Tag: IATA

IndiGo launches a pilot for IATA Travel Pass

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s largest airline IndiGo on Tuesday has launched a pilot for IATA Travel Pass which is aimed to help in the recovery of international travel demand.

The airline has partnered with International Air Transport Association (IATA) for the travel pass and has become the first airline in India to take part in this initiative.

The IATA Travel Pass, which will launch on August 20, is a mobile app that helps travellers to store and manage their verified certifications for COVID-19 tests or vaccines.

Also read: IndiGo issues wrong ticket, cancels flight, and tells passenger flight has been missed; has this happened with you?

The pass will enable IndiGo passengers to create a ‘digital passport’ to verify their pre-travel test or vaccination status to meet the standard operating procedures of the destination.

The passengers will be able to share the test and vaccination certificates with authorities as well as airlines to facilitate travel.

“This initiative is a significant step to prepare for a new normal, especially with regards to international travel. Today, most countries have implemented protocols for travellers across the globe and this IATA Travel Pass will simplify and digitize the requisite passenger information for respective countries,” CEO Rono Dutta said.

Also read: Top 10 airlines in the world: Gulf-based carrier is ranked No 1 and it’s not Emirates

The platform will also enable authorized labs and test centres to “securely” send test results or vaccination certificates to passengers, IndiGo said.

The global registry, operated by IATA, will manage, and allow the “secure” flow of necessary information amongst all stakeholders, IndiGo added.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IATA urges India to lift restrictions on international flights, end domestic fare capping

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The International Air Transport Association (IATA) urged the Indian government to remove COVID-19 related restrictions on airlines in the country. The body of 290 global airlines wants India to resume operation of international flights along with an end to capacity restrictions and fare capping for domestic airlines.

The operation of international flights was suspended in India following the second wave of the COVID-19 pandemic. However, the country has established air travel bubbles with over 25 countries. The restrictions on capacity and fares were imposed by the Ministry of Civil Aviation over a year ago in May, when flight services first resumed after the nationwide lockdown.

Director General of IATA Willie Walsh said on July 27 the Indian government should make decisions based on data and science, and remove the restrictions that are impeding the recovery of the aviation sector.

“Politicians are quick to impose measures but slow to remove them,” Walsh told the media at a press event. Walsh added that travel bubbles were not intended for long-term use but for the return of stranded citizens in other countries. The current global situation was different from last year, he said.

This is not the first time Walsh has criticised COVID-19 related impositions on airlines. The apex global aviation industry body had stated in the past that all restrictions should be temporary and be removed at the earliest possible time. Walsh has advocated the removal of restrictions based on data gathered by the IATA, which predicted a catastrophic economic impact on the industry due to the restrictions.

Walsh also hoped that the Indian government would soon end the capacity restrictions and fare caps on domestic airlines, something which he says has further contributed to the slow recovery of the sector. “Recovery is significantly impacted by regulations,” Walsh added.

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Indian aviation market’s recovery significantly impacted by cap on fares, capacity: IATA DG

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian aviation market’s recovery has been significantly impacted by caps on fare and capacity which have been placed by the government since May last year, the director-general of global airlines body IATA, Willie Walsh, said on Tuesday.

When India resumed scheduled domestic flights on May 25 last year after a two-month break in view of the COVID-19 lockdown, it had allowed carriers to operate not more than 33 percent of their pre-Covid domestic services. This capacity cap has been gradually increased and it now stands at 65 percent.

At a press conference, Walsh said, “Without question, the demand in India is way in excess to the capacity that is in the market at the moment… If these capacity constraints were removed, without question, there would be significantly more demand for flights that are operating in India.”

Currently, Indian carriers are operating approximately 1,700 domestic flights daily, which is around 55 percent of their pre-Covid services. Along with capacity cap, India had imposed lower and upper caps on airfares based on flight duration when services were resumed on May 25 last year. The fare caps are still in place.

