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AIRLINE NEWS IATA: International pax up 7.9% in 2017 Asia Pacific carriers’ annual demand


grew by 9.4% year-on-year, underpinned by robust regional economic expansion and an increase in route options for travellers. Meanwhile, Latin American airlines’


traffic climbed by 9.3%, its swiftest since 2011, but this was curtailed towards the end of the year due to the severe hurricane season that hit travel to the US. North American carriers’ full-year traffic


The International Air Transport Association (IATA) has reported that global passenger traffic grew by 7.6% in 2017 – a result significantly higher than the 10-year average annual growth rate of +5.5%. IATA tells TRBusiness that airlines carried


4.1bn passengers in 2017, however the association is yet to publish seperate figures for domestic and international passengers. The latter grew by 7.9% year-on-year. All regions posted year-on-year increases in international passenger traffic demand, spearheaded by Asia Pacific and Latin America.


rose by 4.8% year-on-year with growth in outbound passenger demand supported by ‘the comparatively robust economic backdrop’, notes IATA. Elsewhere, European airlines grew their


international traffic by 8.2% year-on-year due to buoyant economic conditions, while African carriers’ traffic rose by 7.5%. However, Middle Eastern carriers


recorded a slowdown in annual growth, in part due to US President Donald J. Trump’s proposed travel bans to certain areas in North America and the temporary ban on in-cabin electronic devices. “2017 got off to a very strong start and


largely stayed that way throughout the year, sustained by a broad-based pick-up in economic conditions. While the underlying


Gateretail explores home delivery options


Gateretail Managing Director John Moriarty has told TRBusiness that emphasis on personalisation, premiumisation and pre-ordering will dictate the future success of inflight retail. In an exclusive interview this issue (see


pg 26) Moriarty admits the traditional onboard duty free model needs to evolve to meet the needs of the traveller. He credits the success of Gate Retail’s


pre-flight order business as one example where the company is staying ahead of the curve when it comes to retailing. “Gate Retail’s capabilities drive people


towards a pre-flight online portal for goods that are delivered during their trip,” he said. “While this pre-order business continues


to grow, Gateretail is also looking at expanding its offers to other channels including home delivery options.” An increased focus on personalisation,


premiumisation and pre-ordering, he suggests, will provide passengers wth a reason to purchase, particularly if they feel there is something different on offer and it isn’t resticted to certain geographical territories. “There are obviously specific markets


that are very strong, like APAC, and there’s also great potential in Latin America,” added Moriarty. “Europe still has it as well. Certain


pockets are strong due to high taxes, but as a general rule there’s potential in each of the markets mentioned, it’s just the offering that needs to be developed.”


FEBRUARY 2018 www.scorpioworldwide.com TRBUSINESS 11


economic outlook remains supportive in 2018, rising cost inputs, most notably fuel, suggest we are unlikely to see the same degree of demand stimulation from lower fares that occurred in the first part of 2017,” said Alexandre de Juniac, IATA’s Director General and CEO.


SIA ‘digital wallet’ swaps air miles for purchases


Singapore Airlines Group (SIA) is set to launch a new ‘digital wallet’ allowing frequent flyers the chance to trade air miles for retail purchases. Billed as


a ‘world-first blockchain-


based airline loyalty’ scheme, the new KrisFlyer digital wallet app can be used for point-of-sale transactions at participating retail merchants. The new technology uses a SIA-


owned private blockchain involving only merchants and partners and expects to roll out in around six months’ time. KrisFlyer will begin signing up retail


merchants in Singapore following a successful exercise carried out between KPMG Digital Village and Microsoft. “This groundbreaking development


in which we will be using blockchain technology to ‘digitalise’ KrisFlyer miles is a demonstration of the investment we are making to significantly enhance the digital side of our business for the benefit of our customers,” said Singapore Airlines CEO Goh Choon Phong. “It is in line with our recently unveiled


Digital Innovation Blueprint, under which we aim to be the world’s leading digital airline.”


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