.”

The IATA say that aviation is a key economic contributor. According to Oxford Economics studies commissioned by IATA, the aviation industry contributes 119,000 quality jobs and 5.4% of GDP in Singapore.

“The connectivity that aviation provides to Singapore has enabled it to develop as a successful regional hub for sectors as diverse as finance, healthcare, culture and education,” said Tyler in a keynote address to the Singapore Airshow Aviation Leadership Summit.

Tyler indicated India as one market that is missing out on aviation’s potential as a result of a policy framework that does not support aviation’s competitiveness, yet outlined Asia as an area driving growth.

IATA say that aviation’s centre of gravity is shifting eastward as a result of this growth. In 2010, around 33% of passengers travelled on Asia-Pacific routes, whilst around 31% of passengers travelled on North America and Europe routes.

By 2015, IATA’s passenger forecast anticipates that Asia-Pacific will represent 37%, whilst traffic associated with Europe and North America will fall to 29%.

In the same period, an additional 877 million passengers are expected to be generated – 212 million of which are expected to fly on routes associated with China.

Tyler pointed out that one challenge the growth of aviation presents is security. He said: . “Security is a top priority that must not be compromised. But everybody hopes for an early evolution from an airport checkpoint experience defined by queuing, unpacking, removing clothing, separating certain items and possibly invasive searches.

“The system works, but it is struggling to cope with today’s volumes. Growth will only make the challenge bigger. One of my priorities is to build global consensus that will see the Checkpoint of the Future improve the quality and convenience of airport security.”

The Checkpoint of the Future envisages using passenger data collected for immigration authorities to differentiate airport screening. Secondly, it incorporates technology expected to be available in a seven to 10 year time frame to enable passengers to walk through checkpoints without stopping or unpacking.

Tyler also called for cooperative policies to help reduce the price of sustainable biofuels to allow them to move into general usage and help the aviation industry rach its climate change targets.

Tyler said: “Positive economic measures such as emissions trading are a necessary, if temporary, bridge to reach aviation’s climate change targets. To be effective and avoid market distortions, these measures must be globally coordinated. Europe deserves credit for pushing this issue up the international agenda and it is at the forefront on emissions trading. But its unilateral approach must change.”

Photo: James Cridland

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Etihad Airways have operated the first sustainable biofuel powered delivery flight in the Gulf.

The 14-hour flight from Seattle to Abu Dhabi was the delivery flight of Etihad’s newest Boeing 777-300ER and arrived yesterday (24 January 2012).

James Hogan, Etihad Airways’ President and Chief Executive Officer, said: “This flight marks a significant milestone in our efforts to  support and drive the commercialisation of sustainable aviation fuel in Abu Dhabi, the region, and globally.”

The delivery flight of the airline’s newest and most efficient long haul aircraft was operated using a combination of traditional jet fuel and plant-based jet fuel, which is fully certified for use as commercial jet fuel.

James Hogan continued: “The use of a presently available biofuel is just one part of a more comprehensive long-term biofuel strategy to ensure that we are able to use biofuels to decarbonise substantially an entire industry sector in the long term.”

SkyNRG, an Amsterdam-based sustainable jet fuel provider, supplied the fuel, which is based on recycled vegetable cooking oil. As a plant-based source that has been used already for cooking purposes, it qualifies as a bio-based waste stream with a high sustainability value.

Dirk Kronemeijer, SkyNRG’s Managing Director, said: “We think the Middle East has great potential to give a critical boost towards making a market for sustainable jet fuel that is affordable.  With this flight Etihad Airways has taken a fantastic step, particularly in increasing awareness within the region. There is a lot more to come in this continent and we are determined to be there when that happens.”

Boeing also supported this initiative by supplying their ‘fly-away’ fuel, provided for every new delivery, as a biofuel blend.

Etihad Airways, as a member of the global Sustainable Aviation Fuel Users Group, has committed to a stringent set of sustainability principles when looking at opportunities for biofuel development and use. This includes ensuring that feedstock is non-competitive with food sources and does not jeopardise drinking water supplies.

With new regulations now being imposed on aviation carbon emissions, the commercial viability of biofuel is gaining even more importance. Starting this year, the EU emissions trading scheme (ETS) will require all airlines to pay for emissions and this is likely to lead to other such schemes around the world. Biofuel is considered  ‘carbon neutral’ as the plant biomass takes in carbon as it grows and releases it again during the combustion process, and this means that the use of biofuel as part of the EU ETS would be considered exempt.

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In order to prepare you as best we can for the year ahead we’re taking a look at some of the emerging trends we believe will be big this year in aviation and the impact they will have on hiring.

Last year was a somewhat turbulent year for the aviation industry, and as you would expect, there were both positive and negative trends evident for those in the sector.

