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Summer 2023

issue 44

This is conference season. From March to June, many of us are lucky enough to attend events such as Routes Americas, Routes Europe, IATA’s Ground Handling Conference, the IATA Annual General Meeting, Jumpstart Air Service Development Conference, Paris Airshow and ACI World/Europe’s World Annual General Assembly.

Thank you to the cities and citizens of Chicago, Lodz, Abu Dhabi, Istanbul, Milwaukee, Paris and Barcelona for hosting airports, airlines, handlers – and representatives from ARGS. Hopefully more of us than ever are offsetting our carbon emissions as we make our business travels.

The common theme is that air traffic is back, almost universally across the globe. The passenger and revenue tracking spreadsheets that have been plastered with red over the past few years are now green once more.
As Tony Harrington, our correspondent based in Brisbane, examines in this issue, the traffic growth engine that is China is firing again, finally. It has, as Tony observes, emerged from its long Covid, on both the domestic and international fronts. Analysts say that China’s air travel market will recover fully by 2025.

Overall, the Asian powerhouse of travel demand will pick up where it left off in 2019, surging again for the remainder of this century. No doubt, Routes World, being held in Istanbul from 15-17 October, will see a return of the Chinese hubs eager to reclaim airline capacity that has been diverted to Europe, Africa, or the Americas.

The picture of traffic recovery was clear in Chicago and Lodz too. As is common in a post-crisis period, the winners are often the most agile and the ones with the lowest costs. In both continents, low-cost carriers are gaining ground. Ryanair in Europe and Spirit Airlines in the USA are great examples of carriers able to grab opportunities to sprout new connections at speed.
However, there are challenges. In the USA, the recovery is uneven, coming as it does amidst a continued pilot shortage, which has led to the elimination of regional airline flights to 300 smaller and mid-sized cities.
In Europe, the market continues to be driven by leisure and VFR demand, and business travel is lagging, with ACI Europe’s Olivier Jankovec seeing a structural trend in corporate travel as it is increasingly being decided on sustainability criteria that reflect pressures from shareholders, consumers and society.

One of the most poignant presentations in Lodz was from Oleksiy Dubrevskyy, Chief Executive of Kiev Boryspil International Airport, who attended Routes Europe to explain how the airport intends to reopen as soon as the war in Ukraine ends.
Welcome as it is, the abrupt traffic recovery of last summer 2022 caused chaos in some regions. The talk in Abu Dhabi at the IATA IGHC centred on the ability of the industry to cope this year. Everyone said they are confident the industry can manage the uptick. The impression was there are still plenty of fingers being crossed that it will.
For all players in the services industry getting through this summer is only the first challenge. The issue of recruitment and retention is pressing and will remain for several years. Wage inflation is commonly in the double-digit range and competition for staff is raging at many airports.

ARGS will report on all these issues as they ebb and flow over the course of this year, and more. We look forward to continuing to engage with colleagues at events – including the 2nd Airport Services Association Leadership Forum that will be held in association with ARGS in Athens on 20-22 September.

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Featured in this issue

  • Air Serbia’s Chinese mission

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  • AOTGA advances in Thailand

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  • Brussels shifts strategy

    With traffic recovering strongly in 2023, Brussels Airport has kicked off a new strategic plan, dubbed Shift 2027. Piet Demunter, Chief Operations Officer, explains the thinking to ARGS Editor Mark Pi...

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  • China emerges from its long Covid

    China’s air travel market has been hit harder than most during the pandemic. In this in-depth analysis, Tony Harrington examines how the country is recovering on the domestic and international front...

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  • Out of the woods

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  • Menzies targets emerging markets

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  • Routes signals the rebound

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  • Smooth operators

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    dnata, the stand-alone ground, catering and travel services arm of the mighty Emirates Group, is growing in a measured way, on its own terms. Steve Allen, Chief Executive of the dnata Group, discusses...

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    While dnata returned to profitability in its last financial year of 2021-22 after a heavy loss at the peak of the Covid impact, there are inflation headwinds and cost pressures in many markets today, ...

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  • United grabs top spot

    United Airlines claims to have managed the downturn better than most, not making any pilots redundant and building the largest new-airplane order book of any airline in aviation history. Those claims...

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  • From red to green

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  • Transatlantic boom time

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  • Kiev strikes defiant tone

    When Russia invaded Ukraine on 24 February 2022, Kiev Boryspil International Airport shut down. Oleksiy Dubrevskyy, the airport’s Chief Executive, spoke in Lodz “Our strong and main message to ...

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