      IATA said that passenger traffic on international markets showed clear signs in July of being damaged by the deepening economic weakness becoming evident now in Europe and elsewhere.
      Growth slowed to a 5-year low of just 1.9% in July, following first half growth close to trend at 5.4% and growth of 7.4% in 2007.
      IATA also said that air cargo weakened to a much greater extent than passenger markets in July with a -1.9% decline, the second consecutive month of market shrinkage.
      “This partly reflects temporary losses for Chinese airlines as a knock-on effect of the visa restrictions.
      “However, it also suggests world trade is slowing sharply as economic weakness widens.”
      IATA is now forecasting net losses will total $5.2 billion this year and that a further $4.1bn will be lost in 2009. Other points brought forward include:
            * Oil prices have fallen back from $147/b peak but expected to stay relatively high at $113/b this year and $110/b in 2009.
            * Fuel bill will rise to $186bn (36% opex) this year and $223bn (40% opex) in 2009.
            * Oil prices down because economic growth outlook much weaker, particularly for 2009.
            * Costs are not as high as feared in previous forecast, but downside is that traffic and revenues are weaker.
            * Traffic growth revised down significantly from 3.9% to 2.8% this year and 4.5% to 2.9% in 2009.
            * Airlines responding by restructuring which will cut U.S. capacity 3.4% and limit global capacity growth to 2.2% in 2009.
            * But weaker economic environment and relatively high oil prices limit reduction of losses in 2009 to $4.1bn.
      “Spot oil prices fell back $30 a barrel from their peak of $147/b in July, as part of the futures market-driven
bubble generated in May-July was deflated by profit-taking and growing concern about economic weakness.
      “The much weaker economic outlook has led to a fall in all commodity prices and few now expect oil prices to return to July peaks over the next 18 months.
      “Some major forecasters are now projecting oil prices at $91- 94/b in 2009.
      “Oil futures markets have fallen from 2009 prices of over $140/b to around $120/b.
      “Our oil price forecast, based on a consensus of experts, is $110/b for 2009 following an average of $113/b this year.
      “The price of oil is still very high, implying jet fuel prices of $136/b in 2009. “Moreover, hedging will offer less protection.
      “As a result the fuel bill is forecast to rise to $186 billion or 36% of operating costs this year, but then further to $223 billion or 40% of operating costs in 2009.
      “IATA also notes that profitability deteriorated dramatically in the first half of 2008.
      “Results from a sample of 28 major airlines show operating profits have fallen from $7.6 billion in the first half of 2007 to $2.3 billion in the first half of this year.
      “The decline of net profits has been even sharper with losses of $2.7 billion in the first half of 2008.
      “The largest deterioration, with net losses so far this year of $2.5 billion, has been for U.S. airlines.
      “The U.S. industry has been sharply squeezed from rising fuel costs and shrinking domestic markets.
      “Relatively low hedging levels left airlines fully exposed to the rise in dollar fuel prices, while the collapse to 28 year lows in U.S. consumer confidence led to a fall in travel on domestic markets.
      “The deterioration of operating profits has not been as severe for airlines in other regions.
      “During the first half of the year hedging and U.S. dollar weakness provided some offset to the rise in fuel prices.
      “Moreover, economic growth started the year strongly in Europe and Asia.
      “That growth is now slowing sharply and, although fuel prices have fallen, hedging levels are diminishing and the U.S. dollar is strengthening.
      “Results so far are consistent with our new forecast for industry net losses this year of $5.2 billion.”

Macau Jetts To Africa

     Last month Macau International Airport successfully handled ten charter freighter services from Macau to Angola.
     The occasion was historic as the first time for the airport to realize operation of full freighter services from Macau to a Portuguese language country in Africa.
     Singapore-based Jett8 Airlines Cargo carried out the charter freighter operation, shipping approximately 900 tons of cargo to Angola with its Boeing 747-200F freighter flights.
     Established in March 2006, Jett8 Airlines Cargo is a privately owned airline with strategic alliance partnership with Nippon Cargo Airlines, NYK Line and Jade Cargo.
     Jett8 announced on August 15 that scheduled flights to and from HKG, AMS, MMX, PVG, BLR, MAA and BOM have been dropped “due to landing permit and slot issues”, but services are being continued on a fully chartered basis.
David

