Lufthansa Group Posts Stunning Financial Turnaround

Saturday, March 04, 2023 at 10:06 AM ET

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A Lufthansa A330 departing Austin in 2019 with Air Force One in the background. (Photo: AirlineGeeks | Mateen Kontoravdis)

Lufthansa Group has posted an operating profit of €1.5 billion ($1.59 billion) for the 2022 calendar year. “Lufthansa is back,” stated Carsten Spohr, chief executive officer of Deutsche Lufthansa AG. “In just one year, we have achieved an unprecedented financial turnaround. With an operating profit of 1.5 billion euros, the Lufthansa Group has achieved a much better result than expected. Demand for air travel remains high in 2023.” Deutsche Lufthansa AG is the parent company of airlines Lufthansa, Austrian, SWISS, Brussels Airlines, Lufthansa CityLine, Air Dolomiti and Eurowings Discover.

In the previous financial year, the German consortium posted a €1.7 billion ($1.8 billion) loss on revenues of €16.8 billion ($17.8 billion). In 2022 the group saw revenues almost double to €32.8 billion ($34.75 billion). Passenger demand across the airlines of the Lufthansa Group more than doubled from 47 million carried in 2021 to 102 million in 2022.

Reflecting on the ‘unprecedented financial turnaround’, Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG said: “I have always made it clear that returning to a strong balance sheet was one of our top priorities in overcoming the crisis. Only a strong balance sheet provides the resilience needed to invest in the future of our business and to manage future crises. That is why I am extremely pleased with the progress made last year. We remain firmly committed to generating consistently strong free cash flows and continuing the deleveraging in 2023 and beyond.”

The Lufthansa Group had undertaken an ambitious transformation process and cost-cutting program across all areas of the business. The company reported that over 90 percent of this strategy had been completed through the end of the 2022 reporting year. The Lufthansa Group is also negotiating with the Italian Ministry of Economy and Finance on potential investment in the Italian airline ITA Airways.

Other elements of the group’s strategy include the evaluation of selling what it calls ‘non-core assets.’ In a press release highlighting the 2022 result Deutsche Lufthansa AG reports that ‘AirPlus and LSG’s remaining catering business, following the sale of the European part, will be sold as soon as market conditions permit. Preparations for a possible partial divestiture of Lufthansa Technik are proceeding according to plan as talks with selected investors have already begun.’

Looking forward to the upcoming European summer the Lufthansa Group expects to operate at 85 to 90 percent of 2019 pre-pandemic capacity. However, a note of caution was raised in that ‘capacity development will be limited by the bottlenecks still expected in the European aviation system.’ This follows previously announced cuts to summer schedules impacted by labor shortages within the aviation industry particularly affecting major airports.

Striking an optimistic note for the future of the Lufthansa Group Spohr said: “We are investing billions in new fuel-efficient and state-of-the-art aircraft. With innovative services, a new premium cabin on board, and new digital tools, we want to remain the quality and innovation leader in our industry.”

In addition, Spohr added: “Likewise, it is our ambition to drive forward effective climate protection, for example by being the first airline group worldwide to introduce Green Fares. The Lufthansa Group is already number one in Europe and number four worldwide. For our guests and our employees, we want to continue to grow, shape the future and expand our market position.”

John Flett

John has always had a passion for aviation and through a career with Air New Zealand has gained a strong understanding of aviation operations and the strategic nature of the industry. During his career with the airline, John held multiple leadership roles and was involved in projects such as the introduction of both the 777-200 and -300 type aircraft and the development of the IFE for the 777-300. He was also part of a small team who created and published the internal communications magazines for Air New Zealand’s pilots, cabin crew and ground staff balancing a mix of corporate and social content. John is educated to postgraduate level achieving a masters degree with Distinction in Airline and Airport Management. John has held the positions of course director of an undergraduate commercial pilot training programme at a leading London university. In addition he is contracted as an external instructor for IATA (International Air Transport Association) and has been a member of the Heathrow Community Fund’s ‘Communities for Tomorrow’ panel.