“Fare caps distort competition. All airlines have different cost bases and are in a position to offer capacity in the market at different prices. That is very positive to stimulate competition,” the International Air Transport Association (IATA) director-general said. “The recovery has been significantly impacted by the regulation (fare caps and capacity cap) that has been put in place,” he said.

The lower limits were imposed by India to protect financially weaker airlines. The upper limits were imposed to ensure that consumers are not overcharged.

“I can understand why the government introduced some of these measures (fare caps and capacity cap) initially. If you go back to January and February of 2020, we were not really clear about what we were dealing with. We were dealing with an unknown virus,” Walsh said.

“I think you can accept that governments need to take measures in an environment like that. But we are well beyond that now. We understand this virus a lot better. Vaccines are available. Healthcare — in terms of how you treat the people who have the virus — has moved significantly forward,” he said.

So, the measures that were put in place during the initial phase of the pandemic really do have to be challenged and questioned as to whether they are still relevant in an environment where the risk that “we face is very different now from the risk that we faced 15-17 months ago”, he said.

The IATA has around 290 airlines as its members, comprising around 82 percent of the global traffic. Walsh said it is time for India to restart scheduled international flights.

India suspended scheduled international flights on March 23 last year. However, it has permitted special international flights under air bubble arrangements formed with around 27 countries since July last year.

“The initial reasons for introducing these restrictions (air bubble arrangements) are long since over because anyone who needed to be repatriated had plenty of opportunities to be repatriated,” Walsh said.

What it is doing now is distorting the market, he said. “So, I would argue that those measures that may have been just about right when they were introduced are no longer relevant in the current environment,” Walsh added.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian domestic passenger traffic was 49.6% lower in November: IATA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Domestic passenger traffic growth in India was 49.6 per cent lower in November last year as compared to the corresponding month in 2019, said global airlines body IATA on Thursday.

“In India, domestic RPKs contracted by 49.6% year-on-year in November vs. 55.6% fall in October. A further improvement is expected in the near-term as more schools and businesses reopen,” said a report issued by the International Air Transport Association (IATA).

The IATA, which represents around 290 airlines comprising 82 per cent of global air traffic, measures passenger growth in revenue passenger kilometres (RPKs), which is calculated by multiplying the number of passengers to the distance travelled by them. Scheduled domestic passenger flights resumed in India on May 25 last year after a gap of two months due to the coronavirus-induced lockdown. Currently, Indian carriers are permitted to operate 80 per cent of their pre-COVID domestic flights.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IATA says airlines expected to lose $84.3 billion in 2020 globally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global airlines body IATA said on Tuesday that airlines across the world are expected to lose USD 84.3 billion in 2020 due to the coronavirus pandemic, calling it the “worst year” in the history of aviation.

Even as the number of coronavirus cases continue to rise globally, various countries have restarted domestic and international air travel, albeit with much precautions and in a curtailed manner.

“Financially, 2020 will go down as the worst year in the history of aviation. On average, every day of this year will add 230 million to industry losses. In total that’s a loss of 84.3billion,” said Alexandre de Juniac, IATA’s Director General and CEO, in a statement.

The International Air Transport Association (IATA) said revenues will fall 50 per cent to USD 419 billion in 2020 from USD 838 billion in 2019.

“In 2021, losses are expected to be cut to 15.8 billion as revenues rise to 598 billion,” said the IATA, which has around 300 airlines as its members that handle around 82 per cent of the total global air traffic.

After a gap of two months, India resumed its scheduled domestic passenger flights on May 25. Scheduled international passenger flights continue to remain suspended in India.

De Juniac said as per the IATA’s estimates, 2.2 billion passengers will travel through flights this year and the airlines will lose USD 37.54 per passenger.

“That’s why government financial relief was and remains crucial as airlines burn through cash,” he said.

Globally, over 4 lakh people have died of coronavirus and more than 70 lakh have tested positive for the virus ever since its emergence in China last December.