At the end of December 2011, The International Air Transport Association (IATA) reported that global traffic results for both passenger and cargo markets were softening.

Tony Tyler, IATA’s Director General and CEO, said of the 2011 figures: “Weak global economic performance is being reflected in air transport markets. Freight markets have contracted some 4% compared to January. Although passenger markets have had some growth relative to the beginning of the year – about 2% – the trend has been both soft and volatile. Continuing economic uncertainty will likely mean market shortcomings deepening as we enter 2012.”

However, it wasn’t all bad news at the end of 2011. The world’s principal provider of data, analytics and advisory services to investors in aerospace, Ascend, announced that 2011 was the safest year on record, with fatal accidents and passenger fatality rates at their lowest.

There was a marked regional difference to passenger numbers across the globe. While carriers in North America saw a decline in traffic, the aviation industry in the Middle East and Latin America experienced increases of 10.1% and 9.0% respectively, according to the December 2011 IATA figures.

The success of Middle Eastern and Latin American aviation is a trend that is likely to continue into 2012, thanks to robust trade activity (Latin America), and gains in market share on long-haul markets through price competitive products (Middle East).

Despite the aviation industry suffering because of economic uncertainty, IATA believe that the aviation industry itself can be a catalyst for growth.

Tyler said: “The story of aviation’s importance is even more compelling as governments around the world seek solutions to economic uncertainty. Economic growth is the only durable solution. Aviation can be a catalyst for that growth. But that depends on governments allowing airlines to get on with the business of providing global connectivity. The New Year’s resolution for every government with respect to aviation should be to stop over-taxation of mis-regulation of this vital economic driver.”

Reducing carbon emissions
One of the key influential factors on the aviation industry in 2012 is the environmental impact the industry has – and how to control this. The CAA states that aviation will only be able to fully realise its economic potential through tackling its environmental impact. In January 2012, the CAA set out four goals for its work, including to contribute to a cleaner and quieter aviation industry and to improve airspace design through new operational measures.

The development of lightweight, composite components is becoming increasingly important as the aerospace industry strives to reduce fuel consumption and emissions, and it is likely that people with skills and experience in this area will be in demand in 2012.

This is exemplified by the January 2012 opening of a new aero-engine facility on the Isle of Wight. The £14.8m facility, a joint venture between Rolls-Royce and GKN Aerospace, will employ 70 skilled engineers and has been supported with £7.4m in funding from the UK government.

Business Minister Mark Prisk, who opened the facility, said: “It is ventures like this that are helping to place Britain as a world leader in the growth area of low carbon solutions, while affirming our commitment to providing the technological needs of the future.”

London 2012 Olympics
The London 2012 Olympic Games will have a profound impact on the aviation industry in 2012, particularly in the UK. Upwards of half a million international visitors are expected for the 2012 Olympic Games, the majority of which will be travelling by air.

Many will travel on scheduled flights but some 700 extra charter flights and some 10,000 business jet movements are expected during the Olympics period.

This will mean that those working in London airports and in parts of the aviation industry connected with London airspace, as well as pilots, cabin crew and security staff, will have to adjust their procedures to cope with the extra demand to ensure safety and avoid congestion and delays.

The Department for Transport (DfT) is working with the Civil Aviation Authority (CAA), the en-route air navigation services provider (NATS), the Ministry of Defence (MOD), the Borders Agency (UKBA) and aviation industry stakeholders to meet the challenge posed by the London 2012 Olympics.

London Olympics Pilot Briefing Event
In particular, pilots looking for help to prepare for flying in the south east of England during the 2012 Olympics may wish to attend a free briefing day in London on Saturday 10 March 2012. The event, hosted by the Royal Institute of Navigation (RIN) and the CAA, will offer information how pilots will be affected by the Olympics and how to deal with the changes. For more information, visit the Airspace and Safety Initiative website.

Photo: xlibber

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India’s government is set to stand by ailing airlines amid fears that financial problems may affect their safety.

Ajit Singh, the Civil Aviation Minister has said that the government could be set to recommend measures to ensure safety, the Economic Times newspaper reported.

According to the BBC, on Thursday, the aviation regulator met Kingfisher Airlines and Air India Express after an internal report had raised safety concerns which were deemed to be finance-related.

Experts have said the report suggested that the ailing airlines may be cutting corners which may impact passenger safety, however both Kingfisher Airlines and Air India Express defended their safety standards.

Kingfisher said it was operating with “utmost safety”. An Air India Express spokesman also defended the carrier’s safety standards.

Five of India’s six main airlines have been reporting losses for the past few years. They have been particularly badly hit by fuel price rises.

Mr Singh took charge of the ministry in December and he told the Economic Times: “There is no case to let airlines shut down for financial or safety reasons. We can recommend measures to ensure safety.

