Atlas of the Sky from the European Commission

The most comprehensive data sources for the global airline and airport industries usually come at considerable cost but there are some good free sources of information available.

One such source is the online Atlas of the Sky provided by the European Commission.

Australian Productivity Commission releases draft report on airport regulation

On 22 August 2011 the Australian Productivity Commission released a draft report on the Economic Regulation of Airport Services. The final date for submissions is 23 September 2011.

Australian draft report on the Regulation of Airport Services

On 22 August 2011 the Australian Productivity Commission released a draft report on the Economic Regulation of Airport Services.

An Issues paper was issued back in January 2011.

The Commission's final report to the government is scheduled to be made in December 2011.

"Aerotropolis - The Way We'll Live Next" by John Kasarda and Greg Lindsay

I had expected that this book would be more of an academic work than what it is - largely one of business journalism - but it is well worth a read nonetheless.

Aerotropolis gives a good picture of the role that civil aviation is now playing in globalisation, and how airports have become central to modern economies and urban development.

Featured in the book are developments around:

• Incheon (ICN) - where a new city, Songdo, is being built
• Los Angeles (LAX) - where the airport had not been supported
• Dulles (IAD) - near Washington DC in a wealthy and growing part of Virginia
• Chicago (ORD) - where there were plans for an additional airport
• Memphis (MEM) and Louisville (SDF) - hubs for FedEx and UPS respectively
• Dallas Fort Worth (DFW) - hub for American Airlines
• Detroit (DTW) - second hub for Delta with links to Asia and looking to build a Detroit Region Aerotropolis
• Denver (DEN) - where a completely new airport was opened
• Amsterdam (AMS) - with its associated flower market
• Dubai (DXB), Abu Dhabi (AUH) and Doha (DOH) - with their competing global ambitions
• Bangkok (BKK) - where a new airport has been built on a swamp
• Hong Kong (HKG), Guangzhou (CAN) and Shenzhen (SZX) - vital to the success of manufacturing in the Pearl River Delta

For me, the book's coverage of developments in China was the most interesting, perhaps because it was the least familiar.

Memorable concepts from the book include:

• "Kasarda's Law of Connectivity: every technology meant to circumvent distances electronically ... will only stoke our desire to transverse [distance] ourselves."
• "Individual companies don't compete. Supply chains compete. Networks and systems compete."
• Marchetti's Constant

One piece of advice that is actually included late in the book. Use Google Earth while reading "Aerotropolis" to get an idea of the lie of the land around the airports being referred to.

Reviews of the book have appeared in:

• Kirkus Reviews 15 December 2010
• Bloomberg Businessweek 24 February 2011
• FT Magazine 25 February 2011
• Wall Street Journal 2 March 2011
• New York Times 4 March 2011
• The Independent 4 March 2011
• The Telegraph 13 March 2011
• The Guardian 19 March 2011
• Barnes and Noble Review 22 March 2011
• The Scotsman 27 March 2011
• The Enlightened Economist 28 April 2011
• London Review of Books 28 April 2011 
• History Books Review 27 May 2011
• Los Angeles Review of Books 30 May 2011

It is clear that civil aviation in general and the future that Kasarda outlines have their sceptics and this book is somewhat provocative.

An earlier 1 July 2006 article, Rise of the Aerotropolis, on the concept by Greg Lindsay appeared in Fast Company.

Four additional airlines operating to New Zealand

In just the last four months four international airlines commenced operations to New Zealand and one started code sharing here. Well actually the story is a little more complicated than that.

China Airlines (CI) from Taiwan recommenced services after a decade. Its operation to Auckland (AKL) from Taipei (TPE) via Brisbane (BNE) started on 1 January 2011 (see previous post).

Jetstar Asia Airways (3K) from Singapore (SIN) started operating to AKL on 18 March 2011 in direct competition with Singapore Airlines (SQ) (see previous post). This is only the third long-haul route to New Zealand to have such direct competition on the same sector - the others are AKL-LAX (NZ and QF) and AKL-HKG (NZ and CX). Jetstar Asia is actually wet-leasing VH registered aircraft from Qantas subsidiary Jetstar (JQ) in Australia. However, Jetstar had to obtain a Foreign Air Operator Certificate from the New Zealand Civil Aviation Authority because the operation does not qualify to be covered by the mutual recognition of safety certification regime between Australia and New Zealand (see previous post). The new service is being provided under the MALIAT.

AirAsia X (D7) commenced operating to Christchurch (CHC) from Kuala Lumpur (KUL) on 1 April 2011 (see previous post). The airline is to be commended for persisting with the launch date despite the devastating Christchurch earthquakes.