Emirates A380
USA All Star

     It has been about a month now but the sight of the A380 arriving several times a week from Dubai and landing right down the slot at John F. Kennedy International Airport in New York City still stops most other activity as the giant comes and goes.
     The scene with airport workers and people driving around in their cars and trucks on airport roads and up and down Rockaway Boulevard, the main perimeter road that witnesses the landings remains the same.
     “It (A380) reminds me of the old days when JFK meant excitement in airline travel,” an old airport hand reminisces.
     “For a long time Concorde would stop traffic here coming and going and even after that aircraft became routine.
      “Concorde was still the airplane you would watch coming and going until it was out of sight.
     “JFK was important then.”
     Today the place while still a main gateway for the greatest city on earth is anything but special.
     Years of poor planning by Port Authority management led by a team within the group responsible for the three main New York City gateways has resulted in lots of politically driven initiatives but no grand airport vision that once lived there.
     One can imagine what the likes of Austin Tobin and others who made these airports unique and wonderful once upon a time might think to look at them today.
     But that is another story.
     For its part, Emirates by creating the going away best airport airline operation at any of the three airports has reawakened a spirit of what once was, and could be in the future, much in the same fashion that the great Dieter Bergt brought to getting Terminal One built at JFK and Henk Guitjens brings and continues to deliver for terminal Four every day.
     The EK operation from curbside to airplane is just terrific and best in class no matter what cabin of the airplane you land in.
     The EK JFK business lounge redefines great service and ease of passage in the 21st century with its direct access from the club’s pampered environment right onto the soft surroundings of awaiting aircraft.

     Talk about an end-to-end attitude adjustment, the Emirates experience by any measure is something else!
     But it is the A380 both as an experience as mentioned to watch from the ground and enjoy from aloft that makes flying fun again.
     The world's biggest jetliner brings back the golden era of air travel that once or maybe never was.
     No other airplane in the world can fly you New York-Dubai roundtrip with the hot showers, massaging chairs, 1,000 channels and seven-course meals served on china and linen and a bar with a waterfall.
     But if you might think what about coach consider greater comfort than anyplace else aloft with personal 9-inch TV and 500 channels, plus plenty of overhead luggage space and even gyroscopic cup holders.
     Emirates said, that it is adding service from Dubai to San Francisco and Los Angeles by the end of the year.
     Nice.
Geoffrey

Siberia S7 Connections

     If you have cargo bound for Belgorod, Beloyarsky, Vologda, Ingushetia, Kaliningrad, Kirov,Kursk, Mirny, Nalchik, Neryungri, Noyabrsk, Nyagan, Polyarny, Stavropol, Sovietsky, Surgut, Syktyvkar, Tyumen, Ulyanovsk, Usinsk, Ukhta, Khanty-Mansysk or Cherepovets have we got an airline for you!
     Once upon a time going to Siberia was a tough trip.
     Last month as Sibar Airlines or S7 as the number two Russian airline is now called, bellied up to the table whilst making an overture for a stake in Austrian Airlines, the carrier came into world view.
     Sibir Airlines is the descendant of Aeroflot’s largest regional subsidiary set up in Tolmachevo, Novosibirsk in 1957. Its first passenger flights were between Novosibirsk and Moscow with Tu-104s.
     In May 1992 a state-run enterprise called Sibir Airlines, based at Tolmachevo airport, was created by the decree of the Russian Ministry of Transport. In August 1994, Sibir Airlines received its international IATA code, S7, and in 2001 it became an active member of the International Air Transport Association.
     Since 1998, the company has been growing rapidly.
     Since 2002, Sibir has been Russia’s leading domestic carrier.
     Today S7 is one of the world’s 50 biggest domestic airlines, and one of the top 100 in terms of key performance indicators.
     Last year the company conducted over 40,000 flights, carrying 4,900,000 passengers and more than 28,000 tons of cargo and post to every major city in Russia and the rest of the CIS.
     S7 operates scheduled flights to Europe and countries in the Asia-Pacific region, as well as charter flights to 20 countries around the world.
     S7 aircraft include Airbus À319 and A310s, Boeing 737s, Tupolev Tu-154Ìs and Ilyushin Il-86s.
More: www.s7.ru.

IATA Forecasts Heavy Weather

Macau Jetts To Africa

Siberia S7 Connections