Around 2.66 lakh people have been infected and around 7,500 people died due to the infection in India till now.

De Juniac said, “Provided there is not a second and more damaging wave of COVID-19, the worst of the collapse in traffic is likely behind us. A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organization (ICAO) to keep passengers and crew safe.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Middle Row: Passengers don’t like it, airlines can’t drop it

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As airlines take to the skies again after a two-month hiatus, the debate over empty middle seat is raging globally. Back home, the Supreme Court on Monday reprimanded the government for resuming flight operations allowing middle seat bookings in flights.

Even as the apex court allowed Air India to keep operating its scheduled flights with the middle seats filled for the next 10 days, it cautioned the government that it should be more concerned about the health of its citizens rather than the health of airlines.

This move could pose a huge setback for not only airline operators but also for travel agencies.

Speaking to CNBC-TV18, Rajesh Magow, Group CEO, MakeMyTrip, said, “This was bit of a surprise to be honest. I believe this issue was being discussed at various meeting between the airlines, DGCA and the Ministry of Civil Aviation and it was resolved saying, it was not be possible.”

“The minister had gone on record to say that even if you get rid of the middle seat, even then you will not be able to achieve social distancing. Also, keep in mind that none of the global airlines were maintaining it, as they had to restart operations. So we thought as an industry that was resolved so I think we will have to go back to drawing board. But as of now we heard anything further on this yet”

Paytm Travel said that the company has seen an increase in demand for air tickets. It added that a majority of the tickets being sold are of travellers going from metros to tier-II and smaller cities.

Speaking on the row over the middle seat, Abhishek Rajan, Sr. Vice President at Paytm Travel, said, “I believe the whole nation is united with a core objective of ensuring everyone’s wellbeing. The aviation sector along with the government is putting best efforts to move the economy with all possible precautions. We see travellers returning to their hometowns, which is unique in a way, the leisure and work travel is already paused as everyone is taking necessary precautions.”

To recap, Hardeep Singh Puri, Minister of Civil Aviation, on May 7 told CNBC-TV18 that, “Keeping the middle seat vacant has not been an option for any airline in the world. Airlines already operate on very thin margins and if you keep 1/3rd of aircraft empty many of them will choose not to fly. This might be counterproductive. We would need to take other precautions.”

Empty Middle Seat: To (Let It) Be Or Not To Be
The International Air Transport Association (IATA), a global trade organisation that represents 290 airlines and covers 82 percent of all air traffic, isn’t recommending middle seats be left vacant or limiting passenger seating in any way. This was one of the many points put together by the trade body that shared a 21-page biosecurity road map to resume operations this week.

Globally, after several passengers tweeted pictures of packed plane, with middle seats occupied, US carriers like United Airlines came under fire. United Airlines is pledging to take extra precautions to maintain social distancing from late April. The measure include limiting seat selections in all cabins so that flyers won’t be able to select seats next to each other or middle seats where available.

According to a Reuters report, in Malaysia and Indonesia, planes need to be half-empty. Other players who have on boarded the vacant middle row idea include low-cost British airline EasyJet, while budget carrier Frontier Airlines charged customers $39 to sit next to an empty seat, but later dropped the fee after being criticised for the this ‘crisis profiteering’ move.

Meanwhile, many European airlines are resisting this move to leave the middle seat empty but working on designing other safety measures to reassure passengers.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IATA says regulating airfares a ‘step back’; airlines need to have freedom on commercial decisions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global airlines’ grouping IATA on Thursday said the government’s decision to regulate airfares is a “step back” and carriers need to have the freedom to make their commercial decisions, including pricing of air tickets.

The comments came hours after the civil aviation ministry announced that airfares would be capped for three months till August 24 after domestic flight services resume on May 25.

Commercial domestic and international flights have been under suspension since March 25 when the nationwide lockdown was imposed to curb spreading of coronavirus infections.

“Airlines need to have the freedom to make their commercial decisions, including the pricing of airfares. Hence, we recognise and hope that this is a one-time measure as a result of COVID-19 and will be discontinued on August 24.

