Airlines 2021-01

airlines.iata.org

SAFETY FIRST IN INDUSTRY RESTART Aviation safety had its challenges in 2020 but the focus has shifted to the anticipated resurgence of travel

2021 – 01

CEO Interviews IATA Director General, Aegean Airlines | Financial systems Efficient money management is vital | IATA Opinion Clarity for restart | Financial systems Efficient money management is vital | Aircraft slots Flexibility needed to power industry

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26/03/2021 10:39

Helping your customers Ġõ ÝãÝåê IATA Travel Pass is not just a standalone app — it’s interoperable.

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So travelers can get the VHFXULW\ DQG HƱFLHQF\ RI IATA Travel Pass in their IDYRXULWH DLUOLQHoV DSS Registry of health requirements

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26/03/2021 08:31

Airlines.

Contents 2021 – 01

Comment

CEO Interviews

5 Alexandre de Juniac, Director General

After a year of lockdown, people are hungry to travel

28

14 The business of freedom will fly again

Alexandre de Juniac, IATA’s outgoing Director General and CEO, speaks about his time in office

30 IATA Opinion: Sebastian Mikosz, Senior Vice President for Member and External Relations

22 Expect the unexpected

Dimitris Gerogiannis, CEO, Aegean Airlines, on remaining resilient in the face of unprecedented crises

Governments must provide greater clarity for the industry restart

Features Digest

18 Slot flexibility will power restart

8 IATA and industry update

If carriers are to resume their role connecting the world, the slot system must allow airlines to adapt to demand

Traveler confidence up, Passenger traffic off to poor start, Airlines’ cash burn, Air travel and cargo demand, IATA Travel Pass, Recommendations for industry,

3

20 Sustainable financial systems

14

18

12 Data: In numbers

Efficient money management has become more important than ever

2021 indicators for industry performance 28 Safety first in industry reopening

Aviation safety had its challenges in 2020 but the focus has shifted to the anticipated resurgence

IATA Corporate Communications Vice President Anthony Concil Creative Direction Richard McCausland Assistant Director Chris Goater www.iata.org Editorial Editor Graham Newton Head of content production DeeDee Doke Production editor Vanessa Townsend Senior designer Gary Hill Picture editor Claire Echavarry Production Production manager Jane Easterman +44 (0)20 7880 6248 jane.easterman@redactive.co.uk Publishing director Aaron Nicholls

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26/03/2021 08:10

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26/03/2021 09:52

Comment: Director General and CEO, IATA

Time to reconnect the world After more than a year in lockdown, people are hungry to travel. And from an economic perspective, it’s vital aviation restarts as soon as it is safe to do so

ILLUSTRATION: SAM KERR

T

he past year has tested our industry as never before. The global tragedy of COVID-19, which has taken some 2.7 million lives and left many economies in ruin, did not spare aviation. The scale of damage exceeds the combined impact of 9-11, SARS, and the global financial crisis.

In terms of passenger demand, we are back to 1998 levels—a 66% fall from pre-crisis levels. And passenger revenue in 2020 regressed 27 years! We estimate industry losses topped $118 billion last year; and more than 1 million jobs went away. Some $225 billion in government financial relief has been a lifeline for many airlines, with more likely to be needed before the crisis is over.

Our industry was able to persevere. We continue to facilitate vital travel, including repatriations. And air cargo became a lifeline, as demand for medical equipment and pharmaceuticals soared. Today some of our most precious cargo are the vaccines that hold so much promise. As vaccine programs ramp up, I hope I’m not tempting fate by suggesting that we can see the light at the end of the tunnel.

After a year in lockdown people are hungry for the freedom to travel. And those who have traveled even during the pandemic give us confidence that they will feel safe doing so. A recent poll of people who have traveled since last June shows that 90% believe that the airlines have done a good job in enforcing health and safety rules. The same poll showed that about 57% of travelers will be ready to fly within a few months of the pandemic being contained. But we aren’t there yet. And much remains to be done: Testing and/or vaccinations must replace quarantine measures.

So long as we have quarantine there will be no restart. Test those airlines.iata.org

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who cannot or do not wish to be vaccinated and allow the vaccinated to travel without restriction.

Secure digital standards need to be agreed and accepted by governments to manage testing and vaccination documentation.

We’re ready with IATA Travel Pass, which is already being tested.

Lastly, we need a plan. It’s critical that governments share their benchmarks and roadmaps for restarting aviation so that airlines and our industry partners are ready to go when borders reopen.

It’s important aviation restarts as soon as borders can open safely. The economic imperatives of that are well documented.

Aviation will energize the economic recovery by putting people back to work. More broadly, we have seen that a world denied the freedom to fly is much poorer—not just economically, but socially, mentally, and culturally as well.

Aviation is the business of freedom. That has been my greatest motivation in leading IATA. As I hand over to Willie Walsh, my successor, I am confident that people have not lost the desire to explore new places, to build global businesses, to make new connections or to reconnect with friends and family. Aviation is unique in enabling all this, and much more. Every flight that takes off is full of amazing possibilities. Regaining the freedom to fly will be challenging, but the most important things often are.

5

Alexandre de Juniac: Director General and CEO, IATA 2021 – 01 Airlines

26/03/2021 08:11

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IMAGES: FRANCIS KOKOROKO / REUTERS

Air transport continues to play a critical role in defeating the coronavirus pandemic, delivering vaccines throughout the world. Vaccine distribution together with increased testing will enable governments to unlock economic activity, including travel. Governments must build and share their restart plans. This will enable the industry to prepare and boost the global recovery.

The Big Picture

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Digest Planning for restart as travelers gain confidence A recent IATA poll of travelers revealed growing confidence in a return to air travel, frustration with current travel restrictions, and acceptance of a travel app to manage health credentials.

Travel Restrictions

88% believe that when opening borders, the right balance must be struck between managing COVID-19 risks and getting the economy going again 85% believe that governments should set COVID-19 targets, such as testing capacity or vaccine distribution to re-open borders

Future Travel Trends

57% expect to be traveling within two months of the pandemic being contained (49% in September 2020) 72% want to travel to see family and friends as soon as possible (63% in September 2020) 81% believe that they will be more likely to travel once they are vaccinated 84% said they will not travel if there is a chance of quarantine at destination (83% in September 2020) 56% believe that they will postpone travel until the economy stabilizes (65% in September 2020).

“People want to get back to travel, but quarantine is the showstopper,” said de Juniac. “As testing capacity and technology improves and the vaccinated population grows, the conditions for removing quarantine measures are being created. And this points us again towards working with governments for a well-planned re-opening as soon as conditions allow.”

IMAGES: GETTY/ISTOCK/SHUTTERSTOCK

8

84% believe that COVID-19 will not disappear, and we need to manage its risks while living and traveling normally 68% agreed that their quality of life has suffered with travel restrictions 49% believe that air travel restrictions have gone too far.