Lufthansa Group Announces Widebody Order

Zach Cooke

Friday, March 03, 2023 at 07:04 PM ET

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AirlineGeeks.com Staff

A Lufthansa A350 taxis in Munich. (Photo: AirlineGeeks | Fabian Behr)

On Thursday, the Lufthansa Group announced an order for new Airbus and Boeing jets bringing its current order book to 108 new aircraft from the manufacturers. The latest order announcement included 22 aircraft consisting of Airbus A350-1000s and A350-900s along with Boeing 787-9s valued at 7.5 billion dollars. This announcement also included a timeline for the ill-fated four-engine aircraft and older fleet types operated under the group. Airlines under the Lufthansa Group umbrella include Austrian Airlines, Brussels Airlines, Eurowings and Germanwings, Lufthansa Cargo, Lufthansa German Airlines, and SWISS and Edelweiss.

The makeup of the order included 10 A350-1000s, five A350-900s, and seven Boeing 787-9s. This current order compliments previous orders by the group which includes the types listed above in addition to the Boeing 777-9. The A350-900s will join a fleet of already 22 strong and a previous order list that included 28 of the type. The 787-9s will join three that are currently in service and add to an order list that was 29 strong before the announcement.

It was not specified who would receive the aircraft ordered, however, some clues were given for the landing spot of the A350-1000s by a press release issued by the Group. It was stated that the -1000s would be deployed on premium heavy markets and include a first-class cabin. Currently, only Lufthansa and SWISS operate aircraft with first-class cabins. SWISS also have fairly new Boeing 777-300ERs in its fleet which have an average age of just 5.8 years and are unlikely to receive the new A350-1000s on order. Thus, the -1000s will probably be operated by Lufthansa with the new first-class cabin that was put on display for the first time mere days ago.

Fleet Retirements

Four-engine fans will be saddened by the latest announcement as it hinted towards the eventual retirement of multiple sub fleets operated by the Group’s airlines in the “medium-term future:”

Boeing 747-400s operated by Lufthansa
Airbus A340-600s operated by Lufthansa
Airbus A340-300s operated by Lufthansa, Edelweiss and SWISS
Boeing 777-200s operated by Austrian
Boeing 767-300s operated by Austrian
Airbus A330-200s operated by Eurowings

It is important to note that in the announcement, the Airbus A330-200 was the only variant of the A330 mentioned to be retired. Brussels Airlines, Lufthansa and SWISS all operate the A330-300 variant which appears to be included in future fleet planning for now.

With the latest order announcement, it appears that the entire Austrian Airlines long-haul fleet will be getting a revamp as they currently only operate the 777-200 and 767-300, which have average ages of 23.4 years and 22.2 years respectively. However, it is unclear what types the airline will be receiving.

Of the list above, the Airbus A340-600s are the only aircraft in Lufhtnasa’s fleet listed to be retired that offer a premium first-class product to customers. The Airbus A380 and Boeing 747-8 also offer first class, however, those types are not on the proverbial chopping block from this announcement. In a recent release, the Cologne-based carrier also announced that they would be installing new revamped first and business-class seats on all new aircraft ordered and retrofitting aircraft currently in the fleet which have plans to stay. The A350-900s and 787-9s will be delivered with new business, premium economy, and economy-class products.

This order reinforces the already strong relationship that the Lufthansa Group has had in the past with both Airbus and Boeing. The Group has ordered and operated all Airbus fleet types since the 1970s. Lufthansa is also one of seven current customers for the new 777x.

Zach Cooke

Zach’s love for aviation began when he was in elementary school with a flight sim and model planes. This passion for being in the air only intensified throughout high school when he earned his Private Pilot Certificate. He then attended Embry-Riddle Aeronautical University, earning his certificates and ratings to later flight instruct and share his passion for aviation with others. He now resides in the North East living out his dream as an airline pilot.

Trip Report: Contour Airlines’ Essential Air Service from Plattsburgh, NY to Philadelphia

Vanni Gibertini

Thursday, March 02, 2023 at 10:00 AM ET

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Edited By:

Benjamin Pham

Contour Airlines Embraer 135 at Plattsburgh Airport (Photo | Airlinegeeks)

The closure of the U.S.-Canada land border due to the COVID-19 pandemic, which remained in place for over two years between March 2020 and November 2022 was particularly hard for some of the regional airports in the U.S. that heavily rely on Canadian passengers to generate traffic. Among those Plattsburgh International Airport, nicknamed “Montreal’s U.S. Airport”, located in the northern part of the State of New York, close to Interstate 87 and only 64 miles from the Canadian city of Montreal with its 3 million inhabitants.

