15 minute read
IATA and industry update
Digest
Digitization needed for smooth travel industry restart
Governments must move quickly
to adopt digital processes to manage travel health credentials (COVID-19 testing and vaccine certifi cates) or face severe impacts:
Pre-COVID-19, passengers, on average, spent about 1.5 hours in travel processes for every journey (check-in, security, border control, customs, and baggage claim). Current data indicates that airport processing times have ballooned to three hours during peak time with travel volumes at only about 30% of pre-COVID-19 levels. The greatest increases are at check-in and border control (emigration and immigration) where travel health credentials are being checked mainly as paper documents. Modeling suggests that, without process improvements, the time spent in airport processes could reach 5.5 hours per trip at 75% pre-COVID-19 traffi c levels, and 8 hours per trip at 100% pre-COVID-19 traffi c levels.
“Without an automated solution for COVID-19 checks, we can see the potential for signifi cant airport disruptions on the horizon. Already, average passenger processing and waiting times have doubled from what they were pre-crisis during peak time—reaching an unacceptable three hours … Nobody will tolerate waiting hours at check-in or for border formalities. The technical solutions exist. But governments must agree digital certifi cate standards and align processes to accept them. And they must act fast,” said Willie Walsh, IATA’s Director General.
If governments need COVID-19 health credentials for travel, integrating them into already automated processes is the solution for a restart. This would need globally recognized and interoperable digital certifi cates for COVID-19 testing, and vaccine certifi cates.
Willie Walsh, Director General, IATA
Aircraft operations must not be politicized
IATA called on the European Aviation Safety
Agency (EASA) to maintain the critical separation between politics and aviation safety issues.
The call followed the latest developments following the incident when Ryanair FR4978 was intercepted over Belarus Airspace and forced to land in Minsk. On June 2, EASA replaced its recommendation (Safety Information Bulletin) for European airlines to carefully assess the risk of fl ying in Belarus airspace with a blanket prohibition (Safety Directive) on European aircraft entering Belarus airspace.
“Aviation safety must never be politicized,” said Willie Walsh, IATA’s Director General. “IATA condemned the actions of the Belarus government and called for an independent investigation. Banning European aircraft from using Belarusian airspace with a Safety Directive is also a politicization of aviation safety. This is a retrograde and disappointing development.”
On May 23, Ryanair fl ight FR4978, while overfl ying Belarus en-route from Athens to its fi nal destination, Vilnius, was made to divert and land in Minsk by Belarusian authorities.
In the immediate aftermath of the incident EASA issued a Safety Information Bulletin advising airlines to avoid operations in Belarusian airspace. This did not ban European aircraft from using the airspace but required any airline that continued to do so to satisfy themselves that the safety of the aircraft, passengers, and crew, was not at risk. IATA supported this measure as a proportionate response.
HOW TO OPEN TRAVEL BORDERS THROUGH THE USE OF DATA
Data-driven decisions must
manage the risks of COVID-19 when reopening borders to international travel, according to IATA. Strategies without quarantine measures can enable international travel to restart with a low risk of introduction of COVID-19 to the travel destination.
Evidence shows that vaccination protects travelers from serious illness and death, and carries a low risk of introducing the virus into destination countries:
The Robert Koch Institute (RKI) concluded that vaccinated travelers are no longer signifi cant in the spread of the disease. The European Centre for Disease Control and Prevention (ECDC) issued interim guidance on the benefi ts of full vaccination stating “the likelihood of an infected vaccinated person transmitting the disease is currently assessed to be very low to low.” The US Centers for Disease Control and Prevention (US CDC) stated that “with a 90% eff ective vaccine, pre-travel testing, post-travel testing, and 7-day self-quarantine provide minimal additional benefi t.”
Data-driven travel:
Unvaccinated people face potential barriers to travel
2.2%
365,895 tests were conducted between Feb 25 and May 5 on those arriving to the UK, who were PCR negative before travel. Only 2.2% tested positive for COVID-19 infection during universal quarantine measures after their arrival
ANOTHER SINGLE EUROPEAN SKY FAILURE
IATA expressed disappointment at the adoption
of the general approach on the Single European Sky 2+ proposal (SES) by the European Council, which will entrench the failure of monopoly air navigation service providers to tackle emissions, delays, and costs. Many key provisions of the Commission proposals on SES2+ have been watered-down by the Council. This will mean the ineffi ciencies in the air navigation network that result in 6%–10% in avoidable carbon emissions will continue.
VACCINATED
PASSENGERS KEY TO GLOBAL BEST PRACTICE
IATA applauded the growing number
of countries making data and evidencedriven decisions to open their borders to vaccinated travelers. More than 20 countries have wholly or partially lifted restrictions for vaccinated travelers.
Germany is among the latest countries to make quarantine alleviations for vaccinated travelers. Vaccinated travelers are no longer subject to quarantine measures (except from certain high-risk countries). Germany has also removed quarantine requirements for travelers with a negative COVID-19 test result (except from certain high-risk countries).
