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Update NEWS


NEWS


LCCs boost growth as global passenger tally tops 1 billion


Low-cost carriers (LCCs) are helping to drive global growth as sector passenger numbers have passed the one billion milestone in 2016. Figures released by the


International Civil Aviation Organisation (ICAO) show that about 28% of air travellers chose the no-frills option. Regionally, the figure peaked in Europe at 32%, followed by Asia/Pacific at 31%, and North America at 25%. ICAO said the growth, which


was particularly strong in countries with emerging economies, was instrumental in driving a 6% increase in passengers carried on scheduled services to 3.7 billion in 2016. Falling oil prices leading to lower


airfares also helped to drive the boost in passenger numbers. The reduced cost meant fuel only accounted for a fifth of the industry’s operating costs in 2016, compared with a third in 2015. However, the industry is still being affected by a number of other factors, including sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade and diminishing capital flows. Despite this, ICAO said aviation


Dispute holds up Airbus delivery of Emirates A380s


Airbus has announced delays for the delivery of 12 Airbus A380 aircraft to its major customer Emirates, following a row between the airline and engine manufacturer Rolls-Royce. Six aircraft that were expected


ICAO figures show 28% of air travellers chose no-frills option in 2016


globally was expected to end 2016 with another record operating profit of around $60 billion and an operating margin of 8%. This was particularly driven by


North American carriers, where more than a third of profits are expected to originate. It is also an increase on the $58 billion operating profit recorded in 2015. The strong results coupled with


improving economic conditions forecast by the World Bank meant ICAO predicted traffic growth and that air carrier profitability momentum will continue in 2017.


Birmingham Airport tops punctuality league


Birmingham Airport was the most punctual in the world in 2016, a new study has found. OAG’s 2016 Punctuality League


awarded the facility, which was in the 5-10 million departing seats section, an on-time punctuality (OTP) score of 91.28%.


Nor was it the only UK airport


to make the top three globally. Newcastle International Airport, which was in the small airports category with 2.5 million to 5 million seats, was in second place having scored 90.94%. Third-placed Surabaya Juanda International Airport was the only


to be delivered in 2017 will now be delayed until 2018, with a further six subsequently delayed until 2019.


The delay stems from a


disagreement between the superjumbo’s largest customer and the provider of its Trent 900 engines, which had suffered from “technical issues”, according to Emirates president Tim Clark. When the row broke out at the end of 2016, Clark said: “We want the engines as promised in the contract. “We have made no hard and fast decisions about fleeting drawdown. We’re hoping to get a resolution to this very quickly.” A Rolls-Royce spokesman said:


“We are working with Emirates and Airbus to meet the planned entry into service of the Trent-powered A380s within the Emirates fleet.”


other airport to score more than 90% in its OTP test – it achieved 90.3%. It was competing in the large category with somewhere between 10 million and 20 million departing seats. The only other category was the major category with more than 20 million departing seats per annum. This was won by Tokyo Haneda Airport, which scored 87.49%.


OAG’s John


Grant (left) with Birmingham airport CEO Paul Kehoe


Meanwhile, the mainline airline category was won by Hawaiian Airlines with an OTP score of 89.87%. The low-cost carriers chart


was topped by Monarch Airlines, which scored 85.67%.


routesonline.com ROUTES NEWS 2017 ISSUE 1 7


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