All flights to Florida and Myrtle Beach, S.C. operated by Spirit Airlines and Allegiant Air were halted and only now are slowly coming back, but with much lower frequencies than before and without the return of Spirit Airlines, whose services used to be extremely popular among Canadian snowbirds as well as immigrants from the Caribbean and South American who would connect in Fort Lauderdale and make use of Spirit’s extensive network in the region.

Plattsburgh is trying to restart also with Contour Airlines, the operator who has won the contract for the Essential Air Service (EAS) to this town after the tumultuous exit by SkyWest, a regional operator on behalf of United Airlines that used to operate two daily flights to Washington Dulles, with a 50-seat Bombardier CRJ-200 aircraft.

Contour Airlines has now replaced this service with a double daily link to Philadelphia International Airport operated with a 30-seat Embraer 135 aircraft.

Airlinegeeks has tried the service on a mid-week day trip to Philadelphia International Airport at the end of February.

Mere Minutes from Parking Lot to Gate

The outbound flight LF 3901 was scheduled to depart at 8.00 a.m. with an estimated time of arrival at Philadelphia Airport at 9.10 a.m. The adventurous trip towards the airport on a snowy February morning with a 9°F (-13°C) temperature saw us arrive at around 6.40 a.m. and park our car right in front of the entrance at the small airport.

Terminal Building, Plattsburgh Airport (Photo | Airlinegeeks)

We had already checked in online, but the boarding pass did not have the “TSA PreCheck” logo despite us entering our Frequent Traveler Number in the booking. Since the airport was completely deserted, we decided not to bother the lonely check-in agent and take off our shoes for once.

The main terminal hall, opened in 2017 after a $55 million investment by the local Chamber of Commerce offering four gates with boarding jetways, was occupied by just a couple of people busy with the vending machines, since the only food outlet was still closed.

Plattsburgh Airport, terminal building (Photo | Airlinegeeks)

As the expected time of departure was approaching, there was no sign of the aircraft at the gate nor any announcement by the gate agent. At approximately 8.25 a.m. it was announced that the aircraft would be towed to the gate “shortly” and boarding would start.

We eventually got onboard just past 9 a.m. using the stairs outside the jetway and walking a few meters in the snow to reach the aircraft. The flight took off approximately 90 minutes late at 9.26 a.m. It was quite surprising how there was no sense of urgency on behalf of any members of the ground or flight crew, especially considering how the main purpose of this flight is to allow passengers to connect with short and long-haul flights at Philadelphia to reach a wide range of destinations. In fact, it is possible to make a reservation with connecting American Airlines flights in Philadelphia in the same transaction on the Contour Airlines website, and all point-to-point fares between Plattsburgh and Philadelphia include a full-size carry-on and a checked bag, which is quite rare these days.

Boarding process, Contour Airlines at Plattsburgh Airport (Photo | Airlinegeeks)

The aircraft has a three-abreast seating configuration, with one seat on the port side and two on the starboard side. The interiors are quite worn out with blue leather seats offering a very generous 36” seat pitch throughout the cabin.

View of the cockpit from the cabin of a Contour Airlines Embraer 135 (Photo | Airlinegeeks)

During the 60-minute flight the onboard service is limited to soft drinks served with a tray service (no cart in the alley) and a free snack (cookies or salted pretzels) served afterward, which may be seen as counterintuitive.

Onboard service Contour Airlines (Photo | Airlinegeeks)

The flight arrived in Philadelphia at around 10.30 a.m. disembarking at Concourse F.

Philadelphia Airport, Concourse F (Photo | Airlinegeeks)

A Puzzling Delay

The return flight LF 3904 was scheduled at 6.50 p.m. that same evening, but while on the train from Downtown Philadelphia to the airport a text message advised of a 45-minute delay due to a late arrival of the incoming flight. Therefore, at the airport, we decided to investigate with the check-in agent why our boarding pass was not displaying the “TSA PreCheck” logo. Apparently, this was due to an unidentified glitch, which was fixed in no time by the agent who provided us with a new boarding pass allowing us to use the preferential “TSA PreCheck” lane.