The decision followed a review of scientifi c advice from the worldrenowned Robert Koch Institute (RKI), which concluded that vaccinated travelers are no longer signifi cant in the spread of the disease and do not pose a major risk to the German population.
Specifi cally, it stated that vaccination reduces risk of COVID-19 transmission to levels below the risk from a false negative rapid antigen test.
Optimism for travel demand as borders reopen
IATA and Tourism Economics
released a long-term view for postCOVID-19 passenger demand recovery that demonstrates that people remain eager to travel in the short and long term.
Forecast highlights include: In 2021, global passenger numbers are expected to recover to 52% of pre-COVID-19 levels (2019). In 2022, global passenger numbers are expected to recover to 88% of pre-COVID-19 levels. In 2023, global passenger numbers are expected to surpass pre-COVID-19 levels (105%). By 2030, global passenger numbers are expected to have grown to 5.6 billion.
That would be 7% below the pre-
COVID-19 forecast. Beyond 2030 air travel is expected to slow, due to weaker demographics and a baseline assumption of limited market liberalization, giving average annual growth between 2019 and 2039 of 3.2%. IATA’s pre-COVID-19 growth forecast for this period was 3.8%.
“I am always optimistic about aviation. We are in the deepest and gravest crisis in our history,” said Willie Walsh, IATA’s Director General. “But the rapidly growing vaccinated population and advancements in testing will return the freedom to fl y in the months ahead.
“And when that happens, people are going to want to travel. Aviation is ready. But I don’t see governments moving fast enough.
THE COST OF TESTING MUST NOT STOP TRAVEL RESTART
IATA called on governments
to ensure that high costs for COVID-19 testing don’t put travel out of reach for individuals and families.
An IATA sampling of costs for PCR tests (the test most frequently required by governments) in 16 countries showed wide variations by markets. Findings include:
Of the markets surveyed, only France complied with the World Health
Organization (WHO) recommendation for the state to bear the cost of testing for travelers Of the 15 markets where there is a cost for PCR testing to the individual The average minimum cost for testing was $90 The average maximum cost for testing was $208.
Even taking the average of the low-end cost, adding PCR testing to airfares would dramatically increase the cost of fl ying for individuals. Pre-crisis, the average one-way airline ticket, including taxes and charges, cost $200 (2019 data). A $90 PCR test raises the cost 45% to $290. Add another test on arrival and the one-way cost would leap 90% to $380. Assuming that two tests are needed in each direction, the average cost for an individual return-trip could balloon from $400 to $760.
By Roy Hughes, Commercial Director at Get-e
Hearing the hunger for hotels
Why Get-e is introducing hotels into its crew transfer off ering
At Get-e, we employ our adaptable technology to continuously improve and evolve our product off ering using feedback and input from our airline partners. As a result, we are currently developing an integrated hotel (HOTAC) proposition alongside our global crew transportation services as an automated solution for both crews and disrupted passengers.
What does Get-e currently provide?
Get-e supports carriers by acting as a one-stop-shop. Crew transfer bookings are quick and easy to manage on the Get-e platform, which is particularly important when booking ad-hoc transfers. The booking status can be tracked online, while the location of the driver is available before and during the transfer. The visibility and monitoring provided by the Get-e platform enhances duty of care to the air crews, with COVID-safe and secure transport delivered from quality vetted, fully insured, and experienced transport suppliers.
There is no doubt that the pandemic has forced airlines into a signifi cant rethink as to how to optimize their operations at a lower cost and with less resource. A key consideration for Get-e is the ability to support and be part of the restart strategy of our airline partners. Our customers have seen noticeable changes in their ability to book crew transfers quickly and effi ciently, enabling them to concentrate on core operational activities, which is much more diffi cult when these processes are being handled manually. We have found that the automation of crew transfers can reduce direct operational resources and hours required, on average, by the equivalent of up to fi ve full-time members of staff .
So why HOTAC?
Bringing HOTAC booking under our umbrella means that we can provide a much more seamless and holistic off ering to our customers. Airlines can arrange the airport transfer, accommodation and return journey in one place, with contract management of hotels all managed as part of a single, fl exible sourcing solution, saving administration cost and time.
The visibility and monitoring provided by the Get-e platform enhances duty of care to the air crews, with COVID-safe and secure transport. We match the best HOTAC suppliers to meet airline requirements and specifi cations with pre-auditing and reporting as standard. Our objective is to maximize crew satisfaction and the crew rest experience. In the event of any issue or query, emergency support is available 24/7.
Airline reputation management tools
This year, Get-e created a disruption management platform, giving airlines a ready-to-go transportation and HOTAC partner to support passengers aff ected by fl ight diversions at the touch of a button.
From our disruption management platform we are alerted of any fl ight disruptions such as diversions or severe delays and can arrange alternative transport and hotel accommodation. Using digital solutions across the value chain means that in the time between fi nding out about the diversion and the plane landing, transport can be sourced and booked—en route to the airport. This not only improves the passenger experience through minimizing delay but also reduces administration time and cost and the risk of passenger compensation claims.
