The US and UK have agreed an Open Skies pact that will allow them to continue liberalised air services after the UK leaves the EU in March 2019. Announcing the new agreement late Nov 28, UK Transport secretary Chris Grayling said it would ensure the UK “remains one of the world’s leading aviation hubs after Brexit for both travellers and businesses.” The UK Department for Transport said the new agreement “will guarantee the continuation of the vital transatlantic routes used by tens of millions of passengers a year, ensuring people can continue to travel easily between the UK and US and maintaining choice and good value travel. It also protects our GBP50b trading relationship between our two countries that is supported by air travel.” However, there is much less certainty about how and when the UK will replace its air service rights with other EU countries. <br/>
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Seattle-Tacoma International is among the nation's major airports that are spending US$105b to upgrade facilities between now and 2021 amid projections that passenger traffic will double in the next 2 decades, a new report says. "Airports are expanding and refurbishing their buildings, runways and access to be able to handle future growth," says the report by Cowen and Company airline analyst Helane Becke. Becker and her team estimate that airline traffic "will double over the next 12 to 15 years, with about half of that growth focused on international markets." "The construction will add to airline costs, and this will need to be addressed through higher fares," the Cowen analysts added. "With operating costs at major airports increasing, we fully expect the traveling public to bear the brunt of the expected increases." <br/>
The global airline industry is expected to generate nearly US$93b (E82b) in ancillary revenues this year, a new study claims. The total would represent a 312% rise in revenues from non-air fare sources in the past 8 years. “Nearly $93b in revenue indicates that good merchandisers are selling products desired by a vast number of customers”, said Aileen McCormack, CCO at software firm CarTrawler, which compiled the study on behalf of IdeaWorks. In July, IdeaWorks and CarTrawler reported that the world’s 10 leading airlines pulled in a combined E25.4b from ancillary revenues last year, up 6% on 2016, further underlining the importance of non-air fare income streams for the industry. According to CarTrawler, $64.8b worth of ancillary revenues this year will come directly from a la carte items. <br/>
IATA CE and DG Alexandre de Juniac called on African govts to lower taxes and fees on aviation, calling the continent “an expensive place for airlines to do business.” While the global average profit per passenger is US$7.80, African airlines lose $1.55 for every passenger carried. Aside from the burden of high fees and taxes, de Juniac cited jet fuel costs, which are 35% higher than the rest of the world, as well as user charges that are double the industry average, as obstacles preventing the region from enhancing airline competitiveness. “Too many African govts view aviation as a luxury rather than a necessity. We must change that perception,” de Juniac said. “The value of aviation for govts is not in the tax receipts that can be squeezed from it. It is in the economic growth and job creation that aviation supports.” <br/>
Ethiopia has overtaken Dubai as a conduit for long-haul passengers to Africa, highlighting the success of the state airline's expansion drive and the reforms of its new prime minister. Travel consultancy ForwardKeys said Wednesday Addis Ababa airport had increased the number of international transfer passengers to sub-Saharan Africa for 5 years in a row, and in 2018 had surpassed Dubai, one of the world's busiest airports, as the transfer hub for long-haul travel to the region. Analysing data from travel booking systems that record 17m flight bookings a day, ForwardKeys found the number of long-haul transfers to sub-Saharan Africa via Addis Ababa jumped by 85% from 2013 to 2017. Transfers via Dubai over the same period rose by 31%. <br/>