“India’s Air Corporation Act was repealed in 1994, so the announcement to regulate airfares more than 2 decades later comes across as certainly a step back,” IATA Assistant Director (Corporate Communications – Asia Pacific) Albert Tjoeng told PTI.

Airfares were deregulated after repealing the Act in 1994.

According to him, the government should instead make it a priority to support the country’s airline industry through practical financial measures during this unprecedented crisis impacting the airline industry worldwide.

The International Air Transport Association (IATA) is a grouping of nearly 290 airlines. Air India, Vistara, IndiGo and SpiceJet are also members of IATA.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coronavirus impact: Airlines face threat of going bankrupt, says IATA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Travel restrictions due to the outbreak of COVID-19 pandemic across the globe has cast a shadow over the aviation sector. The International Air Transport Association (IATA) said the sector is bracing for a 48 percent fall in passenger demand in 2020.

According to IATA, passenger revenue is expected to slump by 55 percent this year. In its forecast, the aviation industry body said domestic travel restrictions will last for nearly 3 months and that international restrictions could last even longer.

In an interview to CNBC-TV18, Alexandre De Juniac, DG and CEO of IATA, said airlines are staring at losses of more than $310 billion.

“The global impact is absolutely tremendous. It is most severe and an unprecedented crisis we have ever seen in the air transport industry. We have estimated the impact in terms of loss of revenues for airlines around more than USD 310 billion. The number of jobs that could be endangered by the COVID-19 crisis impact on the airline industry is 25 million jobs worldwide,” he said.

Juniac further added that airlines are facing the threat of going bankrupt. “We have estimated that for the second quarter of 2020, only the second quarter, we will burn $61 billion of cash. So, the main risk we are facing is to run out of cash and to be bankrupt because of this cash drain,” he said.

“We are asking governments to put together rescue packages, financial packages to inject cash urgently in our balance sheet and in our P&L. That is the most critical and urgent measure we are asking government for and they have shown a very open and supportive attitude,” he added.

He also said the governments can look at buying stake in private airlines.

“We have approached more than 90 governments all over the world to ask them to put together financial rescue packages. What we said is that we need cash injection, we need financial support by whatever means.”

“So, it means credit loans, it means a treasury facility, state guarantee on loans and credits, capital injection and this package that we are asking for must be adapted by the situation of each country and each airline.”

“So, we are advocating in favour of measures that are tailored, customised taking into account the situation of each airline in each country. So, if it goes up to capital injection and government taking stakes, which has already happened or has been already announced in some countries, we say if it is necessary, do it.” Juniac added.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19: Airline revenues to nosedive by 55% in 2020, says IATA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Airline passenger revenues are set to plunge by 55 percent, or $314 billion, in 2020 due to the coronavirus pandemic, the International Air Transport Association said on Tuesday.

It marks a sharp worsening of the forecast for the aviation industry, as just three weeks ago the decrease was predicted to be 44 per cent, or $252 billion.

“The industry’s outlook grows darker by the day,” said IATA chief executive Alexandre de Juniac.

“The scale of the crisis makes a sharp V-shaped recovery unlikely. Realistically, it will be a U-shaped recovery with domestic travel coming back faster than the international market.

“Without urgent relief, many airlines will not survive to lead the economic recovery.”

As of early April, the number of flights worldwide was down by 80 per cent compared to the same period in 2019, said IATA, which brings together 290 airlines.

The crisis began for the aviation sector at the end of January when airlines suspended services to China, where the COVID-19 virus outbreak began.

Since then IATA has repeatedly increased the estimated revenue losses as border closures have followed the spread of the new coronavirus around the world.

In its latest assessment, the association factored in longer-than-expected restrictions on international travel, and the virus spreading in Africa and South America.

De Juniac said that meetings with governments would start later this week to work up a plan to restart the sector, first by getting domestic flights going again, followed by regional and finally intercontinental routes.

