Tuesday 14 November 2017

Why Iceland's WOW Air could be planning to fly from America to India


Full article on forbes.com

WOW Air has confirmed its intention to launch Asian flights during a new wave of long-haul expansion in 2019, but chief executive SkĂșli Mogensen is remaining tight-lipped about which destinations will be served.

“Beyond next year, with the addition of the A330neos, we will start Asia flights,” he told me last week, referring to the delivery of four next-generation wide-bodies in late 2018. “It is very interesting to see how well Iceland is positioned to make certain connections [with Asia] ... East Coast U.S. is by far the superior route for connections...

Monday 13 November 2017

Pegasus Airlines may launch Ukrainian subsidiary, order more A321neos


Full article on forbes.com

Turkey’s Pegasus Airlines is considering setting up a subsidiary in Ukraine and may also increase its order for Airbus A321neos, according to Emre Pekesen, sales and network planning director at the low-cost carrier.

Management have held talks with Ukraine’s Infrastructure Ministry in Kiev about the possible joint venture, which would be majority owned by Ukrainian investors and would fly under a Ukrainian operating license. Pegasus already runs one such joint venture, Air Manas, formerly branded Pegasus Asia, in the central Asian country of Kyrgyzstan.

“Pegasus always is looking around nearby countries and just waiting for the opportunities,” Pekesen told me...

Wednesday 1 November 2017

Interview: Ajay Singh, SpiceJet Chairman


Full article in JPG format:
page 44/45 & page 46

India’s government has not always met with universal praise when setting air transportation policies, but the rationale behind prime minister Narendra Modi’s Regional Connectivity Scheme – dubbed Ude Desh ka Aam Naagrik (UDAN), or “let the common man fly”– is hard to fault.

UDAN aims to ensure that the economic benefits of India’s rapid aviation growth are spread equally between all regions, instead of orbiting around wealthy metropolitan areas. The subsidised scheme gives airlines incentives for launching thin routes with regional aircraft, as well as limiting the maximum fare paid by many passengers.

“Aviation cannot be about rich people,” Modi said during a speech in the Gujarati town of Chotila last month. “We have made aviation affordable and within reach of the lesser privileged.”

For low-cost carriers like SpiceJet, engaging with UDAN is as much a commercial necessity as a social obligation. India’s fourth-largest airline has a target of deploying 200 aircraft by 2024 – up from 54 today – amid a scramble for market share in one of the world’s hottest airline sectors, where domestic traffic is growing by 21% a year and 97% of the population still does not fly...

Thursday 26 October 2017

UDAN a good job, Mr Modi


Full article on economist.com

Why would one of the world’s fastest-growing airlines buy a ten-seat propeller plane, when most of its customers fly on 200-seat jets? Switching to smaller, less efficient aircraft defies commercial logic. But it is an appealing thought for those living in isolated communities far from big airports. That is what India’s new regional connectivity scheme, Ude Desh Ka Aam Nagrik (UDAN) or “let the common man fly”, promises to offer. It uses subsidies to improve the commercial viability of seldom-used routes. It also caps half of the fares on such routes at 2,500 rupees ($38) per hour of travel. If properly implemented and funded, the scheme could become a powerful tool for spreading India’s economic wealth more evenly...

Tuesday 24 October 2017

Wizz Air UK: A case study in Brexit scaremongering


Full article on forbes.com

Wizz Air, the central and eastern European low-cost carrier, has unveiled plans for a dedicated UK subsidiary to grow its British operations after Brexit – despite being depicted by many as an early casualty of the UK’s vote to leave the EU.

The move is designed to help Wizz Air expand its presence at London Luton Airport regardless of any headwinds caused by the UK’s withdrawal from European aviation treaties. The airline currently uses its Hungarian operating license to base planes in foreign cities like London, exploiting liberal cross-border rules within the European Common Aviation Area (ECAA). Unless Brussels agrees otherwise, Britain’s access to the ECAA will automatically expire in 2019...

Saturday 30 September 2017

Interview: Patee Sarasin, Nok Air CEO


Full article on forbes.com

Nok Air's outgoing boss believes his company needs a strategic partner to stay afloat and that Singapore Airlines may step in if Thai Airways International (THAI) ends its financial support.

“The shareholders have been discussing about this themselves,” Patee Sarasin told me this month, when asked about the possibility of THAI abstaining from Nok’s 1.7 billion baht ($51 million) recapitalization. “The current major shareholders now, beside THAI, have expressed that they are willing to take all of it if TG [THAI] doesn’t want to participate.”

In that scenario, Sarasin said Nok would begin searching for a new strategic partner “that can provide knowhow”. He confirmed that Singapore Airlines, an existing partner of Nok’s through low-cost long-haul venture NokScoot, would be among the candidates...

Friday 29 September 2017

Ukraine’s aviation sector is holding the country back


Full article on economist.com

Look at a map of domestic air traffic in any rich country and the relationship between flying and economic prosperity becomes obvious. In America, 614 towns and cities have regular flights to other domestic airports. Australia has 144 such places. Even in modestly sized Britain that number is 49. The more complex and headache-inducing a domestic route map becomes, the more a country fosters connectivity between its regions. Development naturally flows. It is a symbiosis that helps to fuel growth in rising economies like India and China. Yet not all emerging markets foster the link between travel and wealth...

Interview: Yaroslav Agafonov, Yanair CEO


Full article on forbes.com

Ukrainian airline Yanair has secured traffic rights for several European countries and expects to launch new scheduled services in the summer 2018 season.

“We are intending to enlarge the geography of our network from Kiev and Odessa,” chief executive Yaroslav Agafonov tells me, referring to the airline’s flights to Tbilisi and Batumi in Georgia, plus Tel Aviv in Israel. “It may be secondary airports, not huge airports, for example Krakow in Poland, Paderborn in Germany, or Frankfurt Hahn.”

Agafonov also identifies Cyprus, Italy and Romania as potential targets for expansion, without specifying which cities will be considered in those markets...

Wednesday 6 September 2017

Interview: Volodymyr Omelyan, Ukrainian Infrastructure Minister


Full article on forbes.com

With a score of 29 out of 100 in Transparency International’s Corruption Perceptions Index – placing it 131st out of 176 counties – Ukraine was guaranteed a turbulent ride in March when its pro-Western government moved to liberalize the closely guarded civil aviation market. It ultimately took just four months for Ryanair to cancel its planned launch in the country, retreating from what Volodymyr Omelyan, Ukraine’s Infrastructure Minister, describes as “sabotage” by a network of post-Soviet oligarchs and vested interests...

Wednesday 9 August 2017

Chucking Kiev


Full article on economist.com

Such has been the success of Ryanair, Europe’s largest low-cost carrier, that the continent is now awash with towns and villages whose economies depend in no small part on access to its route network. This encroachment into small regional airports evolved from an early focus on large European cities, whose gateways swelled with traffic following deregulation in the 1990s. Yet today, there are still European countries not served by the airline. Ukraine, the last big jewel for low-cost carriers in Europe, is an obvious white spot. It may be for some time to come. Despite promising to add four routes to Kiev and seven to Lviv this year, Ryanair has been pushed out by a coalition of local interests who have little appetite for competition. Ukrainians will foot the bill for their protection...