“We will not cancel licences because even one airline winding up has repercussions for the entire industry.

“World over, airlines are financially impacted. It is a rough patch for domestic carriers and we have to provide help to the sector.”

He also said that the government would ensure that the carriers got fuel at competitive prices and that working capital was to be made available to them.

Bharat Bhushan, the director general of civil aviation, met executives from Kingfisher and Air India Express in Mumbai in Thursday.

Mr Bhushan said that at a time when airlines were in financial difficulties, the regulator was bound to ask carriers to address its concerns.

He said: “We have been in touch with all the airlines… and we are ensuring that safety norms are ensured. We have asked them to come back in a few days and tell us what measures they will be taking.”

He also went on to deny that any carrier was in danger of having its licence cancelled, after the internal audit report was quoted as saying this might be considered.

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According to the Guardian, the International Air Transport Association has warned that global airlines will plunge into combined losses of $8bn (£5.1bn) next year if the eurozone crisis turns into a full blown banking crisis and recession.

According to IATA the best possible outcome, based on the EU governments “muddling through” and resolving the eurozone crisis, would be for global airlines to generate total profits of $3.5bn next year.

Director General and chief executive of IATA, Tony Tyler, told the Guardian: “The only open question is how deep the losses will be.”

IATA’s chief economist, Brian Pearce said that even though passenger numbers looked to be holding up surprisingly well in Europe, this was a “very fragile foundation” for future airline growth.

The struggling freight market is seen as a better indicator of what is ahead. Pearce continued: “While there isn’t much sign that travellers are feeling the pinch, the situation is very different for the shippers.” The biggest drop in the freight market is in Asia, down 15% over the last year, reflecting the fall of demand for Asia’s manufactured goods in developed economies.

The Guardian continued saying that the airlines’ strong recovery since 2009 has faltered. Pearce said relatively high fuel costs – even with oil prices falling from their peak, they are 30% higher than this time last year – contribute to a squeeze on airline profits.

The air passenger duty increase confirmed on Tuesday by the Treasury would, he said, cost the UK economy £4bn and 80,000 jobs by 2015.

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British Airways (BA) has axed plan to create 400 new jobs after the government announced Air Passenger Duty (APD) will rise next year.

BA will also have to delay plans to bring an extra plane into service due to the 8% rise in APD.

The tax rise will add hundreds of pounds to the cost of some journeys from next April and has prompted BA to scrap plans to create an extra 400 jobs next year.

BA’s chief executive Keith Williams said government policy was “uniquely hostile to aviation” and the tax rise left the company with “no alternative” but to cut back jobs, many of which would have gone to young people.

In the past the Treasury has considered abolishing the tax, however, on Monday 5 December it announced APD would not be scrapped or reduced. Airlines have strongly opposed the move.

Executives from easyJet, Ryanair, Virgin Atlantic and British Airways’ parent company IAG released a joint statement which said: ‘We are left with a tax that has already cost 25,000 jobs, is doing increasing damage to the prospects for economic recovery and sends a message to the world that Britain is a difficult and expensive place to do business.’

A spokesman for David Cameron said the Prime Minister was ‘disappointed’ by BA’s announcement and believed that APD was ‘an important part of the deficit reduction plan’.

Source: Metro

Picture by BA

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The Chancellor’s Autumn Statement has confirmed that the Government’s flight tax (APD), which is imposed on anyone flying from the UK, is set to be increased by 10% in April 2012.

According to FTN News, taxes also look set to be introduced on business jets, which will replace the shortfall from it being cut in Northern Ireland.

The CAA have indicated that in 2010 there were 7.4 million fewer UK passengers passing through UK airports and it is believed that APD is having a huge impact on the British economy.

The number of passengers passing through European airports has actually grown by 66.3million in 2010, which suggests the low UK growth is not solely to do with the economic downturn.

The Office of Budget Responsibility, which is the Treasury’s spending watchdog, cut the projections for APD income by £200 million in 2015/16,which clarifies the contradictory impact that the tax is having.
Also, recent ABTA research revealed that 43% of passengers said that high taxes would put them off flying.

Mark Tanzer, CEO ABTA told FTN News: “At a time when the UK economy needs jobs and growth, hiking taxes on aviation, a catalyst of economic growth, flies in the face of basic economics. This double-inflation increase will damage UK growth and drive down UK air passenger numbers when we need to stimulate the economy. APD is a tax on tourism and a tax on business travel.

“The Chancellor said today that he wants to support British companies and not tax them out of business or the global economy but his actions on flight taxes do not match his words. The Chancellor’s decision is bad for jobs, bad for growth and bad for passengers – ABTA will continue to lobby against these damaging tax hikes.”

Picture: Daniel Lobo

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