After having rearranged our wardrobe (the temperature in Philadelphia had reached 66°F (19°C) during the day), we proceeded through security and to Gate F5 to wait for our flight. The new departure time of 7.35 p.m. came and went without a single communication from the staff. A Contour agent used the computer terminal at Gate F5 to re-accommodate passengers of the flight to Ogdensburg, NY that had been canceled, but we had to wait until almost 8 o’clock to hear an announcement of a further delay to our flight. We eventually boarded and left the gate at around 9 p.m. landing at a snow-covered Plattsburgh Airport just after 10 p.m., almost two hours after our original arrival time.

This Contour Airlines service “does what it says on the tin”, providing a connection to a major international airport for a regional community that would otherwise be an isolated airfield on the foot of the Appalachian Mountains. The challenging weather conditions were certainly partly responsible for the delays experienced, but given the seemingly relaxed attitude towards timetables, we would definitely schedule ample connecting times should we have to use this flight to catch an onward international connection from Philadelphia.

Vanni Gibertini

Vanni fell in love with commercial aviation during his undergraduate studies in Statistics at the University of Bologna, when he prepared his thesis on the effects of deregulation on the U.S. and European aviation markets. Then he pursued his passion further by obtaining a Master’s Degree in Air Transport Management at Cranfield University in the U.K. followed by holding several management positions at various start-up carriers in Europe (Jet2, SkyEurope, Silverjet). After moving to Canada, he was Business Development Manager for IATA for nine years before turning to his other passion: sports writing.

GlobalX Obtains IATA Safety Audit Certification

Aviacionline

Tuesday, February 28, 2023 at 04:30 PM ET

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Pablo Diaz

One of GlobalX's first Airbus A320 aircraft registered N276GX (Photo: Global Crossing Airlines)

Global Crossing Airlines Group -GlobalX- successfully completed the International Air Transport Association’s (IATA) International Safety Audit (IOSA).

The program is an assessment system that analyzes an airline’s operational management and control. IOSA uses internationally recognized auditing principles and is designed to perform a standardized analysis of airline operations. It was created in 2003. Companies are included in the registry for a period of 2 years, after which they must renew their certification.

Ed Wegel, President and CEO of GlobalX, said “Receiving our IOSA certification means that both our passengers and our airline partners can be assured that GlobalX’s personnel, processes, and procedures meet the highest safety standards in the world. We believe this certification will open up new markets and opportunities for us.”

Peter Cerda, IATA Regional Vice President for the Americas, added: “We congratulate GlobalX on successfully completing its audit. GlobalX joins a community of more than 400 airlines worldwide in the IOSA registry. This is the global industry standard for airline operational safety.”

GlobalX is a part 121 airline that operates Airbus A320 family aircraft and primarily operates charter flights in the U.S., the Caribbean, Europe, and Latin America. The airline became the first U.S. operator of the Airbus A321 P2F just over a month ago. The company’s second A321P2F is undergoing conversion work in Lake City, Florida. Its third freighter aircraft is currently operating for the company in passenger configuration and will be converted starting in October 2023, with the intention of entering cargo revenue service by April 2024.

This article was originally published by Ismael Awad Risk on Aviacionline in syndication with AirlineGeeks.

Aviacionline

Norse Atlantic Boosts London Gatwick Long-Haul Low-Cost Offering

Aviacionline

Tuesday, February 28, 2023 at 04:03 PM ET

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Pablo Diaz

Norse 787 "Rondane" Rests at JFK. (Photo: Airline Geeks | Ezra Gollan)

Norse Atlantic Airways is strengthening its London Gatwick (LGW) operation with four new routes to the United States for the 2023 summer season.

The British capital becomes the company’s main base where it will offer seven transatlantic services and an offer of 25,688 weekly seats between the U.S. and the United Kingdom. In addition, the low-cost will be offering customers affordable fares for their travel to North America.

According to data obtained through the UK Civil Aviation Authority (CAA), 3,260,392 passengers were mobilized in 2019 between London – Gatwick (LGW) and the United States, the latter being the main long-haul market of the British capital’s second main airport.

Norse Atlantic’s new flight schedule in the U.S.