“The top priority of everybody at the moment is staying safe amid the COVID-19 crisis,” said Alexandre de Juniac, IATA’s Director General and CEO. “But it is important that we map a way to being able to re-open borders...

That’s why a plan with measurable milestones is so critical. Without one,

how can we be prepared for restart without an unnecessary delay?”

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airlines.iata.org

26/03/2021 08:13

Digest

“2021 is starting off worse than 2020 ended and that is saying a lot” Alexandre de Juniac, IATA’s Director General and CEO

2021 passenger traffic off to a poor start Passenger traffic continues to fall despite the worldwide rollout of vaccinations.

Total demand in January 2021 (measured in revenue passenger kilometers or RPKs) was down 72% compared with January 2019 (January 2020 figures are distorted due to the impact of the coronavirus).

Total domestic demand was down 47.4% versus pre-crisis January 2019 levels. In December 2020, it was down 42.9% on the previous year. This weakening is largely driven by stricter domestic travel controls in China over the Lunar New Year holiday period.

International passenger demand in January 2021 was 85.6% below January 2019, a further

drop compared with the 85.3% year-on-year decline recorded in December.

“2021 is starting off worse than 2020 ended and that is saying a lot,” said Alexandre de Juniac, IATA’s Director General and CEO. “Even as vaccination programs gather pace, new COVID variants are leading governments to increase travel restrictions. The uncertainty around how long these restrictions will last also has an impact on future travel.”

IATA expects the industry to burn through $75-$95 billion in cash this year, rather than turning cash positive in the fourth quarter. The industry won’t be able to endure this without additional relief measures from governments.

AIRLINES CONTINUE TO BURN THROUGH CASH The airline industry is expected to remain cash negative throughout 2021. New estimates for cash burn are in the $75–$95 billion range.

One reason for this is the weak start to 2021. It is already clear that the first half of 2021 will be worse than earlier anticipated.

This is because governments have tightened travel restrictions in response to new COVID-19 variants.

Forward bookings for summer (July-August) are 78% below levels in February 2019 (comparisons with 2020 are distorted owing to COVID-19 impacts).

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From this lower starting point for the year, an optimistic scenario would see travel restrictions gradually lifted once the vulnerable populations in developed economies have been vaccinated, but only in time to facilitate tepid demand over the peak summer travel season in the northern hemisphere. In this case, 2021 demand would be 38% of 2019 levels. Airlines would burn through $75 billion of cash over the year.

But cash burn of $7 billion in the fourth quarter would be significantly improved from an anticipated $33 billion cash burn in the first quarter.

Cash burn: One reason for the $75-$95 billion estimate is down to the weak start to 2021

HELPING AIRLINES MANAGE DISRUPTIONS

Covid-19 has caused airlines to re-evaluate operational strategies, including utilisation of digital solutions.

“Going digital” not only supports carriers as they recover by reducing admin time and costs but can also be used to maintain a positive reputation amongst passengers.

9

Airlines. editor Graham Newton spoke to Alexander van Deudekom, CEO and founder of ground transportation company Get-e, about why now is the time for carriers to embrace intelligent tools.

Click on the link below to watch the full interview and find out more about reducing administrative burdens such as crew transfers, ensuring crew arrive on time for effective flight operation, and why digital solutions should be adopted today to prepare for the return of travel and to assuage any potential increase in flight disruptions. https://www. youtube.com/ watch?v=jleY2E1XU9I

2021 – 01 Airlines

26/03/2021 08:13

Digest

“As vaccination programs gather pace, new COVID variants are leading governments to increase travel restrictions” Alexandre de Juniac, IATA’s Director General and CEO

‘Catastrophic’ year for air travel demand

10

IATA figures show that total year 2020 demand (revenue passenger kilometers or RPKs) fell 65.9% compared with 2019, by far the sharpest traffic decline in aviation history. Furthermore, forward bookings have been falling sharply since late December.

International passenger demand in 2020 was 75.6% below 2019 levels.

Capacity (measured in available seat kilometers or ASKs) declined 68.1% and the load factor fell 19.2 percentage points to 62.8%.

Domestic demand in 2020 was down 48.8% compared with 2019. Capacity contracted 35.7% and the load factor dropped 17 percentage points to 66.6%.

December 2020 total traffic was 69.7% below the same month in 2019, little improved from the 70.4% contraction

IATA’s baseline forecast for 2021 is for a 50.4% improvement on 2020 demand that would bring the industry to 50.6% of 2019 levels.

in November. Capacity was down 56.7% and the load factor fell 24.6 percentage points to 57.5%.

Bookings for future travel made in January 2021 were down 70% compared with a year ago, putting further pressure on airline cash positions.

UPDATED RECOMMENDATIONS FOR INDUSTRY ICAO has announced the latest recommendations from its Aviation Recovery Task Force (CART). Key outputs include: Recommendations for Temporary liberalization of cargo flights Considering priority vaccination of air crew Increased cooperation among governments to implement CART recommendations Updated or new guidance for Testing certificates

Airlines 2021 – 01

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COVID-19 risk management including vaccination and its interdependencies Dangerous goods guidelines for the carriage of cargo on passenger aircraft used in freighter operations A new mechanism for reporting extended regulatory alleviations “These recommendations, guidelines, and tools are only meaningful if they are adopted universally,” said Alexandre de Juniac, IATA’s

“Last year was a catastrophe,” said Alexandre de Juniac, IATA’s Director General and CEO. “There is no other way to describe it. What recovery there was over the Northern Hemisphere summer season stalled in autumn and the situation turned dramatically worse over the year-end holiday season, as more severe travel restrictions were imposed in the face of new outbreaks and new strains of COVID-19.”

The world continues to be locked down and passengers face a bewildering array of rapidly changing and globally uncoordinated travel restrictions.

CART recommendations: Vaccinations are among the guidelines announced by the ICAO

Director General and CEO. “It is crucial that states implement this guidance, particularly as they plan for the restart of international aviation when borders open.

As we have said many times, it was easy to shut down aviation with individual decisions. Restarting and maintaining operations to deliver economically and socially vital connectivity can only happen if all parties work together. The CART recommendations are the building blocks for that cooperation.”

airlines.iata.org

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Digest Panama City: The Republic of Panama and Copa Airlines are togethertrialing the IATA Travel Pass

AIR CARGO DEMAND DROPS IN 2020 Demand for air cargo decreased 10.6% in 2020 compared with 2019, according 2020 to IATA. A lack of global capacity, however, pushed load factors higher. Capacity, measured in available cargo tonnekilometers (ACTKs), shrank 23.3% in 2020 causing load factors to increase 7.7%. This contributed to increased yields and revenues, providing support to airlines and some long-haul passenger services in the face of collapsed passenger revenues.

But with the stalling of the recovery in passenger markets, there is no end in sight for the capacity crunch. This may be significant as economic conditions improve.

The new export orders component of the manufacturing Purchasing Managers’ Index (PMI) is in growth territory in both developed and emerging markets. And global industrial production has also recovered.

