Recovery for some Asia-Pacific aviation players is taking off
Tay Peck Gek
MOST of Asia-Pacific’s aviation sector is waking up from the pandemic-induced slumber, eager to grab a slice of the air travel market and capture the pent-up demand. From airlines to airports, you read about how they are ramping up resources, dusting off the mothballed fleet, rehiring, and placing orders for new planes - all to welcome the air travellers who had been kept away by border closures for over 2 years.
Some are in a better financial shape as passenger traffic skyrockets, with travel-starved corporate people and leisure holidaymakers taking to the skies.
Here are 10 stories that give a glimpse into the varied paces at which each aviation player is recovering from the pandemic.
1. Flight bookings show pent-up travel demand, bodes well for Singapore’s air traffic target Singapore could be on track to restoring at least 50 per cent of pre-Covid airport traffic this year, going by the strong travel demand showing up in future bookings.
2. Changi Airport mulls adding new flights amid manpower constraints Amid an ongoing recovery in travel demand, approvals to mount some additional flights at Changi Airport in the coming weeks have yet to come through as ground-handlers grapple with a tight manpower situation.
3. Malaysia Airlines parent MAG turns the corner in FY21 with positive Ebitda of RM433m Malaysia Aviation Group (MAG), the parent company of national carrier Malaysia Airlines, achieved positive earnings before interest, taxes, depreciation and amortisation of RM433 million (S$137.2 million) for the financial year ended Dec 31, 2021, a turnaround from the RM1.76 billion loss in the previous year.
4. As Malaysia reopens to the world, airlines see healthy pick-up in flight bookings Nick Goh stepped into Kuala Lumpur International Airport recently, his first time entering Malaysia's main airport ever since the country shut its international borders in March 2020 to curb the spread of Covid-19.
5. Airports clogged with queues as travel rebound strains resources Understaffed airports and airlines from Australia to Europe are struggling to cope with a fresh rush of travellers, with long queues and flight disruptions expected to persist as the busy Easter weekend approaches.
6. Qantas orders Airbus jets to begin non-stop flights from Sydney in late 2025 Australia's Qantas Airways on Monday (May 2) announced a landmark Airbus SE order for 12 A350-1000 planes capable of the world’s longest commercial flights from Sydney to London as well as 40 narrowbody jets to renew its domestic fleet.
SEE ALSO
7. Sky-high airfares could moderate as demand normalises, more capacity is added, say experts Airfares have soared amid strong pent-up demand and re-opening of major South-east Asian economies but industry experts expect prices to eventually stabilise as airlines add more capacity and demand normalises.
8. Global airline capacity hits 2022 high as China demand rebounds: OAG Global airline capacity has surged to its highest level in 2022 this week because of a rebound in Chinese domestic demand despite extended lockdowns in Asia’s biggest aviation market, travel data firm OAG said on Tuesday.
9. Hong Kong eases Covid rules for aircrew, lifts overseas travel alert Hong Kong will shorten mandatory hotel quarantine for passenger flight crew to 3 days from 7, while cargo crew will be exempt, modest steps at unwinding coronavirus curbs that have turned the city into one of the world’s most isolated places.
10. Devaluation of airline miles likely with air travel resumption, but impact unlikely to be severe Relaxed restrictions mean air travellers are scrambling to get their hands on flight tickets after the Covid-19 pandemic halted leisure trips overseas for almost 2 years. With this, there is likely to be a surge in the redemption of airline miles, and it is up to airlines to manage the trade-off between "earn and burn".
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