China Southern Airlines (CZ) commenced operating from Guangzhou (CAN) to AKL on 9 April 2011 (see previous post). This is a major new non-stop addition to the set of long-haul air routes to New Zealand. The inaugural flight was welcomed by the Prime Minister John Key (he is also Minister of Tourism). The new service is being jointly promoted by the airline and Tourism New Zealand.

The excellent MRC Aviation blog has photographs of the new operations in New Zealand by CI, 3K, D7 and CZ.

Finally, Virgin Atlantic Airways (VS) from the UK commenced code sharing to New Zealand on Air New Zealand (NZ) operations on 27 March 2011 (see Air New Zealand announcement dated 12 January 2011).

The next announced airline to recommence operating to New Zealand should be United Airlines (UA) in 2012 after it takes delivery of the B787 (see previous post). United already code shares to New Zealand.

I maintain a list of international airlines that serve (and those that have served) New Zealand on my homepages.

UAE adds to its fast growing list of air services agreements

In addition to that with France (see previous post), in recent months the United Arab Emirates has announced new or enhanced air services agreements with (dates are when a statement was posted):

Ecuador - 27 March 2011
Albania - 16 February 2011
Djibouti - 15 February 2011
Bosnia and Herzegovina - 19 January 2011
Portugal - 19 January 2011
Mauritania - 16 January 2011
Cambodia - 26 December 2010
Botswana - 24 October 2010
Burkina Faso, Guatemala and Vanuatu - 11 October 2010
Panama - 28 November 2010
Slovak Republic - 18 March 2010.

The UAE has also been negotiating with:

Colombia - 19 December 2010
Venezuela - 28 November 2010

This illustrates an interesting dilemma. How many countries and territories does it make sense for a country to establish air services relationships with? ICAO currently has 188 members known as "contracting states". One wonders how many of these members the UAE is aiming to negotiate air services agreements with and how many of these agreement will eventually be used to provide international air services.

If countries are ranked on the basis of the their true origin/destination (TOD) market size (the traditional basis for exchanging restricted traffic rights), the largest markets that New Zealand currently does not have air services agreements with are Israel and then Saudi Arabia. In terms of TOD traffic, some countries with which New Zealand has air services relationships are smaller than this in terms of market size and we continue to receive approaches from countries where the end-to-end market is tiny (less than 1,000 passengers per year). New Zealand now has around 49 air services relationships.

Even if the home market one might gain access to (and through) in an exchange of air services arrangements is small, how, for example, should one take into account the size of a potential partner's airline industry (see previous post) or traffic through its main international airport measured in terms of passenger numbers when considering whether to exchange air rights? According to Airports Council International in its 2010 ranking released on 15 March 2011 Dubai International Airport (DXB) was 13th in the world in terms of passenger movements and 8th in the world for air cargo.

On 3 January 2010 UAE Interact carried a report that quoted Saif Mohammed Al Suwaidi, Director-General of UAE's General Civil Aviation Authority (GCCA) as telling Khaleej Times, "We have already signed open sky agreements with about 45 countries in the Mena region and with some in Europe, North America and Asia. We are willing to sign open sky agreement with any country which is willing to reciprocate."

UK Department for Transport consulting on developing a sustainable framework for UK aviation

The 39-page scoping document for the consultation was published on 30 March 2011. It includes 49 questions on which feedback is sought.

The current UK government is working under severe fiscal constraints but all the same seems to be continuing in the tradition of a long line of UK administrations that arguably have had distinctly negative approaches towards the development of both civil and military aviation in the United Kingdom. Having said that the industry itself has allot to answer for.

AirAsia X to operate to Christchurch

On 29 October 2010 Christchurch Airport (CHC) announced that it has signed a deal that will see Malaysian airline AirAsia X (D7) commence operations from Kuala Lumpur (KUL) to New Zealand (subject to regulatory approvals). Whether this new direct route will be non stop or via Australia has yet to be announced. The Wings Down Under blog has a post on the story dated 29 October 2010.

New Zealand has a 1998 bilateral 'open skies' air services agreement with Malaysia (see media statement).

There has been speculation that the Malaysia government would not permit AirAsia X to compete directly with the Malaysia Airlines (MH) operations to Auckland (AKL). Singapore Airlines (SQ) already operates from South East Asia to Christchurch and is about to face competition to its Singapore-Auckland non-stop operations from Jetstar Asia (3K)(again subject to regulatory approvals)(see previous post).

Alliances approved, Japan-USA 'open skies' signed and Haneda open for international flights ...

... in that order.

On 6 October 2010 the US Department for Transportation announced that it proposed to approve alliances between American Airlines and Japan Airlines, and separately between United Airlines, Continental Airlines and All Nippon Airways (DOT-OST-2010-0059 refers).

On 25 October 2010 the US Department of State announced that 'open skies' air services arrangements had just been signed between Japan and the United States (see previous post).