“Air cargo is surviving the crisis in better shape than the passenger side of the business,” said Alexandre de Juniac, IATA’s Director General and CEO. “For many airlines, 2020 saw air cargo become a vital source of revenues, despite weakened demand. But with much of the passenger fleet grounded, meeting demand without belly capacity continues to be an enormous challenge. And, as countries strengthen travel restrictions in the face of new coronavirus variants, it is difficult to see improvements in passenger demand or the capacity crunch; 2021 will be another tough year.”

10.6% Demand for air cargo decreased 10.6% in 2020

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Panama and Copa Airlines partner on IATA Travel Pass IATA is partnering with the Republic of Panama government and Copa Airlines to trial IATA Travel Pass.

Panama is the first government to participate in a trial of IATA Travel Pass, which will be essential to re-establishing global connectivity while managing the risks of COVID-19. Similarly, Copa Airlines will be the first carrier in the Americas to trial the IATA Travel Pass.

Using IATA Travel Pass, Copa Airlines passengers will be able to create a digital passport. This will allow passengers to match their travel itineraries with the COVID-19 health requirements of their destination and validate that they comply with these requirements.

“At Copa Airlines we are proud to be pioneers in the implementation of IATA Travel Pass, working together with IATA and the government of Panama,” stated Dan Gunn, Copa’s Senior Vice President for Operations. “The IATA Travel Pass will simplify and enhance compliance with health requirements for our passengers.

11

An international standard solution for digital health passports such as IATA Travel Pass holds the key to the safe restart of the travel and tourism industry, which is an important contributor to Panama’s and Latin America’s economy.”

Peter Cerdá, IATA Regional Vice President for the Americas, said: “The IATA Travel Pass will help give governments confidence that passengers have complied with health requirements enabling aviation to reconnect the region’s economies with each other and to the world. Copa Airlines’ extensive network in the region and Panama’s strategic geographic position makes them an ideal candidate to trial the IATA Travel Pass.”

The IATA Travel Pass will also include a registry of testing and eventually vaccination centers, making it more convenient for passengers to find testing centers and labs at their departure location which meet the standards for testing and vaccination requirements of their destination.

2021 – 01 Airlines

26/03/2021 08:13

Data

In numbers INITIAL INDUSTRY PERFORMANCE 2021

Forward bookings for summer (July-August) are currently 78% below levels in February 2019 (comparisons to 2020 are distorted owing to COVID-19 impacts)

12

Potential cash burn in 2021 under a worst-case scenario Domestic demand in 2020 was down 48.8% compared to 2019. Capacity contracted by 35.7% and load factor dropped 17 percentage points to 66.6%.

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Passenger load factors fall a quarter 48.8%

Industry load factor 25.7 percentage points lower than pre-crisis levels at 54.1% Source: IATA Economics using data from IATA Statistics 1 Change in load factor vs 2019 2Load Factor Level

PLF (level)2

54.1%

PLF (%-pt)1

-25.7% Jan 2021 (% chg vs the same month in 2019)

TOTAL MARKET

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Data

75.6%

(Source: IATA)

Bookings weaken despite vaccination rise Initial rise in forward bookings reversed at year end Source: IATA Economics using data from DDS % year-on-year

YoY change in net passenger bookings, worldwide

0% December 23rd: Xmas booking

International passenger demand in 2020 was 75.6% below 2019 levels.

Capacity (measured in available seat kilometers or ASKs) declined 68.1% and load factor fell 19.2 percentage BELOW 2019 LEVELS points to 62.8%.

-20% November 9th: first positive news about vaccines -40% Actual 7-day moving average -60%

-80%

Purchase date -100% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Jul-20

Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21

13

Global cargo demand in January 2021, measured in cargo tonne-kilometers (CTKs), was up 1.1% compared with January 2019 and +3% compared to December 2020.

Travel fell as governments imposed tighter restrictions International travel restrictions up, and domestic restrictions also rose Source: IATA Economics using data from Oxford University International travel stringency index weighted by population (Jan 2020-Jan 2021)

1.1%

4 – total border closure

3 – closed to some regions

2 – quarantine arrivals from high risk regions Asia-Pacific Europe Central and South America North America Africa & Middle East

1 – screening

0 – no measures Jan

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Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2021 – 01 Airlines

26/03/2021 08:14

DG Interview

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Airlines 2021 – 01

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DG Interview

The business of freedom will fly again Alexandre de Juniac, IATA’s Director General and CEO, steps down on March 31, 2021. He talks to Airlines. about his time in office WORDS: GRAHAM NEWTON

15

A

s IATA’s Director General and CEO Alexandre de Juniac leaves his post, he talks about his time at IATA, the challenges that the industry faced in the past COVID-hit year, and his optimism for the future of aviation.

What attracted you to the job as IATA Director General and CEO and what did you want to achieve?

I was formerly the CEO of Air France-KLM, so I knew that the majority of airlines usually struggled to break even or perhaps lost money.

But the industry at this time was growing strongly and was in a run of profitability that hadn’t been seen before. And as airlines were finally making money that meant there was an opportunity to make a difference and implement needed changes. That attracted me.

Of course, the growing concern was the environment. We established the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) soon after I joined, in October 2016. That was a huge step forward because it was agreed at ICAO level and it gives us a clear path for emissions reduction. airlines.iata.org

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“Now is the right time for somebody fresh to ensure the recovery doesn’t falter but rather gathers speed.

I am sure Willie Walsh is the right person to lead IATA and the industry going forward”

Many of the other challenges were the ones you would expect. We needed to have the right infrastructure to maintain the growth and we needed to keep costs low and have responsible taxation regulations.

Overall, the aim was to do everything possible to promote the industry—which I call the business of freedom. We wanted aviation to have the freedom to connect the world, create jobs, and boost economies.

For that to happen we needed to improve our relationships with governments and other aviation stakeholders. That meant we had to focus and identify the key issues and the potential solutions. It was working well until COVID-19. Nobody foresaw the pandemic.

What has it been like leading the industry over the past year?

It was hard because the situation changed so quickly. It is still changing with new variants.

The virus and its spread were unknown quantities. COVID-19 wasn’t even declared a pandemic by the World Health Organization until March 2020. Before that point we thought it might be largely contained within Asia-Pacific and most of the disruption would be in that region.

2021 – 01 Airlines

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DG Interview

16

But things changed rapidly, and IATA shifted into crisis mode within the space of a few days.

It was clear we had to have different priorities and different targets.

Remember, the industry was well prepared for a crisis and had all the right elements in place. We had successfully dealt with pandemics in the past like SARS and H1N1 (bird flu) but COVID-19 was more extreme by several orders of magnitude.

The challenge was made more difficult by the approach of governments. There was no consistency in governments’ responses. There was total disarray and to a large extent that is still the case. In other words, we have got an extremely fast-moving, fragmented picture and that is the worst possible scenario for a global industry that needs global standards, predictability, and harmonization.

What changes did you make internally?

A lot of cost out was taken out of IATA in a very short time to ensure we were in a good position to fully support the industry going forward.

