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Strong Air Travel Points to Economic Growth Returns- IATA

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The International Air Transport Association (IATA) announced global passenger traffic results for November 2016 showing the strongest demand growth in nine months. Total revenue passenger kilometers (RPKs) rose 7.6% compared to November 2015. Capacity (available seat kilometers or ASKs) increased by 6.5%, and load factor rose 0.8 percentage points to 78.9%.

“Stronger demand for air travel reflects—and is supporting–a pick-up in the global economic cycle. As the stimulus effect of lower oil prices recedes in the rear view mirror, the strength of the economic cycle will play a key role in the pace of demand growth in 2017,” said Alexandre de Juniac, IATA’s Director General and CEO.     

International Passenger Markets
November international passenger demand rose 8.0% compared to the year earlier, with airlines in all regions showing growth.

Total capacity climbed 6.8%, and load factor edged up 0.9 percentage points to 77.1%.

European carriers saw demand increase by 8.3% in November 2016, while traffic grew at an annualized pace of 12% over the past five months or so.

This suggests that the disruption caused by terrorism and political instability has lifted, against a backdrop of a growing Eurozone economy. Capacity rose 6.8% and load factor climbed 1.1 percentage point to 80.8%.

Asia-Pacific airlines’ November traffic also climbed 8.3% compared to the year-ago period. Capacity increased 7.1% and load factor rose 0.8 percentage points to 77.4%. The strong upward trend in demand has slowed recently but it is not clear whether this is a longer-term development or just a brief pause.

Middle East carriers led all regions with a 12.2% demand increase. But the upward trend in the region’s seasonally adjusted traffic has paused, with November’s level coming in unchanged from that of July. Capacity rose 11.6% and load factor rose 0.3 percentage points to 68.7%.

North American airlines’ traffic climbed 1.5% in November. Traffic across the Pacific is growing rapidly but North Atlantic demand is moderating. Capacity rose 1.2% and load factor edged up 0.2 percentage points to 78.7%.

Latin American airlines saw November traffic climb 7.3% compared to November 2015. Capacity increased by just 2.9%, pushing load factor up 3.4 percentage points to 82.2%. The upward trend in international traffic has remained strong despite difficult conditions on the North America-South America route, supported by healthy international demand within South America.

African airlines experienced an 8.2% rise in demand compared to November 2015. Economic conditions in much of Africa remain challenging, particularly in the biggest economies of Nigeria and South Africa, but the upward trend in seasonally-adjusted passenger traffic has reasserted itself more recently, supported by strong demand on routes to and from Asia and the Middle East. Capacity rose 5.1% and load factor climbed 1.9 percentage points to 66.3%.   

Domestic Passenger Markets
Domestic travel demand rose 7.1% in November 2016 compared to the same month in 2015, but results continued to vary widely, with China, India and Russia showing double-digit growth while demand declined in Brazil and Japan. Domestic capacity climbed 6.1%, and load factor improved 0.8 percentage points to 82.2%.

Air travel in Japan declined 0.5% in November. Traffic has trended sideways in seasonally-adjusted terms for the best part of two years, against a backdrop of weak momentum in consumer spending.

Russia’s 15.5% increase largely reflects favorable comparisons with the year-earlier period following the collapse of Transaero in autumn 2015. But the recovery in seasonally-adjusted domestic traffic is continuing, alongside signs that the country’s economic recession is easing.

The Bottom Line:
“The airline industry continues to deliver strong results. In 2017, for a third consecutive year, the industry’s return on invested capital will exceed the cost of capital. Passengers benefit from the industry’s success. Travel has never been more accessible—with great fares, many options and more destinations. Nevertheless uncertainty lies ahead.

“The threat of terrorism, questions over the durability of the economic upswing, rising oil prices and increasing protectionist rhetoric are among the concerns. The industry has reshaped itself and strengthened its resilience to shocks. We should see another solid year of collective profitability for the airlines in 2017. But we must be vigilant,” said de Juniac.

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FG to Partner Boeing to Launch National Carrier

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Sen. Hadi Sirika, Minister of State for Aviation, has said that the Federal Government is set to sign a Memorandum of Understanding (MoU) with Boeing on the establishment of a national carrier for Nigeria.

