The International Air Transport Association (IATA) announced global scheduled international traffic data for March. Compared to the same month in the previous year, passenger demand increased 5.8% with load factors at 77.7%. Freight traffic grew 3.2%.
March passenger growth is positively skewed by the Easter holiday period which was in April of the previous year. Adjusting for this distortion, real traffic growth in March was 4%. The slowdown in the demand growth continues the sharp downward trend which began in December 2007 as the impact of the US credit crunch began to be felt in the airline industry.
International passenger load factors were equally skewed. When adjusted to take into account artificially high utilisation over the Easter period, the March load factor was 76.1%. While still high, this is 1.7 percentage points lower than the 77.8% recorded for the same month in 2007. This fall indicated that the slowing of demand occurred faster than airlines could cut capacity.
International freight growth of 3.2% remains sluggish and well below the 4.3% growth recorded in 2007.
“Traffic only tells a part of the story. Astronomical oil prices are hitting hard. And the buffer of an expanding economy has disappeared. The fortunes of the industry have taken a major turn for the worse,” said Giovanni Bisignani, IATA’s Director General and CEO.
Regional differences in passenger traffic growth are significant:
* As North American carriers shift traffic from low-yielding domestic markets, their international traffic grew by 6.3% in March. The impact of high valued Euro saw U.S. carriers capitalise on the North Atlantic with a 10% growth in traffic while European carriers’ operations in the same area contracted by 2%. Overall European carrier passenger traffic grew by 3.7%.
* The slowdown in Asia-Pacific carrier traffic to 4.3% is significant in that the region’s booming economies were expected to immunise them from the US slowdown.
* African carrier traffic contracted 4.3% as a result of a failed expansion push into Middle East and Asia markets in the first part of the previous year.
* Middle East carriers saw a double-digit increase of 15.4% reflecting the expanding economies in the region. But even this is a significant downward step from the 20.4% recorded in 2007.
* Latin American carrier traffic continues to recover from the restructuring in 2007, boosted by strong demand for commodities produced in the region. The 19.7% growth experienced is well above the 0.5% recorded for the same time period last year.
“In the face of such dramatic shifts in the global economy, consolidation is critical. The proposed consolidation in the U.S. is good news. But it makes no sense that consolidation is limited to domestic partners. This is a global industry that needs to be run like a global business. The U.S.-EU Open Sky Agreement second stage talks that open in May must deliver a modern approach to ownership rules,” said Bisignani.

Following the successful start of operations in Cape Town, Emirates Airline will advance its presence in South Africa with the introduction of daily flights to Durban, effective 1st December 2008.
The new service – Emirates’ third direct connection between Dubai and South Africa – underscores its commitment to the South African market, and comes close on the heels of the launch of its third-daily service to Johannesburg in 2007 and daily service to Cape Town in 2008.
Durban, Emirates 16th passenger destination in Africa, will accelerate the Dubai-based airline’s weekly capacity into the continent to 93 flights.
Tim Clark, President Emirates Airline noted: “Emirates is grateful to the Government of South Africa for granting us the permission to launch operations to Durban. I am confident the new service will foster greater business, tourism and cultural exchange, and prove an asset in the growth plans of Durban.”
“Our flights will provide travellers from key cities in Europe, the Indian-sub continent and Middle East a direct access to Durban and will strengthen inbound tourist arrivals. At the same time it will open up a direct link to over 90 global destinations for Durban’s outbound travellers who can now avoid travelling via Johannesburg.”
He added: “Africa is key to Emirates’ global network expansion strategy. We currently operate 86 flights per week to 15 African gateways and owing to the continent’s growing economy and escalating demand for air travel, these flights operate at robust seat factors of over 80 percent. Emirates will continue to spread its wings in the African skies.”
Emirates will serve Durban with an Airbus A330-200 aircraft offering 27 Business Class and 251 Economy Class seats. Onboard passengers will enjoy multi-course meals with ethnic dishes prepared by master chefs; attentive service from the airline’s multi-lingual cabin crew; personal entertainment systems; and quieter and more restful cabins equipped with wider seats.
The wide-bodied aircraft also offers almost 14 tonnes of belly-hold cargo capacity that will facilitate efficient and timely imports of chemicals, petroleum products, and foodstuff from Germany, United Kingdom, China and the United States of America.
Metals, minerals, machinery, equipment, agricultural and dairy products figure prominently in South Africa’s list of exported commodities. Emirates SkyCargo is ideally placed to help Durban strengthen links with its existing trade partners and kick-start exports to newer markets.
The Dubai-Durban flight will cover a distance of over 6,600 kms in 8 hours 40 minutes.
The new addition brings Emirates frequencies to South Africa to 35 flights per week.

Flying has just become even simpler for Emirates passengers following the introduction of an innovative new facility at the award winning carrier’s Dubai International Airport hub. From now on Emirates passengers carrying only hand luggage can bypass check-in and proceed directly through passport control and security to their boarding gate.
This major development has been facilitated by the introduction of a new, home-printed e-boarding pass (eBP). Passengers with check-in baggage may also use the eBP, in conjunction with the "Quick Bag drop" counters. Dale Griffith, Divisional Senior Vice President Emirates Airport Services, said: “Emirates is one of the first airlines in the Middle East to launch eBPs. The objective of this initiative is to provide customers with more control of their trip, more flexibility and value-added services that enhance the journey. “By printing an eBP at home, customers reduce or eliminate standing in queues at the airport. By automating processes we are able to bring about efficiencies that will provide a seamless customer passage starting at home, continuing through the airport, and all the way to the aircraft.” The eBP was developed by Emirates Airport Services, and is launched in collaboration with Dubai Police, Immigration and Security. It carries an IATA-approved 2D barcode which can be read at all of the boarding gates on the network that are equipped with a scanner, enabling customers to be accepted for their onward journey. Airports without scanners can still board passengers holding an eBP using the Departure Control System, as the required data is also printed on the eBP. Alternately, airport staff can re-issue a traditional boarding pass by accessing the onward flight information, which is printed on the eBP. eBPs, along with RFID Baggage trials, are initiatives that are led by Emirates Airport Services to bring about improvements in the way Emirates cares for its customers.

Readers of business magazine Capital have voted Austrian Airlines number one in the categories of Service and Catering on European scheduled routes. The result is further confirmation of the success of Austrian’s quality and service offensive, showing that their innovative products and services are being noticed by its customers – and being rewarded accordingly.

Qatar Airways Chief Executive Officer Akbar Al Baker today spoke of the airline’s aggressive expansion plans over the next few years highlighting orders for more than 200 aircraft worth over US$30 billion.
The national carrier of the State of Qatar is pursuing an ambitious growth strategy in line with the country’s dynamic economic boom where huge infrastructure development projects are fuelling the growth.
Addressing international media at Arabian Travel Market (ATM), the Middle East’s leading travel trade show being held in Dubai this week, Al Baker said the airline’s aircraft orders would help facilitate the country’s economic drive forward and turn Qatar into both a leading regional and global aviation hub.
He said a new wave of aircraft deliveries begins this summer with Qatar Airways third Boeing 777 joining the carrier’s 62-strong fleet.
From November this year, Qatar Airways takes delivery of the first of its Long Range Boeing 777-200 aircraft capable of flying to virtually any key city in the world non-stop from Doha. The first Boeing 777-200 will be introduced on the Doha-Houston route from November 10 with a non-stop flying time of 17 hours.
With impressive outstanding orders, including 80 of Airbus new-generation A350s, five twin-deck A380s, 60 of Boeing’s new 787 Dreamliners and 30 Boeing 777s, Qatar Airways fleet expansion will take it well into the next decade.
A brand new international airport under construction in Doha will help facilitate the growth with the first phase slated to open in 2010.
Qatar Airways Chief Executive Officer Akbar Al Baker pictured at the airline's press conference during Arabian Travel Market in Dubai Qatar Airways currently has a diverse network of cities it serves across Europe, Middle East, Africa, Indian Subcontinent, Far East and North America.
Al Baker explained that Qatar Airways’s young fleet of Airbus and Boeing aircraft, which have an average age of just three years, will grow significantly to 70 by the end of 2008, rising further to 110 within five years. And he said that the number of global destinations in Qatar Airways’s international network, which currently stands at 82, will rise sharply over the next few years.
Our vision at Qatar Airways is simple to invest in, and maintain, a growing fleet of young and modern aircraft flying to key business and leisure destinations worldwide he said.
Our long range Boeing 777s will open up tremendous new opportunities for us from the end of 2008 with the aircraft capable of flying to all corners of the globe non-stop and provide our customers with a unique flying experience and ultimate levels of comfort.
Qatar’s strategic and geographical location in the heart of the Middle East presents us with excellent opportunities but more importantly, give the travelling public from the region and around the world excellent connections via our Doha hub.
Added Al Baker: The new generation Boeing 787s and Airbus A350s will create even more opportunities, opening up new medium- and long-haul routes with greater operational efficiency.
Qatar Airways currently has a diverse network of cities it serves across Europe, Middle East, Africa, Indian Subcontinent, Far East and North America.
Al Baker highlighted this year’s route expansion to include three new destinations. Having launched scheduled flights from Doha to the southern Chinese city of Guangzhou at the end of March with a fifth weekly frequency introduced only last week Qatar Airways now operates 21 services a week across China, covering also Beijing, Shanghai and Hong Kong.
Beginning June 15, Qatar Airways launches daily services between Doha and the south-west Indian coastal city of Kozhikode (formerly known as Calicut). Kozhikode will be the airline’s ninth Indian destination taking capacity across India to 58 weekly services.
And starting November 10, Qatar Airways launches its third US destination with direct non-stop flights to Houston, initially with three services a week, rising to daily in December 2008.

The International Air Transport Association (IATA) released its 44th annual Safety Report today. The report showed that the 2007 global accident rate of 0.75 hull losses for every million flights by Western-built jet aircraft was slightly higher than the 0.65 rate recorded in 2006. This was largely the result of tragic accidents in Africa, Indonesia and to some extent Brazil. IATA member airlines performed better than the industry average with an accident rate of 0.68 hull losses per million flights.
The number of global fatalities declined 19% from 855 to 692, even as passenger numbers increased by 6% to over 2.2 billion passengers in 2007. In absolute numbers, there were 100 accidents in 2007 (57 jet, 43 turboprop) compared with 77 accidents in 2006 (46 jet, 31 turboprop).
“Air travel is the safest mode of transportation. In the ten years from 1998, the accident rate was reduced by almost half - from 1.34 accidents per million flights to 0.75. And the number of fatalities dropped significantly in 2007. That’s good news. But our goal is always to do better: zero fatalities and zero accidents,” said Giovanni Bisignani, IATA’s Director General and CEO.
The IATA Operational Safety Audit (IOSA) is the global standard for airline safety management and a key tool in driving further improvements in global safety. All IATA carriers are required to complete audits and close all findings to join the IOSA Registry by the end of 2008. “Making IOSA a condition of IATA membership is a strong commitment by the industry to raise the bar on safety even higher. Our Partnership for Safety programmes are in place to help our members meet the standards and join the Registry. Safety is our number one priority and starting in 2008, IATA will finance the costs of the IOSA audits for its members. The results are transparent on www.iata.org/registry for all to see. And we will be tough. By the end of the year, carriers are either on the Registry, or they are out of IATA,” said Bisignani.
Regional Results: Regional accident rates varied. Russia and the CIS had zero accidents in 2007, following a disastrous year in 2006. At 0.09 and 0.29 accidents per million flights, North America and Europe had hull-loss rates significantly better than the global average. A spate of accidents in Indonesia pushed the Asia Pacific accident rate to 2.76 hull losses per million flights. Latin American accident rate was 1.61 hull losses per million flights. IATA is working with the Brazilian government on a comprehensive programme to improve safety - from IOSA to infrastructure improvements.
Africa had the worst record at 4.09 hull losses per million flights. “While this is an improvement over last year, it is still six times less safe to fly in Africa than the rest of the world. IATA is working side-by-side with our African members to bring them up to IOSA standards. And we just announced a US$3.7 million programme to give up to 30 African carriers access to IATA’s Flight Data Analysis service for a three-year period,” said Bisignani. Contributing Factors: Almost half (48%) of the year’s accidents took place during landing. The majority of these accidents involved a runway excursion. Many of these accidents could have been prevented by the initiation of a timely go-around. IATA, in cooperation with the Flight Safety Foundation, is developing a toolkit that will address the issues linked to runway safety enhancement, including the prevention of runway excursions.
Almost 20% of all accidents in 2007 related to ground damage. Lack of standardisation can contribute to ground handling activities that result in damage to aircraft. IATA developed the IATA Safety Audit for Ground Operations (ISAGO) programme to drastically reduce aircraft damage and personal injuries in the ground environment. “Ground damage is a US$4 billion cost to the industry. The launch of the first global standards for ground safety with ISAGO will improve safety, cut costs and reduce redundant audits,” said Bisignani.
Almost half of the accidents in 2007 were linked to a technical issue; maintenance events contributed to almost 20% of all occurrences last year. IATA is revising its safety strategy to encompass maintenance activities and Safety Management System implementation for maintenance organisations.