These services are subject to government approval.

Boston (BOS)

Starts from September 2, 2023.

London/Gatwick – Boston Flight Z0 750 LGW 15:00 – BOS 17:20 Monday, Wednesday, Thursday, Friday and Saturday.
Boston – London/Gatwick Flight Z0 751 BOS 21:00 – LGW 08:45+1 Monday, Wednesday, Thursday, Friday and Saturday.

Washington – Dulles (IAD)

Starts from June 1, 2023.

London/Gatwick – Washington Flight Z0 740 LGW 15:00 – IAD 18:20 Monday, Tuesday, Wednesday, Friday, Saturday and Sunday.
Washington – London/Gatwick Flight Z0 741 IAD 20:25 – LGW 08:45+1 Monday, Tuesday, Wednesday, Friday, Saturday and Sunday.

Los Angeles (LAX)

Starts from June 30, 2023.

London/Gatwick – Los Angeles Flight Z0 711 LGW 10:35 – LAX 14:10 daily flights.
Los Angeles – London/Gatwick Flight Z0 712 LAX 16:25 – LGW 11:00+1 daily flights.

San Francisco (SFO)

Starts July 1, 2023.

London/Gatwick – San Francisco Flight Z0 731 LGW 10:00 – SFO 13:25 Tuesday, Thursday and Saturday.
San Francisco – London/Gatwick Flight Z0 732 SFO 15:25 – LGW 09:50+1 Tuesday, Thursday and Saturday.

All routes will be operated on Boeing 787-9 Dreamliner aircraft seating 338 passengers in two classes (56 Premium Economy/282 Economy) and promotional fares are available from EUR 168 each way.

For the 2023 summer season Gatwick Airport (LGW) will be connected to the following destinations in North America: New York (JFK), Fort Lauderdale (FLL), Orlando – International (MCO), Washington (IAD), San Francisco (SFO), Los Angeles (LAX), Boston (BOS), Las Vegas (LAS), Tampa (TPA), Orlando – Melbourne (MLB), Cancun (CUN), Calgary (YYC), Vancouver (YVR), Montreal (YUL) and Toronto (YYZ).

This article was originally published by Rainer Nieves Dolande on Aviacionline in syndication with AirlineGeeks.

Aviacionline

Porter Set to Launch New Flights at Montréal – Saint Hubert Airport

Aviacionline

Tuesday, February 28, 2023 at 03:58 PM ET

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Edited By:

Pablo Diaz

A Porter Embraer 195-E2 (Photo: Embraer)

Porter Aviation Holding (PAHI) has partnered with Montreal – Saint Hubert Airport (YHU) to create a new terminal that will serve more than four million passengers. Construction will begin in the first half of 2023 and is scheduled for completion by the end of 2024, providing Porter with a second airport to serve the Montreal market.

Porter will continue to expand its operations at Pierre Elliott Trudeau International Airport (YUL) and will also have a cabotage network at YHU. In an initial phase, the airline has identified 10 potential routes at Saint – Hubert (YHU), from Vancouver (YVR) in the west and to St. John ‘s (YYT), in the east.

The Canadian airline is also looking to connect YHU to its main hubs in Toronto: Billy Bishop Airport (YTZ) and Lester Pearson Airport (YYZ). This will provide Porter with a more convenient flight offering between Canada’s two major cities. The routes will be served by 78-seat De Havilland Dash 8-400 and 132-seat Embraer E195-E2 aircraft.

The development of the new Saint Hubert (YHU) facility follows the same Billy Bishop (YTZ) revitalization model that Porter has been a part of for the past two decades. Porter’s commitment at YTZ was the catalyst for route development and infrastructure investments that led to the airport to transport nearly 3 million passengers on more than 20 routes, with an annual economic impact of $3 billion.

Saint Hubert (YHU) will be the next Billy Bishop (YTZ) in the Province of Quebec

YHU’s new terminal will provide more efficient passenger processing, saving the travel time and lounge usage that Billy Bishop travelers are familiar with. PAHI originally designed and built the modern terminal at YTZ that is in use today.

“Saint-Hubert has incredible potential as a complementary secondary airport for Montreal, with a convenient location for an important part of the local market and also easy access to downtown Montreal,” said Michael Deluce, president and CEO of PAHI.