On 31 October 2010 Mainichi Daily News reported that Haneda Airport (HND), close to central Tokyo, opened for international air services. Flightglobal reported that the first international flights by JAL and ANA actually departed on 30 October, just before midnight, and reported that the airport's new, fourth runway and international terminal opened on 21 October. International landing and takeoff slots at Haneda are very limited and have been sought by many countries.

The Airline Route web site currently has a section devoted to the new Haneda international services and links to a Ministry of Land, Infrastructure, Transport and Tourism document on the subject dated 23 October 2010 (in Japanese).

An update on New Zealand domestic air passenger numbers

Since I last graphed the numbers of passengers going through the three main domestic airport hubs in New Zealand (see previous post) there have been some major announcements. First there was the announcement that Pacific Blue is to withdraw from the New Zealand domestic market with effect from 18 October 2010 (see previous post).

Then on 31 August 2010 Air New Zealand announced that it would be increasing capacity on some of its provincial services from February 2011.

Finally on 16 September 2010 it was reported by Business Day that Jetstar would be adding two A320 aircraft to its New Zealand domestic operation, also from February. Before these new changes take effect then I have done more graphs of recent monthly domestic passenger numbers and year-on-year growth rates.

The Economist on Aviation in the Gulf

On 3 June 2010 The Economist published a briefing on Aviation in the Gulf "Rulers of the new silk road" and related editorial "Super-duper-connectors from the Gulf", focussing on the rise of network airlines Emirates, Etihad Airways and Qatar Airways, and their hub airports.

These airlines and airports, as well as enjoying the active support of their governments, are just about in the perfect geographic location for serving international air transport needs with ultra-long-haul aircraft. This is illustrated in a range chart centred on Dubai for the Boeing B777 family of aircraft.

On 10 June 2010 Airbus announced that Emirates had ordered a further 32 Airbus A380 aircraft to take its total order to 90 of these giant airliners. Jon Ostrower, in his excellent weblog FlightBlogger, on 10 June 2010 commented: "With RPK - the measurement of actual passenger traffic - set to double in the next 20 years, makes you wonder whether or not Emirates is hoping to carry it all themselves." Jon was joking wasn't he?

New Zealand's provincial international airports

Aviation pioneer isn't a phrase one hears very often these days with respect to recent aviation industry developments, but I would describe Ewan Wilson as one in the New Zealand context. In the mid-1990s with Kiwi Travel International Airlines (1995-1996) he established the first regular non-stop international services between Hamilton, Palmerston North, Dunedin and Australia. Serving on a point-to-point basis, in what was about to become in 1996 the Australia-New Zealand Single Aviation Market (SAM), Kiwi used leased aircraft from a number of international aircraft operators in what proved to be an ultimately undercapitalised venture when faced with competition from Air New Zealand's new no-frills subsidiary, Freedom Air (1996-2008).

In those days the global security environment was more benign and it was easier to establish border facilities at an airport for international flights, although the cost of processing passengers on a per-passenger basis compared with at New Zealand's three main international airports was very high.

The following graph illustrates the subsequent rise and fall on international passenger movements through Hamilton (HLZ), Palmerston North (PMR) and Dunedin airports (DUD), and the growing success of Queenstown (ZQN), which now has Air New Zealand, Jetstar, Pacific Blue and Qantas competing. The graph disguises the fact that HLZ temporarily lost its international services until Pacific Blue entered the market, while in the winter of 2009 for some weeks DUD only had one Air New Zealand international service per week. Rotorua (ROT) has only recently secure international services operated by Air New Zealand, while Invercargill (IVC) has for many years sought to attract international operations.

Again the data for the graph comes from Statistics NZ's excellent Infoshare.

The challenge for these provincial airports is that while they offer air passengers the convenience of non-stop point-to-point services, the frequency of international air services available is inevitably much greater at the three main airports and all these provincial airports enjoy good connecting domestic air links. In the case of HLZ there is the added challenge of competing with an improving road link between Hamilton and Auckland Airport.

Today Ewan Wilson is back in the travel industry operating escorted tours under the Grand Journey brand.

Recovery in New Zealand domestic air passenger numbers

Almost a year ago I posted graphs of domestic passenger numbers through AKL, WLG and CHC airports that clearly showed the impact of the start of domestic (cabotage) services by Pacific Blue and the subsequent impact of the economic recession. I have continued to update this data and the graphs now show growth returning to the New Zealand domestic market.

Recent news from: Air New Zealand on 25 May 2010 that it will be boosting domestic capacity by 3.8% for the Northern Winter 2010 schedule season; Jetstar, which is reported by the NZ Herald on 5 June 2010 to be adding a seventh A320 to its New Zealand-based fleet, and Pacific Blue which is reviewing its New Zealand domestic operation, however, suggests that the supply side of the New Zealand domestic air transport market will be in for some changes.

