Since we resumed our weekly aviation updates we have received a lot of feedback and requests for further areas of coverage. As a result, we will be adding a business development segment but please appreciate that some of our projects are client confidential and we will require disclosures and signing of NDAs before we can share any detailed information. That said, we have no issues in sharing our pipeline of projects should some of you be interested in working with us.
As ever, should you wish us to initiate coverage in any area of interest or would like to contribute to the weekly updates, kindly get intouch with us at commercial@dreaviationconsulting.com
we also welcome any feedback to any of our topics covered and would appreciate your insights.
Whilst we bring you news and analysis of the happenings in the industry we give you a leading insight on our opinions and advisory on specific topics and we hope that you find these useful in your day to day role and decision making process.
Africa
After 4 months of self grounding for restructuring, Aero Contractors have announced that they will resume operations on the 5th December. W have also learnt that the carrier plan to resume regional West African operation in Quarter 1 of 2023. The carrier will come back to the market with 6 aircraft and no doubt Nigeria's oldest carrier has been missed from the skies. The industry question marks remain as to whether the carrier can sustain its operations through better management of the company, time will tell but we wish Aero all the best with their relaunch.
SAA launch 3 new routes as demand continues to recover post the pandemic, the move coincides with increased seasonal demand; the routes are Johannesburg to Windhoek, Victoria falls and Ggeberha. We understand the routes will be operated by an A320. it is encouraging to see SAA continue to recover from the pandemic and financial restructuring, whilst the move is welcomed, but SAA still has a long way to go.
Malawi Airlines secures a B737-800 from Ethiopian Airlines and will deploy the aircraft on the Lilongwe, Blantyre and Johannesburg routes.
An Air Tanzania aircraft has been seized in the Netherlands over a $165m legal dispute. Details are limited at this stage.
"GhanaAirlines" has been confirmed as the name of the soon the be relaunched Ghanaian home based carrier. It is believed that it will be managed by Ashanti Airlines and will launch in 2023. No further details have been disclosed by the Ghanaian government, what could possibly go wrong?
Airfares continue to rise in local currency terms across Africa, here dre aviation Managing Partner, Sukhjinder Mann, contributes to a Ghana TV3 segment covering the topic:
Europe
Lufthansa to relaunch the first of its A380s, the first aircraft is to be released from preservation as passenger demand continues to recover post the Covid pandemic.
2 of Europe's leading low cost carriers, Wizz Air and Ryanair, have confirmed that passenger demand has now surpassed pre pandemic levels. The move is welcomed in the face of roaring inflation in Europe which may be one of the reasons that passengers have switched from traditional carriers to their lower priced competitors. Should this scenario of high inflation continue it will certainly play int the hands of the LCCs.
Asia Pacific
Following the Tata restructuring of its airline portfolio, it appears that Singapore Airlines will end up having a 25.1% stake in Air India, this as the Tata Group seek to release synergies by merging Air India with Vistara. We support the move as it has demonstrated that the Tatas are serious about building a sustainable and profitable airline through consolidating their assets.
Thai Airways and Singapore Airlines sign an MOU to enhance codeshares and release further synergies and network penetration whist improving their customer experience and route availability.
Middle East
We are hearing that Etihad may bring back their A380s in 2023 as the demand for global air travel continues its bounce back. Etihad arguably have one of the best premium services available in the market and bringing back "The Residence" will be a sure hit with the well healed premium clients.
The Americas
American Airlines are closing their San Francisco crew base and are asking staff to either relocate or to leave the company, the move affects 400 cabin crew. The move comes as American Airlines continue to adapt to market dynamics.
Delta Airlines pilots are close to securing a 34% payrise over the next 3 years. The pilots will vote on the offer in the next few weeks and if accepted, the move could push pilots with other carriers to follow suit. Naturally, this increases carriers costs and will have to be offset by either fare increases or cuts in other areas. The result of the pilot ballot is being closely watched by the industry as the ripple effect will be felt worldwide
It is reported that United are close to signing a contract with Boeing for 10 Dreamliners as part of their fleet renewal programme.
Hawaiian Airlines will launch the Honolulu to Rarotonga route in May 2023 with a weekly service.
Canada and Colombia reached a free for all air transport agreement whereby carriers from both countries can fly as many flights to as many destinations as they wish, this supersedes the previous bilateral cap of 14 commercial flights a week and 14 cargo flights week. There are no restrictions on destinations or route pairings that can be served by either country's carriers. This is one of the most progressive agreement restructures that we have seen and no doubt will open up trade considerably between the 2 counties, in addition it will a financial boost for the aviation ecosystem in both countries. More of the same please - globally.
Current Business Development Opportunities with dre aviation:
We are currently trying to source two (2) B737-500 or (2) B737-800 or (2) A320 aircraft for a private client, should you wish the discuss the opportunity please get in touch.
dre aviation set to launch Aviation Insurance Services for it's esteemed aviation clients in Africa via our partners registered with the Lloyds of London insurance market. This will add another bow to the SMARTER PROCUREMENT programme launched by dre aviation whereby we help airlines cut their cost base by buying smarter via us. Details will be announced in the coming week.
We are looking for Country Managers in Zambia and Namibia, interested industry colleagues please get intouch via Linkedin.
We are now able to offer Cargo GSA solutions in the USA, any party wishing to partner in marketing these services should get intouch.
dre aviation have been awarded a private client airline due diligence exercise in West Africa, as a result, we are sourcing an aviation anlayst to join the team. He/she must have operated in the industry for atleast 20 years and must have deep practical knowledge of commercial aviation, the role involves travel across the region so a flexible diary is essential. Experience of financial business cases and financial planning would be a distinct advantage.
Wishing you a good week ahead.
dre aviation
London
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