The new terminal will be available to other airlines, including Pascan Aviation. Pascan’s existing Saint Hubert (YHU) network on regional flights from Quebec. Porter and the regional airline intend to create a codeshare partnership, this will provide travelers with greater options to fly between the Province of Québec and other regions of Canada.

“With an ambitious fleet plan, state-of-the-art aircraft and an established track record of airport management, Porter is the perfect match for Montreal Saint-Hubert Airport. This new partnership will provide world-class air services to the people of the Greater Montreal and Quebec regions,” said Yanic Roy, managing director of Montréal-Saint-Hubert Airport.

The investment will create more than 500 permanent jobs at Saint Hubert (YHU), including full-time positions in terminal and airline operations, in addition to establishing a new pilot and flight attendant base.

This article was originally published by Rainer Nieves Dolande on Aviacionline in syndication with AirlineGeeks.

Aviacionline

Kenya Airways to Lease Two 737-800Fs to Expand Cargo Capacity

Victor Shalton

Tuesday, February 28, 2023 at 10:00 AM ET

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Edited By:

Parker Davis

A Kenya Airways Boeing 787-8 at Schiphol Airport. (Photo: AirlineGeeks | James Dinsdale)

Kenya Airways Cargo is set to expand its freighter fleet as it seeks to meet growing demand for cargo services.

The airline will lease two Boeing 737-800F aircraft in the third quarter of the year, according to CEO Allan Kilavuka, a move that comes as the airline looks to capitalize on the growing demand for air cargo and generate more revenue from its freight business amid heightened competition from other carriers in the region.

“We shall lease the aircraft in quarter three,” Kilavuka said, without providing details on the leasing.

The new freighters have better range and can reach further afield than the existing freighters, with the ability to carry around 20 tonnes to destinations in the Middle East, India, Istanbul, and Southern Europe.

KQ’s current Boeing 737-300F fleet have a lower cargo capacity and cannot operate long-range flights. The airline currently operates two 737-300F aircraft. The additional aircraft will help Kenya Airways Cargo tap into the growing demand for cargo services, which has surged during the pandemic.

Increased Cargo Appetite

Following the success of its cargo-only flights during the Covid pandemic, the airline developed a customer base during the Covid pandemic that is yearning for more, especially to the Middle East and India, according to Kenya Airways’ cargo director, Dick Murianki, speaking on the sidelines of the Air Cargo Africa event in Johannesburg.

Speaking at the conference session later in the day, the airline’s chief executive, Allan Kilavuka, said that two Boeing 787-9 Dreamliners had been used on cargo-only flights to long-haul destinations in China and Europe during the pandemic, with each aircraft able to carry around 50 tonnes per flight.

The conversion enabled Kenya Airways to increase its cargo volume by 29% to 63,726 metric tons in the year ended December 2021, compared to the same period in 2020.

The CEO added that outbound volumes during the cargo-only operation had been much stronger than inbound, but there could be an opportunity to use Nairobi as an import hub for the rest of Africa.

The Covid-19 pandemic has prompted a surge in air cargo demand, as passenger flights were significantly reduced due to travel restrictions. Cargo carriers have stepped in to meet the demand, using their freighter fleets to transport medical supplies, perishable goods, and other essential items.

Kenya Airways Cargo’s expansion of its freighter fleet is a strategic move to capitalize on the growing demand for air cargo, as the airline aims to develop its cargo operations further.

Freighters, as compared with bellyhold operations, allow carriers to operate long-haul flights to airports where passenger demand isn’t strong enough to justify the use of larger aircraft.

The success of cargo-only operations during the pandemic has demonstrated the potential for expanding air cargo services in the future, and the investment in new freighters will enable Kenya Airways Cargo to position itself as a leading provider of air cargo services in Africa.

Victor Shalton

Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.

Suid Cargo Takes Off as South Africa’s Newest Cargo Airline

Victor Shalton

Tuesday, February 28, 2023 at 09:02 AM ET

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Edited By:

Jack Dawin

An Eva Air Cargo 747 (Photo: AirlineGeeks | Terrill Murriel)

South Africa is set to welcome a new cargo airline, Suid Cargo, which will commence non-scheduled cargo flights from Johannesburg’s OR Tambo International Airport in the second quarter of 2023.