Australian Government releases National Aviation Policy Statement

On 16 November 2009 the Australian Government released its National Aviation Policy Statement white paper entitled "Flight Path to the Future" (see previous post). The document is large but individual chapters can be downloaded separately. Australian Transport Minister Albanese also delivered a related speech and issued a media release.

The announcement includes a proposal to relax the sub limits on foreign investment that apply under the Qantas Sale Act (see previous post) but retain the 49% overall limit.

A decision on the location of a second major airport for Sydney is deferred yet again. Ben Sandilands in his Plane Talking weblog is blunt in his comments heading his 16 December 2009 posting Aviation White Paper cripples Sydney.

Of potential direct relevance to New Zealand is an indication that Australia is prepared to grant to third countries fifth freedom access to the Tasman if their airlines serve smaller Australian cities.

Media coverage of the announcement includes that in the:

• Australian - Metal cutlery allowed back on planes under aviation reforms - Canberra to ease ownership rules for Qantas and Virgin Blue's V Australia
  
• Sydney Morning Herald - Master blaster Keating says that Badgerys is the only airport option - Development near airports to face new set of hurdles - Singapore edges closer to trans-Pacific rights

Airline responses have been released by Qantas (also a separate statement with respect to the Qantas Sale Act) and Virgin Blue.

United States reaches "open skies" arrangements with Japan

On 11 December 2009 the US Department of Transportation announced that the United States and Japan had initialed historic "open skies" arrangements after five rounds of negotiations (see previous post).

The text of the new arrangements (a Record of Discussions, Memorandum of Understanding and new route Annex) has been made available on the US Department of State web site.

Australian Aviation White Paper due out this month

On 30 November 2009 the ABC reported that the Australian Government is expected to release its National Aviation Policy Statement on 16 December 2009 (see previous post).

A key issue will be what comment is made about the location for a second major airport for Sydney. Given the rampant NIMBYism, I am not expecting a definitive long-term answer (NIMBY = not in my back yard).

The end of year release seems to have stirred the Singapore Airlines (SQ) public relations machine into further action with the Sydney Morning Herald (SMH) reporting on 2 November 2009 the airline's wish to be granted fifth freedom rights between Australia and the USA. One wonders if the situation will change should the US Department of Transportation grant anti-trust immunity for the V Australia/Delta tie up (see previous post).

Incidentally the SMH story contains a basic error in the second paragraph when it says "Because Australia and the US have an open-skies treaty, Singapore Airline's access hinges on the go-ahead only from the Rudd Government." The Australia-US treaty is irrelevant to a Singapore Airlines fifth freedom service beyond Australia to the USA. What the article should have said was "Because Singapore and the US are party to an open-skies treaty, ..."

Latest ACI statistics point to few bright spots for international air passenger numbers

The Airports Council International data released on 17 November 2009 for international passenger movements at the world's top airports make relatively grim reading. For the 12 months ended August 2009 only three of the top 30 international airports, Dubai (DXB), Istanbul (IST) and Kuala Lumpur (KUL), reported positive growth.

All three airports are hubs for airlines that have been enjoying a relatively successful year. It remains to be seen what impact Dubai's current financial difficulties will have on traffic at the airport.

Invercargill International Airport?

On 31 October 2009 the Otago Daily Times reported that Invercargill Airport (IVC), located in the Southland, New Zealand, is looking at providing international facilities for Pacific Wings according to industry sources. The Australian airline would wet lease aircraft for any trans-Tasman services from Nauruan carrier Our Airline.

With the restart of international air services into Hamilton (HLZ) by Pacific Blue on 1 September 2009, currently New Zealand has six international airports. Air New Zealand plans to start the first trans-Tasman scheduled services into Rotorua (ROT) on 12 December 2009.

New Government in Japan proposes opening Haneda to more international air services

On 13 October 2009 and 16 October 2009 the Japan Times reported on a proposal by the new Minister of Transport Seiji Maehara that Haneda Airport in Tokyo be turned into a 24-hour hub airport with both domestic and international air services. The New Zealand experience has been that a significant number of visitors from Southern Japan do travel via Incheon in Korea bearing out a comment made in the second article.

To date almost all long-haul international air services to Tokyo have operated to Narita Airport. On 22 October 2009 Narita will open an extension of Runway B to 2,500m. More slots will become available in March next year as a kink in the taxiway is straightened following a small land acquisition.

Trans-Tasman air facilitation announcements

On 20 August 2009 the New Zealand and Australian governments made a set of announcements on how passengers crossing the Tasman would in future be processed through airports.

Media statements included those from:

• Australian and New Zealand Prime Ministers - a brief mention
• New Zealand Prime Minister
• New Zealand Customs Minister
• New Zealand Biosecurity Minister
• New Zealand Immigration Minister

• Air New Zealand
• Qantas