That was painful but it had to be done. The industry had to preserve cash and so did IATA. And we could not compromise on key functions, like the financial systems. We knew how vital it was to get to get money from Point A to Point B in a timely manner.

There was an enormous strain on the systems during the pandemic as everybody needed money. We managed to take cost out of the financial settlement systems while improving their flexibility to cope with the extraordinary situation.

We also had to find the resources to invest in critical projects to support the restart. IATA Travel Pass is a good example. This will play a key role in restarting the industry.

And, of course, the biggest change is a new DG. Now is the right time for somebody fresh to ensure the recovery doesn’t falter but rather gathers speed. I am sure Willie Walsh is the right person to lead IATA and the industry going forward.

Airlines 2021 – 01

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Has the crisis harmed the relationships between aviation stakeholders?

“I am very optimistic.

The recovery will happen because the appetite for the freedom to fly is still there”

No, the coronavirus pandemic has created stronger connections between aviation stakeholders and given us a common interest.

We are all in the same boat and we are fighting this together. We have the same problems and together we can find common solutions.

Has the industry done enough on the environment?

CORSIA was a key step in our successful environmental roadmap. But, of course, we must go further. Strong targets are in place and the industry is fully committed to halving net emissions by 2050 compared with 2005. But we must see what can be done to reinforce and accelerate that commitment.

We rely on several elements. There is not one magic bullet. So, sustainable aviation fuels, operational optimisation, efficient infrastructure, and market-based measures

“We wanted aviation to have the freedom to connect the world, create jobs, and boost economies”

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will all combine to achieve our targets. To go faster, we just need to be even more successful at these individual elements.

Are airlines going fast enough with digitization or will lack of revenue stifle progress?

The crisis has definitely accelerated the digitization of the passenger experience and automation in general. That can be seen most clearly in IATA Travel Pass. The App is the best way to deal with the current travel requirements in a manner that keeps passenger processing manageable. It allows airlines to answer the demand that is undoubtedly there, although governments must agree on standards for the information.

Standards make technology work. The industry understands this and understands what technology can do. It enables us to work not only more efficiently but also to keep costs down. That is why investment in digitisation will continue.

And I am convinced that IATA Travel Pass will be one of the stories about how the industry improved in the crisis. Digital identity, which is at the heart of the IATA Travel Pass, will boost OneID and the positive transformational impact that will have on the passenger experience.

IMAGES: SHUTTERSTOCK/ISTOCK

How will the future pan out for the industry?

I am very optimistic. The recovery will happen because the appetite for the freedom to fly is still there. But business travel may be delayed compared with travel that is personally motivated.

You can see that in China and in those air travel corridors that are open. Business travel is different because there are good tools for video conferencing that people are becoming used to and because company travel budgets have been slashed. Also, big events have been canceled and there are fewer business conferences. These things will take time to resolve but I am certain they will come back.

It is a matter of when and not if.

I think we will see the same structure as the industry recovers. There will be low cost and airlines.iata.org

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2050

DG Interview

Strong targets are in place and the industry is fully committed to halving net emissions by 2050 compared with 2005.

network carriers addressing different segments of the market, for example. But long-haul low cost might disappear for now. And there will be fewer operators as some will probably go bankrupt and those that survive will operate less aircraft. It will be a smaller industry for a while, but it will grow again.

The one trend that might take longer to reappear is consolidation. That will be scarce for many years. No matter how it is done, consolidation always costs something, and nobody has any money for that type of activity.

Also, many governments have injected a lot of money into their flag carriers and home airlines and this will prove a barrier. It will be difficult politically and financially to unwind the complexity of ownership. And with less flying taking place in general, the desire for consolidation won’t be quite so strong.

17

Will the passenger experience be different?

The new health measures will be temporary, but it will be interesting to see how it affects thinking in the industry especially once we get a clearer picture on demand. Will airlines adapt the configurations of their aircraft? How will they approach cleaning and sanitization even when the pandemic has subsided? The way meals and drinks are handled may change.

There could be many new ideas in these areas.

The industry and IATA have worked hard to put the passenger front and center in all our initiatives so the passenger experience of the future will be based on what the passenger wants.

Is there anything you would have done differently?

If anything, it would be promoting open skies and open borders more strongly. A globalized, connected world creates jobs, powers economies, and unites friends and family.

Aviation is a positive force. It brings enormous benefits and the current fragmentation hampers all of that.

If this pandemic has proven one thing, it is that air transport is clearly the business of freedom.

2021 – 01 Airlines

26/03/2021 08:24

Slots

Slot flexibility needed to power industry restart

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The slot system must allow airlines to adapt to demand if carriers are to resume their role connecting the world WORDS: GRAHAM NEWTON

T

raditionally, the slot system—as outlined in the Worldwide Airport Slot Guidelines—worked well.

At congested airports, airlines got to keep their slots as long as they used them 80% of the time, while the rules enhanced consumer choice by enabling new carriers to access slots.

But the coronavirus pandemic brought air traffic to a standstill and where flights did take place shifts in the network were unavoidable. It was obvious the slot system had to be temporarily suspended.

Thankfully, regulators agreed, even if some were tardy in their decision making. For the 2020 Northern Hemisphere summer and winter season, full waivers were implemented worldwide. The 80-20 use-it-or-lose-it rule didn’t apply to any Level 3 airport.

Different approaches

Summer 2021 isn’t quite such a tidy picture. IATA has been working with airline members, industry partners, and regulators since early October 2020 to put the correct guidelines in place but it has been hard going.

The Worldwide Airport Slots Board (WASB), the representative body for airports, airlines, and coordinators on slot policy, agreed on a number of conditions considered force majeure in the COVID crisis, to accompany relief through early slot returns and a 50-50 use-it-or-lose-it rule as guiding principles for summer 2021.

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“Regulators are anticipating a recovery and are wary of relaxing rules too much, but the industry needs certainty,” says Lara Maughan, IATA’s Head of Worldwide Airport Slots. “Airports need to manage their resources and airlines have to organize crew and fleet. These things take time.”

The 2021 Northern Hemisphere summer season comprises three distinct approaches to slots. There is a continuation of full waivers; the WASB recommendation for a reduction of the 80-20 rule to 50-50, accompanied with a waiver for non-used slots that were returned early in February; and, in Europe, a complex set of measures that provide the industry with little flexibility and limit the alleviation to 50% of the slots held. The latter has been imposed despite the fact that Europe is suffering more than any other region.

“How airlines will adapt to the new rules is unknown,” says Maughan. “There is global misalignment and that makes things really complicated. The reality is that in Europe airlines will have to use a lot of slots or rely on the provisions agreed under force majeure to justify their cancellations.”

It is not just about carriers going in and out of Europe, though that is difficult enough to plan. The fact is that international flights are dependent on feeder flights. A service between Lisbon and Sao Paulo, for example, may depend on flights coming into Lisbon from Madrid or into Sao Paolo from Bogota.