To fi nd out more about Get-e’s crew transfer, HOTAC or disruption management platform, visit www.get-e.com, call +44 203 856 8655 or email operations@get-e.com.
Sajedah Rustom, Chief Executive Offi cer at AJW Technique & Tom de Geytere, Chief Sales Offi cer at AJW Aviation.
Advances in Aircraft Supply Chain Solutions
Aftermarket service providers in the aviation supply chain have long understood the need to help their customers improve effi ciency.
The reduced demand seen during the pandemic, where parts and component repair sales fell by 60-70%, propelled the streamlining of the supply chain to adapt to leaner, optimized fl eets.
As commercial travel swiftly moved to narrow-body aircraft, accommodating the reduction in passengers, a signifi cant increase in the retirement and subsequent surplus of wide-body aircraft inventory also emerged. Cargo became a lifeline with yields increasing by approximately 30% in 2020, creating new purpose with rapid passenger to freighter conversions. With business travel expected only to recover to 80% of pre-pandemic levels by 2024, airlines downsized their business models and cabin confi gurations appropriately.
Here at AJW Group, where our entire structure is designed around supply chain process steps, we heightened the design and development of smart digital solutions to meet customers’ evolving needs, including the support of many passenger to freighter conversions. We built digital tools and dashboards to closely monitor fl eet recoveries by customer and by platform to ensure our operations are synchronized with fl ying patterns.
We launched a responsive, interactive, and mobile customer portal, ensuring clients can access orders, view status on the go, and extract any related documents. It enables 24-7-365 interaction with support teams, regardless of location, with no transaction delay, full data, and process integration.
We also released our new eCommerce platform, AJW® eventory, for parts trading, where users can browse and purchase from our extensive inventory, including our ‘priced to move’ Outlet stock, with easy access to full paperwork trace, chat functionality, and the ability to ship via any chosen method and track the shipment in a few clicks. Furthermore, we are now working with third-party partners to list their inventory on our platform.
From an MRO point of view, we worked closely with airlines to ensure repair requirements are met with fl exible, cost saving solutions to conserve cashfl ow and manage just-in-time operations, given volatility of service. For example, at AJW Technique, our state-of-the-art MRO facility in Montreal, we launched a Quote and Hold program, where we evaluate and hold the customer repair until time of need, after which we activate the repair and deliver to the customer, ready for fl ight, on-demand.
AJW Technique has also designed logistical storefront solutions in Miami and Singapore, allowing customers to ship their components to a local address, minimizing the administrative burden that comes with international freight and customs documentation.
We also expanded our Safety cell thanks to increasing volumes of slides and raft repairs from renowned local carriers. We have run a successful fulfi llment model for many years, providing a cost-eff ective way to manage scheduled maintenance, reducing out-ofservice events, while maximizing life limits.
Digital transformation has been critical, especially in MRO environments where tribal knowledge of the workforce is extensive. With the goal of maximizing technicians’ component touch-time, AJW Technique has
Sajedah Rustom
also taken the leap of investigating tools to enable a digital shop fl oor. Examples include productivity trackers, automated payables and receivables, credit control automation, turnaround time gaming systems, performance management dashboards, piece parts provisioning models, and dynamic pricing algorithms. We have also tested asset location tracking using RFID and Bluetooth technology as a proof of concept. This allows technicians to have a full view of high value assets at their fi ngertips facilitating traceability and workfl ow management. Beyond RFID technology, we are also investigating other hands-free systems and collaborating with AJW Aviation on predictive maintenance discoveries also.
With our extensive spend leverage, we have successfully renegotiated service-level agreements with our major component OEM suppliers, improving supply and reducing costs. Forecasting incoming units combined with business intelligence data obtained from our airline customers has allowed us to proactively ramp up the supply chain for piece part, exchange pool, and inventory purchases alike. This ensures clear focus on aligning work infl ow with fl exed labor capacity and just-in-time material replenishment.
With over 100,000 exports a year, we work closely with our logistics partners to meet customers’ demands.
“Earlier this year we opened a new 35,000 sq. ft. warehouse in Milan, primarily to support easyJet’s EU operations,” says Tom de Geytere.
Sajedah Rustom adds: “We have recently launched our fi rst European MRO facility, AJW Technique Europe, located near Gatwick Airport. The new MRO begins with in the acquisition of a battery repair facility, strategically positioned to support European airline requirements.”
Advancing our supply chain process step model has driven effi ciencies at every level and with further enhancements planned, we are continuously improving integration within customer, partner, and supplier systems.
Since 1932, for almost 90 years, AJW Group has been transforming aviation effi ciency adapting dynamically and fl exibly, through recessions, wars, terrorism and now a global pandemic. We have holistically addressed the aviation supply chain from end to end, integrating internal data, processes, systems and culture, with that of our customers, suppliers and strategic partners to ensure exceptional delivery and unfailing performance.