The airline plans to operate to over 20 destinations across Southern, West and East Africa, including Mozambique, Madagascar, Malawi, Mauritius, Zambia, Namibia, D R Congo, Kenya, Uganda, Tanzania, Angola, and Rwanda.

The carrier, 25% owned by Kenya-based cargo airline Astral Aviation, will begin by leasing a Boeing 727-200 freighter from Astral Aviation and will subsequently acquire additional freighters such as Embraer 190 Freighter and Airbus 320F or Boeing 737-800F in 2024. The airline’s long-term goal is to transition to a scheduled carrier in 2024 and to operate on the domestic network.

Announcing the new airline at Air Cargo Africa event in Johannesburg, Kevin Moodley, Commercial Director of Suid Cargo Airlines, has said that the new airline will promote exports from South Africa in addition to transit shipments to over 20 African destinations. The airline will also have a unique Sea-Air Cargo product from the Ports of Durban and Cape Town, reducing transit time to landlocked regions in Africa.

The announcement comes amidst heightened competition in the air freight industry, with other carriers like Ethiopian Cargo, Kenya Airways Cargo, RwandAir Cargo, and Astral Aviation reinforcing their fleets to meet the growing cargo demand.

Air freight has witnessed a tremendous surge over the past few years, especially during the pandemic when commercial passenger flights were grounded.

The CEO of Astral Aviation, Sanjeev Gadhia, has expressed his delight at supporting South Africa’s newest cargo airline, Suid Cargo Airlines, and is confident that the start-up cargo airline can scale its operations to cover Southern, West and East Africa, including Asia, the Middle East, and Europe, using their B747-400F, B767F and B757F on a charter basis.

Thomas Honiball, Accountable Manager, and CEO of Suid Cargo has expressed his excitement at the launch of the new cargo airline and is optimistic about the growth prospects of the African air freight market. The cargo airline’s focus on exports and transit shipments aligns with the South African government’s efforts to promote trade and investments in the continent.

The launch of Suid Cargo Airlines is a positive development for the air freight industry in South Africa and the wider African continent. The airline’s unique Sea-Air Cargo product and its focus on exports and transit shipments will enable it to cater to the growing demand in the region. With plans to acquire additional freighters and transition to a scheduled carrier in 2024, Suid Cargo is set to be a major player in the African air freight industry.

Victor Shalton

Cathay Pacific Adds Flights to Japan As Travel Restrictions Are Pulled Back

Pete Ainsley

Monday, February 27, 2023 at 08:51 PM ET

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Edited By:

Parker Davis

A Cathay Pacific 777 lifts off from Dusseldorf, Germany. (Photo: AirlineGeeks | Fabian Behr)

Cathay Pacific has confirmed that it will ramp up the flight frequencies to Japan. It comes after the announcement of Japan to scrap the travel restrictions. Japan has limited the number of flights from Hong Kong since the announcement of China to reopen its border.

“We welcome the decision made by the Japanese government to remove the maximum number of flights each carrier can operate from Hong Kong SAR to Japan,” Cathay Pacific said in a statement.

Hong Kong Express, Cathay Pacific’s low-cost carrier, will adjust its frequencies in response to the new policies. Earlier, Hong Kong Express has cancelled over 100 flights to Japanese destinations, such as Fukuoka, Okinawa, Osaka and Tokyo’s Narita and Haneda Airport for March.

Cathay Pacific said it will operate 83 and 94 flights in April and May respectively, compared to March, it provides 72 flights to Japan every week. However, it is expected the schedule couldn’t rebound to pre-covid levels due to the shortage of staff in Japan.

Cathay Pacific has more than its fair share, cancelling the flights to Japan during the Lunar New Year Holidays in January.

“Unfortunately, despite demand being high for Japan, we had to cancel some of our flight due to restrictions.” Lavinia Lau, Chief Customer and Commercial Officer said.

Meanwhile, South Korea is expected to lift its travel restrictions in March as well. Earlier, the flights coming from Hong Kong and Macau must landed at Seoul’s Incheon Airport. Also, the passengers from both cities are not allowed to transit at Incheon. It is expected Hong Kong carrier could touch down other airports in the country again, such as Jeju and Busan.