If the Sao Paulo service doesn’t happen

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Slots

then the Madrid and Bogota flights are necessarily affected.

“The worst thing that can happen is airlines having to plan flights with no demand, and it’s totally invisible right now for Easter and the peak summer season,” Maughan adds. “In current circumstances, airlines simply cannot afford to operate flights that are not economically viable, and it is also unjustifiable from an environmental point of view.”

Flexibility the key

IMAGES: GETTY

Airlines need to have certainty that slots that can’t be used are treated as “justified non-use” when cancelled in advance. That will give them the flexibility to plan a network that matches supply with demand, against everchanging country restrictions brought in at a moment’s notice.

The unfolding situation in the early part of 2021 provides ample evidence of this need for flexibility. The United Kingdom gave just 72 hours’ notice on its closure of the travel corridor with Brazil, for example.

The appearance of new variants of COVID-19, meanwhile, meant all governments further tightened travel restrictions. This led not only to weaker demand in Q1 2021 for both international and domestic travel worldwide, but also destroyed future bookings.

“Airlines need flexibility to react to these travel bans, restrictions, and changes if they are to continue sustainable flying programs, as well as be in a position to react to demand as or when it reappears,” says Maughan. “Regulators and slot coordinators are essential in supporting a quicker recovery by enabling flexibility in capacity planning.”

Enabler not disabler

One argument advanced for stricter slot allocation is that flexibility is a means of

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“Regulators are anticipating a recovery and are wary of relaxing rules too much, but the industry needs certainty”

It could be two or three years before usage rules finally reach 80-20 once again

preserving the status quo for network carriers.

Actually, regional and low-cost carriers have seen the biggest network reductions. easyJet’s CEO Johan Lundgren spoke of the opportunity they took at Gatwick recently, preparing for the recovery, but also of the “absolute nonsense” that slot waivers are restricting competition, highlighting that waivers ensure slots are handed back for others to use should they so desire.

Another of the arguments put forward for a more restrictive slot system is pent-up demand.

Though the industry is hopeful that this is truly the case, no airline is “gaming” the system. The point is that the slot system must enable the industry recovery and not disable it. Tightening up too soon would be disastrous for airlines and airports. Lost slots translate into lost jobs, and a smaller network—terrible for passengers who want to travel again as soon as they can.

And just because an airline doesn’t have to fly that doesn’t mean that it won’t operate. Airlines want to fly. It is their business. And they will react when the demand is there.

In any case, the plan is for the use-it-or-lose-it rule to be slowly ratcheted up as air traffic recovers. There is no magic moment when that will happen but the WASB—as the global slot board—is committed to responding appropriately. It could be two or three years before usage rules finally reach 80-20 once again.

“The slot system has always allowed airlines to adapt to demand and we want that to continue to be the case,” concludes Maughan. “The world needs international connectivity. We can’t have deadlines or rules that don’t correspond with reality. Flexibility and slot relief help to limit airline failures and ensure more competition in the longer term, because there’s a foundation to come back to. Agile slot changes ensure a sustainable flying program. That’s good for airports, airlines, consumers, and the economy.”

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Financial Systems

Creating sustainable financial systems

WORDS: GRAHAM NEWTON

O

n March 1, 1971, the first Billing and Settlement Plan (BSP) came into operation in Japan.

More than a technical advance in money handling, it was an imaginative leap for the entire industry.

From this point onwards, airlines and accredited travel agencies had a standard way of settling accounts.

Even in an era when airlines sell a significant portion of tickets off their own websites, the BSP remains a key part of airline distribution strategies. It operates in some 180 countries with close to 400 participating airlines. In 2019, the last pre-COVID year, sales through the BSP totaled $237 billion, representing close to 40% of total industry ticket sales of $612 billion.

Overall, IATA financial settlement systems handle about 70% of indirect sales.

Flexibility in the system

70% IATA financial settlement systems handle about 70% of indirect sales

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There have been numerous improvements to the efficiency of these financial systems over the years. This was amply demonstrated in the response to the coronavirus pandemic.

Cash became the lifeblood of the industry and keeping it flowing was critical to survival.

Unfortunately for airlines it was often flowing in the wrong direction as customers were refunded for flights canceled due to the multitude of global travel restrictions. Within a matter of weeks, a Reverse Settlement process

was implemented in the BSP to handle the vast sums being refunded. In the second quarter 2020 alone, IATA estimates that airlines had a $35 billion refund liability in the BSP. At the same time, greater flexibility was introduced for travel agents. Previously, the BSP was effectively a one-size-fits-all model.

Agents would pay in according to a fixed schedule and payments out would similarly follow set dates. During 2020, a package of measures included extending grace periods for payments and financial reviews, and a re-assessment of bank guarantee calculation formulas to adapt to the lower level of sales All changes were implemented faster than ever before. Governance and decision-making were expedited, taking just 3-4 months from proposal to implementation.

Perhaps most importantly, some $22 million was taken out of operational expenses to keep airline costs as low as possible.

Platform of choice

The next test of IATA’s financial settlement systems will be their ability to evolve further and lay the foundations for another 50 years of efficient money management.

Juan Antonio Rodriguez, IATA’s Director Financial Settlement Operations Delivery, says the aim is to be nothing less than “the settlement platform of choice for the airline industry.” For that to happen, moving into

IMAGE: GETTY

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As the IATA BSP turns 50, efficient money management has become more important than ever

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2019

50 years more

In 2019, sales through the BSP totaled $237 billion, representing close to 40% of total industry ticket sales of $612 billion

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direct sales is a must. The association is developing IATA Pay for just that purpose.

IATA Pay is a solution leveraging trends in part made possible by the European Union’s Payment Services Directive 2 (PSD2), such as open banking, request-to-pay, and real time payments. The change in banking regulations means it has become possible for IATA to offer the industry a product that adds value in bank-to-bank transfer payments.

With IATA Pay, airlines will be able to offer their customers a direct payment solution that is cost-competitive compared with existing payment options. That means substantial savings to airlines on the $8 billion spent on these transactions in pre-COVID years.

A ‘go live’ announcement is expected in the coming months.

The move is expected to be welcomed by consumers as bank-to-bank transfers are growing quickly and have already become the main form of online payment in some countries.

India uses its Unified Payments Interface (UPI), for example. The simplicity and security associated with bank-to-bank transfers could result in more sales conversions.

“IATA Pay isn’t just a cheaper option,” says Rodriguez. “It is zero risk because the money changes hands instantly within secure platforms. We are always looking to improve risk management and cost controls. IATA Pay is the perfect solution.”

The next 50 years will surely bring as-yetunimagined changes, but more advanced options are already being considered. Many other payment forms are on the horizon, for example, and the aim is to incorporate all viable possibilities. Blockchain, in addition to the bank-to-bank payments, could play a part in making these payments secure.

Whether cryptocurrencies will be part of payment options is unknown. The likelihood is they will be just one more option, assuming they are legitimized. “Technically, cryptocurrency has been around for a while now, but it is still a very small market and it isn’t growing particularly quickly,” says Rodriguez.

“In contrast, bank-to-bank has grown enormously and is the dominant form of payment in many countries already. That is why we have focused efforts on direct sales.”

Artificial intelligence (AI) will continue to be evaluated and incorporated wherever and whenever is appropriate. The great advantage of AI is the ability to monitor data and identify trends. In theory, it could predict a bankruptcy before it occurs and safeguard monies. Certainly, it will improve the quality of service offered and reduce errors attributed to human input.

Airlines will benefit from the data AI accrues too. Settlement parameters will become transparent, allowing airlines to make informed decisions about risk potential.

And systems generally will benefit from ever greater automation. With advances in application programming interfaces real-time interaction becomes the norm, bringing all the efficiencies this implies.

“IATA has been professionally handling the industry’s money for 50 years and we need to continue adding value for the next 50 years,” says Rodriguez. “We want to be the obvious choice when the industry needs to move a dollar from point A to point B. We will achieve the next level of excellence.”

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2021 – 01 Airlines

26/03/2021 08:17

CEO Interview

Expect the unexpected Graham Newton talks to Dimitris Gerogiannis, CEO, Aegean Airlines about remaining resilient in the face of unprecedented crises WORDS: GRAHAM NEWTON

have overcome the economic crises in Greece, for example, by working together with our people. And we have learned to be fast and agile and to adapt as situations develop.

But if something is to be remembered from the past year, it is that it has been the most difficult time in the history of world aviation.

Irrespective of how well prepared you are, the crisis caused by the pandemic exceeded any measure of the unexpected or unpredicted compared with any past experiences.

Even so, the commitment and agility of our people and the support of our customers meant we adapted our operations, network, and strategy as quickly as possible.

From this crisis we will emerge even more resilient and competitive.

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How has the disruption to your airline hurt the overall Greek economy, including tourism?

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he past year has been by far the most challenging for the airline industry, with operators having to change and adapt in record time. According to its CEO, Aegean Airlines will come out of the experience stronger and even more competitive.

What lessons have you learned from last year?

Aegean has a longstanding experience in managing challenging situations. In the past, we Airlines 2021 – 01

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This has been a devastating year for the Greek economy, tourism, and our company. During the first wave of the pandemic in March 2020 our operations nearly ceased.

The partial lifting of travel restrictions across Europe in July allowed the gradual resumption of international flights, but at a very low level of activity compared with 2019.

Nevertheless, several countries remained inaccessible, demand was weak due to the pandemic, and the lack of coordination on travel protocols severely affected the restart efforts.

Greece is over 70% down in visitors and the Greek economy registered a deep recession during 2020. We are still at a very critical airlines.iata.org

26/03/2021 08:19

CEO Interview

“The airline industry has witnessed quite a few crises and most probably there will be many others in the future” airlines.iata.org

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CEO Interview

phase of the pandemic and there is a lot of uncertainty but the vaccination programs throughout Europe point to some sign of optimism later this year.

Have governments done enough to help the industry?

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I think all governments across the world, including the European Union and the Greek state, have been facing a completely novel situation and, given the circumstances, have done well.

But the role of the state in undertaking initiatives that limit the impact of the crisis, will remain crucial.

I don’t know if a second wave of support measures will be necessary for the entire industry, but certainly the travel and tourism restart worldwide will remain slow during 2021. It is very important therefore that the necessary protocols and guidelines for air travel are defined and agreed and the first

70% Greece is over 70% down in visitors

2021 In 2021, our goal is to win back our passengers, maintaining our commitment to provide high quality services, which will be enhanced with measures that we have taken to meet and exceed the health requirements Airlines 2021 – 01

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phase of vaccinations progress quickly across Europe.

Such measures will be essential in getting us out of the dire situation we have found ourselves in for the past year.

What are your plans and hopes for 2021 and beyond?

Of course, we remain firmly committed to health-safe travel and supporting tourism in 2021, as we did in 2020.

In 2021, our goal is to win back our passengers, maintaining our commitment to provide high quality services, which will be enhanced with measures that we have taken to meet and exceed the health requirements.

For us, this is the beginning of a gradual, yet difficult, return to the so called “new normal.”

Specifically, our plans call for connecting an increased number of popular Greek island destinations with international destinations.

This will have a key impact in supporting the Greek tourism sector.

Against the catastrophic impact of the pandemic in aviation, we will continue our efforts to improve our service offering to the customer, improve our competitiveness, and keep contributing substantially to the Greek economy, as we have done so far.

As always, we will make every possible effort to keep Aegean among the most resilient carriers in Europe.

Do you think we will see permanent changes in the way travelers book or the experience they want when they fly?

Because the pandemic continues to bring uncertainty and government responses still unravel, the customer response is still in flux.

Airline customers are keen to travel. But they will only do so under the condition that health measures are strictly applied across the passenger journey and that countries implement common travel protocols that are efficient, stable, and predictable.

It’s clear that passenger health and safety will airlines.iata.org

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CEO Interview

be a core element of the customer experience in the foreseeable future. We expect to see passengers place greater emphasis on things such as cleanliness and other hygiene measures.

The commitment of airlines to consistently implement the new travel protocols and hygiene standards will need to remain, along with a high level of service, always a top priority for the customer.

Once the health concerns are met, we may be surprised about the pent-up demand for travel.

What about the overall industry structure?

Do you see cooperation or competition as the best way forward?

The airline industry has always been driven by innovation, which has led to increased competitiveness. At the same time, cooperation in different forms has also characterized the industry.

In the foreseeable future, both elements will remain a strong driver.

“The commitment and agility of our people and the support of our customers meant we adapted our operations, network, and strategy as quickly as possible” improve the experience at every step of the customer journey.

Of course, the pandemic and the related need for social distancing has contributed to the faster penetration of digital solutions in every business.

For me, it is obvious that this trend will continue. And that means that related investment is necessary for an airline to remain competitive in the new era.

Has the crisis forced the working relationship with airports and ATM to improve?

It is the nature of our industry that airports, airlines, and air navigation service providers share a symbiotic relationship.

Structural and operational improvements, which were anyway required in pre-pandemic times, have now become even more necessary after the huge disruption that hit the travel industry. So, collaboration has to improve for the industry restart and future sustainable operations.

Has the need for digitization accelerated or do airlines now lack the money to invest in technology?

The airline industry has always had its fair share of digital innovation incorporated in every part of the business, from the customer journey to operations to the back office.

Technological solutions, such as biometrics, modern tools for data analytics, the Internet of things, and so forth, have the potential to airlines.iata.org

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We will make every possible effort to keep Aegean among the most resilient carriers in Europe

Do you have messages for your staff, customers, and industry colleagues given the uncertain future we all face?

The airline industry has witnessed quite a few crises and most probably there will be many others in the future. You never know when the next one will come and with what severity.

But what you can do is make every possible effort as an organization to be on a solid footing and improve competitiveness so that you can, to the extent possible given the severity of each crisis, cope with it, and emerge more efficient and competitive.

2021 – 01 Airlines

26/03/2021 08:19

Advertising Feature: Get-e

Alexander van Deudekom, CEO, Get-e

Into a new era

How Covid-19 is driving innovation in the aviation industry. By Alexander van Deudekom, CEO, Get-e

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It has been well documented how the pandemic has fractured the established certainties of the aviation and travel industry. What is less reported has been the response: an upsurge of adaptation, creativity, and innovation to prepare for what comes next.

As the pandemic continues to force change in all aspects of society, innovation is playing a starring role in enabling us to respond and rebuild for recovery.

Digitalization to the rescue Innovation and adaptation does not always come in the form of ground-breaking or inspirational developments. The pandemic has also forced businesses to take stock and dispense with archaic inefficiencies, and as a result, has highlighted the key role digitalization has to play.

For almost all industries, embracing digital solutions allows for the streamlining of many administrative burdens, freeing up time and money for other business developmentfocused activities. In aviation specifically, and as airlines emerge from the Covid-19 pandemic, it is more important than ever to be able to operate with leaner budgets and resources. To do this effectively, intelligent tools can be used to outsource a host of jobs.

In Get-e’s case, ground transportation, crew airport transfers and flight disruption management. In the past year, the ability to

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use technology to manage these processes has been particularly helpful as airlines deal with reduced resources and staff levels.

For example, airlines need to be sure that their aircrew will arrive at the airport on time, with sufficient time to go through their flight briefing and then to the aircraft without causing delays for passengers. Currently, crew managers have to source different transport companies for all regions they are operating within, and book taxis and hotels for each member of the team, which can lead to fluctuating prices, limited overview and a large number of invoices to manage each month. This is costly, and limits flexibility if there are any last-minute changes.

Get-e’s crew transportation platform is a simple digital solution that automates the manual processes behind crew transportation, bringing airlines a reliable product that allows crew managers to book

and track crew transfers quickly and efficiently.

Crucially, moving crew management online gives airlines transparency over incurred costs, and because of our global vetted supply and volume, we can source the most competitive pricing for airlines, taking this burden from their hands.

And, in an increasingly digital, AI-powered world, Get-e is dedicated to the highest level of customer service, ensuring there is always a person on the other end of the line when needed. Our operations team, comprising vastly experienced and knowledgeable aviation professionals, can speak 12 languages, with Spanish and English staffed 24/7. All rides are monitored through GPS and suppliers are contacted if inactivity or potential obstacles are detected and if needed, provide alternative arrangements.

Now is the time for disruptive products to enter the market If there ever was a time for disruptive technology, it is now. An unpredicted outcome of the crisis is that it has motivated

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Advertising Feature: Get-e

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organizations to accelerate plans for technology development, and governments to waive regulatory requirements, ushering in a new era of post-pandemic product innovation.

In fact, the downtime experienced by the aviation industry led to a surge in digital solutions being developed, designed to support airlines as they prepare for a resurgence in travel.

At Get-e, we created our disruption management platform, giving airlines a ready-to-go transportation and hotel and accommodation (HOTAC) partner to support passengers affected by flight diversions at the touch of a button.

For airlines, passenger satisfaction is paramount. If an aircraft must divert to a different airport for whatever reason, getting those passengers to their planned destination quickly and efficiently is important, chiefly for reputational management, but there are regulation and cost implications too. Before now, airlines have not had access to a single, intelligent system that manages the process of finding

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alternative transport, accommodation and catering when needed, and disruption management has therefore been a headache for airlines’ customer service and operations teams to manage.

Our platform easily integrates with airlines’ systems, enabling them to have full visibility over where their passengers and crew are at all times, and can quickly resolve unexpected issues. The technology can also be used to provide travellers with push notifications through an airline’s app, keeping them updated about the details of their onward journey. Not only does this save airlines money in terms of administration time and possible compensation, but also ensures passengers leave with a positive view of the airline, even if there is disruption.

Communication is a key component for

reputation building – keeping passengers updated when airline disruption occurs is crucial and going digital is an easy way of getting information to those affected quickly.

We believe this new product will completely revolutionize airline disruption management, and alongside many other developments expected in the market, work together to create a smoother overall experience for passengers.

What’s more, we have built the technology to be easily tailored for airlines’ different business goals, and we can work together with carrier partners to develop a product and service suite that will best meet their needs. Our model can work with any size of airline as customers are billed for the mileage completed by the transfer of aircrew or passenger, as opposed to the number of transfer requests made. Therefore, smaller airlines would not experience disproportionate costs for the Get-e service.

Customer confidence and reputation will be vital as the travel industry gears up again, and having a digital approach to processes such as disruption management will set airlines one step apart from their competitors.

2021 – 01 Airlines

26/03/2021 08:20

Safety

Safety first in industry restart

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Aviation safety had its challenges in 2020 but the focus has shifted to the anticipated resurgence of travel WORDS: GRAHAM NEWTON

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T

he coronavirus pandemic had a catastrophic effect on the industry. But all participants worked closely together to ensure that safety was not compromised.

There were many challenges, of course. On the personnel side, various licenses had to be extended as there was no practical way to re-certify and solutions had to be found that kept skills updated during reduced operations.

There were numerous issues regarding aircraft too. At one point, it is estimated that some 15,000 were parked—the majority of the world’s fleet.

“That had never been seen before and we had to work out how they could be maintained and then returned to service in a safe but efficient manner,” says Gilberto Lopez Meyer, IATA’s Senior Vice President, Safety and Flight Operations.

Other safety issues were not so obvious. The lack of demand caused by global travel

restrictions often meant low load factors for those aircraft that did manage to take to the skies. As a consequence, these aircraft were much lighter than usual and exhibited different flight characteristics. Additionally, with reduced air traffic levels, aircraft were often being given direct approaches by air traffic controllers, providing crew with less time to configure the aircraft for approach and landing.

IATA was quick to identify a rise in unstable approaches through its Flight Data eXchange global database of de-identified flight data and issued a safety notice. By the end of the year, data showed that the number of unstabilized approaches for passenger aircraft in 2020 were back in line with prior years.

Airlines also had to be aware of crew fatigue.

The massive changes to schedule—often at short notice—coupled with unyielding quarantine requirements inevitably affected working patterns. On long-haul flights it was often necessary to carry deadheading crew that would operate the return flight, causing headaches for crew schedulers.

Non-roster related fatigue considerations also had to be factored into equations. Living circumstances changed for many, including the home schooling of children, gym closures, and loss of income. This potentially affected crews’ physical and mental fitness.

The IATA Guidance for Managing Crew Fatigue During a Crisis has detailed recommendations, and a Q&A section resulting from the webinars conducted in collaboration with ICAO. Even IATA’s Operational Safety Audit (IOSA) had to adapt to coronavirus realities. The IOSA Oversight Council and its task forces, made up of over 100 airline experts and interested authorities as the Federal Aviation Administration (FAA), soon agreed on a support program.

Measures are tightly controlled but include registration extension. A reduced scope remote audit is also possible though the registration lasts for just 12 months rather than the usual

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two years. Airlines must also complete a questionnaire every 60 days and with a carrier’s approval its answers can be shared with partner airlines and authorities.

“Because IOSA is the industry standard, we had auditors in about 40 countries,” says Lopez Meyer. “That meant they could carry out their job without traveling.”

Preparing for the restart

As travel grows during 2021, new challenges will arise. It is not only about getting aircraft ready to fly but also bringing back pilots, air traffic controllers, ground crew, cabin crew, and countless others. Many will not have worked at all or only intermittently in the past 12 months, but all must be fully compliant with safety standards from day one.

To assist, IATA has set guidelines for competency-based training, which focuses on ability rather than prescriptive requirements.

The incremental nature of the training means it can be set to individual requirements and so facilitate the speediest return to the industry.

Meanwhile, maintenance will be a complex undertaking. Lopez Meyer explains: “Maintenance is based on the number of flying hours, flying cycles or calendar time, but the uncertain nature of travel demand and potential inactivity makes it very difficult to plan correctly.”

The European Aviation Safety Agency (EASA) has reported a significant increase in unreliable speed and altitude indications during the first flights following an aircraft leaving storage. This has led to a number of Rejected Take-Off (RTO) and In-Flight Turn Back (IFTB) events.

Contaminated air data systems have been blamed, often due to the accumulation of foreign objects, such as insect nests, in pitot/static systems.

The IATA Accident Database (ADX) highlights the risk of Loss of Control Inflight (LOC-I) as a high-risk outcome where unreliable airspeed has been identified as a causal factor in aviation accidents.

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Sanitization

Another area that will be scrutinized regularly is aircraft sanitization. Harmonized solutions will be key to restoring consumer confidence and demand. But the impact on aircraft operations and safety must be considered carefully. Of course, aircraft were cleaned previously, but disinfecting them 6-7 times a day is a requirement on a totally different level.

The chemicals used need to be monitored.

Typically, there is a high alcohol content that could cause damage to parts and certainly necessitates better ventilation. Cleaners need to be trained in using the disinfection materials and onboard crew have to be protected.

IATA has released Cleaning and Disinfection guidelines and airlines can also follow a Health Safety Checklist to ensure readiness.

Liaison desks

Generally speaking, Lopez Meyer says regulatory authorities have been quick to respond to the challenges highlighted by IATA and he anticipates continued cooperation in the year ahead.

Likewise, industry partners have collaborated as never before, and IATA has been instrumental in coordinating action. Airports and airspace have been closed, for example, making flight plans complicated. Alternate airports are always required but with many secondary facilities shut, fulfilling this obligation has been difficult.

IATA’s Liaison Desks at the FAA, Eurocontrol, and in China’s Air Traffic Management Bureau have been important tools in facilitating this work and keeping safety paramount in everyone’s thoughts.

“The crisis has […] also highlighted plenty of opportunities for improvement and we stand ready to quickly implement anything that raises safety levels,” Lopez Meyer concludes.

15,000

Safety

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At one point some 15,000 aircraft were parked—the majority of the world’s fleet

2021 – 01 Airlines

26/03/2021 08:21

IATA Opinion: Sebastian Mikosz

Working to restart the world Sebastian Mikosz, Senior Vice President for Member and External Relations says governments must provide greater clarity for the industry restart

A

ILLUSTRATION: SAM KERR

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s 2020 was ending we started becoming hopeful.

The aviation industry was daring to hope that, perhaps, the winter season would see a slow recovery. This was spurred by announcements that vaccines were being approved. Unfortunately, the news since Christmas, instead of gradually improving, has become worse. More infectious mutations of the virus have been discovered, and the response of governments has been simple: strengthen lockdowns and increase travel restrictions.

Across much of the world, pre-departure testing has been introduced, but with no concessions on quarantine requirements.

That is, of course, destroying demand for air travel, which remains at cripplingly low levels. So, despite the big hope brought by the vaccine, in the short term the overall picture is really grim.

IATA continues to make its case strongly to governments. For us, systematic testing is a means to reopen borders safely, without quarantine. However, it has become clear that governments see vaccines, rather than testing, as the game changer.

For the airline industry this approach is problematic. Why? Because if we rely solely on vaccines it could be years before we see the full reopening of international traffic. Therefore, it’s not unfounded to ask ourselves the following questions: will 2021 be even a little better than 2020 for the air transport industry? When will countries really allow a restart of international air travel?

Primarily, we need to support governments, regulators, and sanitary authorities to agree on such benchmarks as testing capacity to create the conditions for this reopening. The best way to achieve this is to focus our advocacy on roadmaps for restart.

We need to map multiple processes and illustrate the possible

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roads to restarting traffic at a global level. It may seem a simple process, but it is not. Closing and restricting is always much simpler than opening and allowing. We need to plan the restart first. This will require redesigning networks, opening sales, deciding which planes to use, and which to keep on the ground.

We will also need to carry out additional maintenance and plan which crews will be operating and solve many other issues.

Finally, and most importantly, we need clarity on the sanitary requirements. To do what is necessary, who will be allowed to board a plane and to travel without quarantine on arrival?

As the middleman between passengers and governments, we must ensure that travelers not only have the correct documentation to enter their destination country but that they also have secure means to transfer their personal and private data.

We made significant progress towards this with the development of a mobile phone app called IATA Travel Pass. The app is an industry solution that will help travelers manage vaccine or testing requirements with accurate information, secure identification, and verified data. Several carriers including Singapore Airlines, Emirates, Etihad, and Qatar Airways are piloting IATA Travel Pass, and we expect to roll it out before the end of Q1 2021. This will allow us to move from theoretical standards to practical implementation to get travel moving again.

But the roadmap cannot be to simply wait until the entire world is vaccinated. Nor can we persist with a framework where restrictions immediately come back every time a new variant of COVID-19 is identified. We need to get beyond that and learn to live with the virus, which the vaccines and testing will allow us to do. airlines.iata.org

26/03/2021 08:21

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26/03/2021 08:33

ECO PIONEERS FLY E2 We’d like to congratulate KLM Cityhopper on the delivery of the E195-E2, the first of 25 aircraft the carrier has on order. The KLM Group is the largest operator of E-Jets in Europe and has led the way in sustainable operations, cutting carbon emissions by 30% per pax/km since 2005.

By 2030 their ambition is to reduce their carbon footprint by at least 50% per pax/km. The introduction of the E2, the cleanest and quietest aircraft in single aisle, will help to ensure this pioneering carrier achieves this ambition and strengthens their outstanding sustainability credentials.

E195-E2 ADVANTAGES 31% CO2 EMISSIONS REDUCTION PER SEAT COMPARED TO THE E190 60% QUIETER COMPARED TO THE PREVIOUS GENERATION E-JETS

embraercommercialaviation.com #E2sustainability

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24/02/2021 08:34 10:09 26/03/2021