Sirika, in his tweet on his handle,@hadisirika on Thursday, said the MoU would be signed during the forthcoming Third ICAO World Aviation Forum (IWAF) in Abuja.

The minister also disclosed that Airbus of France had indicated interest in partnering with the government on the proposed carrier and establishment of Maintenance, Repair and Overhaul facility in the country.

He said that the government and Airbus would also discuss further during the IWAF 3 that would hold from Nov. 20 to Nov. 22.

“Airbus signified interest in our National Carrier and our MRO, we will discuss further during the upcoming ICAO forum,’’ he said.

It would be recalled that the minister had expressed President Muhammadu Buhari’s administration determination to establish a national carrier and MRO in a bid to reposition the nation’s aviation sector.

He had since announced the appointment of transaction advisers for the national carrier and MRO.

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NIPOST at Retreat, Rejigs to Remain Afloat

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Nigerian Postal Service (NIPOST) is repositioning the post office as a critical national infrastructure to utilize its extensive network penetration for social and financial growth, Bisi Adegbuyi, postmaster general of the Federation has said.

 

Adegbuyi at the NIPOST zonal strategic management retreat in Kaduna, said that the retrest, will help determine the true position of NIPOST strategic milestones in the journey towards actualization of the set objective.

 

He said, “The retreat will provide us with the opportunity to x-ray our position as we analyze our performance so far against set objectives with a view to taking remedial measures in the area of sharp deviations and as well re-invest a new wheel where necessary in our march to the promise land.

 

“In the last five months of uninterrupted strategy implementation, a lot has happened, the corporate restructuring is taking shape, the business units are reshaping their products, the zones are now on ground supported by their districts while the Chief Operating Officer has taken full control of the operations for efficiency.

 

He observed that the greatest challenge to the relevance of NIPOST is in the area of product offering adding that, “For a long time NIPOST has remained a mono-product organization focusing mainly on mail and even that too is challenging.”

 

Malam Abdulrahim Baba, director, Strategy and Business Development, said the post office can help farmers and small businesses scale up their production by repackaging their products so that they can acquire market instead of letting their products rot away.

 

He added, “NIPOST will put internet facilities and computers in our rural post offices so that the children living in the rural areas can learn how to use the computer and the internet because presently, the computer and internet is used in all sectors.”

 

He informed that the NIPOST presently has seven different business from the one that was available in the past adding that, “We have cut down from 36 territories to seven zones to conserve resources and provide good services to our customers in a bid to create a new playing field.”

 

Malam Nasir El-Rufai, governor of Kaduna state, represented by Engineer Mahmud Hassan, commissioner, Kaduna state Ministry of Works and Transport, urged participants to live up to expectation and the sky is their limit.

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Taxify Set to Launch Services in Abuja

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By peter oluka

Taxify, the fastest-growing ride-sharing platform in Europe and Africa, launches in Abuja with hundreds of driver-partners signed up to the platform and ready to accept rides all across the city.

To celebrate, Taxify is offering a 40% discount to riders during the month of November.

Uche Okafor, the operations manager, comments:  “Abuja is an exciting and thriving market with an outgoing population for private urban transport. We’re very excited to launch here and have a solid team on ground.

“We are confident that Taxify can effectively contribute to healthy competition by improving the quality of service and lowering the prices for the end customer.”

Taxify takes only 15% commission from its drivers, compared to the 25% that competitors take.

The lower commission allows Taxify to offer lower prices for riders and ensure that drivers still keep more money in their pockets.

Taxify treats our drivers better so that they can in turn treat our riders better. Taxify does this by ensuring that drivers are able to earn more driving on our platform than on any other platform.

This combined with our end to end support ensures that our drivers are happier driving on Taxify and are ultimately able to provide better quality service for riders. Taxify also believes in providing exemplary customer service to riders, with a local customer support team that offers real time over the phone support.

Taxify is an international urban ride-sharing platform founded and headquartered in Tallinn, Estonia.

Taxify is operating in 20 countries in Europe, the Middle East, Africa and Central America. Taxify has a global team of over 300 employees, and is considered one of the fastest-growing ride-sharing platforms in Europe and Africa.

In August 2017, Taxify announced a strategic partnership with Didi Chuxing, the world’s leading mobile transportation platform. The Taxify app is available on iOS and Android.

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