“Monitoring the health of passengers will be a key element in this restart,” he said.

Although he could not say for the moment what form that would take, he said there should be uniformity around the world to avoid a patchwork approach.

IATA is calling for airlines to be given financial relief in the form of loans, loan guarantees, support for the corporate bond market and tax relief.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coronavirus outbreak: Governments offer financial lifelines to airlines, at a price

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shattered airlines were left counting the cost of government support as countries from the United States to New Zealand set out conditions for bailouts needed to absorb the shock of the coronavirus pandemic.

Conditions include provisions that loans may convert to government equity stakes, while US airlines cannot increase executive pay or provide “golden parachutes” for two years. Air New Zealand’s bailout also depends on the company suspending its dividend and paying interest rates of 7 percent to 9 percent.

New Zealand on Friday offered its national carrier a NZ$900 million ($510 million) lifeline, which Finance Minister Grant Robertson said would help it survive after the government banned all non-resident arrivals to the country.

“That puts us in a very good position over the next several months,” Air New Zealand chief executive Greg Foran told reporters of the loan, which it will not draw down immediately. “We would expect the airline industry will look different at the end of this. Not all airlines are going to survive.”

Under the $58 billion US proposal for passenger and cargo carriers, the US Treasury Department could receive warrants, stock options, or stock.

“We are not bailing out the airlines or other industries – period,” US Senate Appropriations Committee Chairman Richard Shelby said. “Instead, we are allowing the Treasury Secretary to make or guarantee collateralized loans to industries whose operations the coronavirus outbreak has jeopardised.”

Norway will back airlines with credit guarantees worth up to 6 billion Norwegian crowns ($537 million), half of them to Norwegian Air Shuttle ASA. Conditions include raising money from commercial banks and the equity market.

Finland, which owns a 56 percent stake in Finnair, said it would guarantee a 600 million euro ($645 million) loan for the state carrier. The firm said it was implementing a funding plan that included drawing on available credit lines, sale and leasebacks of planes. Its stock jumped 16 percent.

The International Air Transport Association (IATA) has forecast the industry will need up to $200 billion of state support, piling pressure on governments facing demands from all quarters and a rapid worsening in public finances as economies slump.

“Money is very tight in most countries, so governments need to step back and be hard-nosed about any form of rescue … but it all must come with strict conditions or strings, attached,” Shukor Yusof, head of aviation consultancy Endau Analytics, said in an email.

JOBS GONE

Even with financial assistance, airlines around the world are placing thousands of workers on unpaid leave as they slash passenger capacity, deepening the shocks to local economies.

British Airways pilots will have to take two weeks of unpaid leave in each of April and May, and a cut to basic pay spread over three months, the company said on Friday in a joint statement with the British Airline Pilots’ Association.

Britain’s Heathrow Airport, usually Europe’s busiest airport, is cutting costs by cancelling executive pay, freezing recruitment and reviewing all capital projects.

Air Canada has more than 5,100 excess cabin crew after cutting its flying schedule and plans to start notifying them they will be laid off at least temporarily, its flight attendants union said.

The airline said it had begun talks with unions about temporary lay-offs but did not have final numbers yet.

On Friday, Cathay Pacific Airways said it would slash nearly all passenger capacity as new government curbs make travel more difficult.

Its low-cost carrier, HK Express, will suspend operations from Monday until April 30, bringing forward plans to put employees on unpaid leave.

To preserve cash, airlines are also cutting executive pay, suspending dividends, selling planes, and flying cargo on empty passenger jets. This has led to surging cargo rates due to high demand – the only bright spot in the industry.

American Airlines said on Thursday it would use some passenger jets to move cargo between the United States and Europe, its first scheduled cargo-only flights since 1984 when it retired the last of its 747 freighters.

In the Asia-Pacific, Qantas, Cathay, Korean Air Lines are also operating some flights with empty seats but bellies full of cargo.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow