Regional Market South America
Since the opening of the first intercontinental flight from Europe to Rio de Janeiro in 1956, aviation has become an important part of the economy of South America.
Although it has faced many challenges, the aviation industry in South America has been growing constantly during the last years. The numbers of passengers travelling within the continent are increasing rapidly, thus demanding more from airlines. Economic stability and higher income allow an increasing number of South Americans to travel for leisure and business purposes. The necessity for improvements in security measures leads to better decision making by airlines and airport companies, as well as by the highest authority in aviation-the Civil Aviation Authority.
The demand derived from international events, such as the World Soccer Championship 2014 and the Olympic Games 2016, speed up growth and create the necessity for detailed planning and appropriate solution finding. Lufthansa Consulting supports the effective, fast and transparent development of such projects.
Under the motto "True broadband for the aviation industry" this virtual event will address the main topics digital passenger experience on day one and efficient flight operations on day two.
Lufthansa Consulting experts will share insights from our experience in a wide range of international aviation projects.
How digital is air cargo today? By launching initiatives and programs like ONE Record or eFreight, driven by IATA, air cargo has become more digital in the past decade. The unprecedented amount of shipments and therefore shipment data offers much potential for making air cargo even more digital. Yet, digitalization, especially in the sense of automating data sharing and communication processes, is evaluated as one of the major challenges by the air cargo industry. However, data exchange between stakeholders is a central aspect when attempting to digitalize air cargo processes. Nowadays, bilateral data exchange and interfaces are predominantly used. Even very traditional communication channels, e.g. email or phone calls, are common ways to connect stakeholders. On top of that, logistics in general is driven by high fragmentation due to an uncountable number of diverse stakeholders. These facts, in turn, lead to increased complexity, manual data sharing processes for involved parties and decreased supply chain visibility for air cargo stakeholders and their customers, underlining the room for improvement for the digitalization of air freight. Due to the complexity of the industry set-up, one apparent solution, i.e. open data sharing, does not seem feasible.
Both individually and collaboratively, stakeholders can push digitalization forward. For the former, airlines, airports and ground handling agents can individually review their IT landscape and evaluate the future-readiness with regards to functionalities and interfaces. For air cargo players to become future-ready, the switch of the entire IT landscape to one of the predominant IT providers might not be an optimal solution. Individual requirements and local specifications can potentially be reflected better when approaching the journey towards digitalization step by step and with providers of niche solutions or innovative logistics start-ups. Besides the individual approach, acting jointly with other stakeholders in the air cargo community, offers a great leverage for digitalization. Solving challenging use cases and innovation projects, however, requires efficient collaboration as well as target-oriented steering by one or more stakeholders. Fixing the basics of data sharing, i.e. eliminating hurdles and improving automation of processes, combined with stakeholder collaboration can enable air cargo to achieve the digital breakthrough in the near future. A fully digitized data flow between involved parties and full air cargo supply chain visibility for active and passives users can lead to less manual work, fewer irregularities, faster processes and facilitated market entries for new air cargo players.
Also streaming on Spotify, