The sudden Russian invasion of Ukraine has triggered countless numbers of overflight bans, which has had a tremendous impact on the balance sheet of most carriers. The strangle trends on the civil aviation sector in Russia and Europe are getting stronger by the day.
While the overflight bans imposed by a still-growing group of nations have mostly affected Russian airlines. Russia's retaliatory overflight bans have had a distinct and adverse impact on the flight schedules of European airlines as well.
The rapidly increasing cost of air turbine fuel (ATF) has compounded the adverse cost and traffic effects of longer flight routings and flight times on European carriers. With crude oil prices trending upward as the US and UK ban imports of petroleum products from Russia, reaching a 13-year high overnight on March 7, and ATF hitting a $3.61 per gallon spot price in New York, there is no guarantee that in the near future jet fuel prices won't exceed the $3.89 all-time peak they experienced in 2008.
Meanwhile, gasoline prices in America have risen through $4 a gallon and are higher still in Europe. Not only is there a danger in a business environment where leisure traffic is predominant and fares are low, airlines will soon have to try to levy an extra 14 per cent to 20 per cent surcharge merely to recoup their increased fuel costs, but the increased costs of gasoline could adversely affect air traffic.
Ultra-low-cost carriers such as Ryanair, Easyjet, Wizzair, Frontier Airlines, Spirit Airlines, and Allegiant Travel appear better placed than the big ‘legacy' mainstream carriers to handle the forces pressuring their businesses in an environment of rising petroleum prices. Their overhead costs are lower than those of the hub carriers, their business models allow for stripped-down fares, and their non-hub route networks are less exposed to lost business traffic.
Denne historien er fra March 2022-utgaven av Cruising Heights.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra March 2022-utgaven av Cruising Heights.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Jets, Tech, And Green Goals
The key themes at the Farnborough International Airshow 2024 revolved around innovation and sustainability. Sizeable aircraft orders, advancements in eVTOL technology, and a strong commitment to environmental goals underscore an industry that is not only rebounding from past challenges but also setting the stage for a more sustainable and technologically advanced future, reports ATUL CHANDRA.
FREIGHT IN FLIGHT
In 2023, Indian airports handled over 3.15 million metric tonnes of cargo, with international freight dominating. As the sector aims to meet the government's ambitious annual target of 10 million metric tonnes (MMT) by 2030, this goal will require dedicated freighter aircraft, technological integration, infrastructure development, and regulatory improvements, among other things. By JAIDEEP MIRCHANDANI, Chairman, Sky One
ELEVATING PASSENGER EXPERIENCES
Panasonic Avionics Corporation is setting new standards in in-flight entertainment and connectivity (IFEC) with the launch of its state-of-the-art software design and development facility in Pune, highlights
CAUGHT IN PAPER JAM
Despite rapid digital advancements in passenger air travel with the airline market expected to surpass $35 billion by end of this decade, the air cargo industry remains bogged down by outdated legacy systems, impeding progress in efficiency and real-time tracking. A special report by
PITCHING FOR SUPPORT
India's air cargo industry is gearing up for a major transformation, aiming to nearly triple its capacity by 2030. Current infrastructure handles about 6.5 million tonnes, but meeting future goals will require significant investments to expand capacity, streamline operations, and adopt cutting-edge technologies. Industry leaders at a recent ACFI Annual Conclave emphasised the need for strong government support to overcome challenges, urging policymakers to address operational constraints and improve connectivity, reports
BATTLE FOR THE SKIES
As India's international air traffic experiences significant growth over the past few decades, the competition between Air India and IndiGo intensifies. Vistara's merger within Air India and the significant aircraft orders position the combined entity as a formidable player, while IndiGo's ambitious expansion plans and international focus set the stage for a competitive future, analyses
"We Aim to Bridge the Training Gap in Indian Aviation"
In a candid conversation with CRUISING HEIGHTS, KHUSHBEG JATTANA, General Manager India of Simaero, discusses the strategic timing of Simaero's entry into the Indian aviation market. He addresses the challenges posed by existing pilot training programmes from major airlines like Air India and IndiGo, and elaborates on Simaero's plans to complement these efforts with state-of-the-art training solutions. Jattana also sheds light on the potential growth in the South Asian region and the company's vision for the future.
POWERING UP
Urban Air Mobility providers are accelerating their eVTOL development programmes, reports
Transforming Air Traffic Control Training: CAE's Cutting-Edge Approach
In this interview, MARIE-CHRISTINE CLOUTIER, CAE's Vice-President of Performance, Strategy, and Marketing, discusses CAE's air traffic control training program. Highlighting strategic partnerships, advanced technologies, and global initiatives, the interview reveals how CAE addresses the growing demand for skilled air traffic controllers and flight service specialists. From their dedicated Montreal facility to expanding efforts across the globe, CAE is committed to providing tailored, state-of-the-art training solutions for the aviation industry's future.
POWERING A GREEN FUTURE
FIA 2024 witnessed a growing order book for aircraft engine manufacturers and provided important insights into the development of sustainable powerplants.