In addition, Taiwan has fully reopened to Hong Kong citizens on Feb. 20. The long-awaited decision is paving the way for the recovery of aviation industry. Taiwan is one of Hongkongs’s favorite travel destinations as well. China Airlines, the main rivals of Cathay Pacific, has announced that it will operate 40 weekly flights in March. EVA Air will also enhance its services by the end of March.

Hit One Million Milestone

Cathay Pacific has struggled to keep its head above water during the Covid. After three years of the pandemic, the carrier revealed that it had carried over 1 million passengers in January, an increase of 4,000% compare with same time last year. It was the first time the airline reached a million passengers since the pandemic began in early 2020. However, the traffic was only 33% of pre-Covid levels.

The flag carrier saw the demand of leisure travel over the Lunar New Year Holidays was strong, particularly to Japan, Thailand and Singapore. It also resumed the flight operation to Phuket, Thailand. As a result of the surged demand to China, the airline has resumed the services to Xian, operating up to three daily flights Shanghai, 11 flights per week to Beijing.

Pete Ainsley

IAG Acquires Full Control of Air Europa

Andrew Chen

Monday, February 27, 2023 at 03:00 PM ET

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Edited By:

Benjamin Pham

An Air Europa 787-8 in Madrid. (Photo: AirlineGeeks | William Derrickson)

International Airlines Group (IAG) has agreed to purchase the remaining 80% stake of Air Europa that it did not already own from Spanish company Globalia. In announcing strong financial results for 2022 and a positive outlook for 2023, IAG revealed that it had finalized an agreement to pay 400 million Euros ($422 million) to acquire full control of the Spanish airline.

The Acquisition

IAG is the holding company that owns Aer Lingus, British Airways, Iberia, LEVEL and Vueling. It first announced its intention to acquire Air Europa for one billion Euros in November of 2019. However, the deal was not finalized before the COVID-19 pandemic and the purchase price had dropped to 500 million euros by January of 2021. IAG later backed out of the deal before converting a loan to a 20% stake in Air Europa in August of 2022.

Payments to acquire the remaining 80% stake are structured as follows: 200 million Euros will be paid when the deal is approved by regulators. Once the deal closes, 100 million euros will be paid in IAG shares, and the final 100 million Euros will be paid in cash. The transaction is expected to be completed in about 18 months.

IAG intends to maintain Air Europa and Iberia as separate brands. Air Europa — which is currently a member of SkyTeam — is likely to leave the alliance to join British Airways and Iberia, to become a Oneworld member. However, it is unclear whether Air Europa will join the oneworld transatlantic joint venture.

Air Europa currently operates a fleet of approximately 40 aircraft, consisting of Boeing 737 and Boeing 787 Dreamliners. The carrier operates short-haul routes within Europe as well as long-haul transatlantic flights from its hub at Madrid’s Adolfo Suárez Madrid–Barajas Airport. Air Europa has a strong presence in Latin America and the proposed transaction would allow for IAG to strengthen its position in the region.

Market Consolidation and Regulatory Approvals

Since IAG already owns the two largest airlines in Spain, Vueling and Iberia, the acquisition of Air Europa would solidify the group’s dominance in the Spanish air travel market. The transaction has drawn the attention of regulators in the past and IAG has noted that the acquisition is subject to regulatory approval.

A previous iteration of the deal saw opposition from the European Commission, which stated that the proposed transaction could significantly reduce competition on 70 origin and destination city pairs. It further expressed concerns that existing competitors would not provide sufficient competition against IAG.

Nevertheless, IAG is optimistic about the deal, with Chief Executive Officer Luis Gallego stating that, “This acquisition will enable us to grow Madrid as a hub, offering a gateway to Latin America and beyond, with benefits for customers, employees and shareholders.”

Andrew Chen

Andrew is a lifelong lover of aviation and travel. He has flown all over the world and is fascinated by the workings of the air travel industry. As a private pilot and glider pilot who has worked with airlines, airports and other industry stakeholders, he is always excited to share his passion for aviation with others. In addition to being a writer, he also hosts Flying Smarter, an educational travel podcast that explores the complex world of air travel to help listeners become better-informed and savvier travelers.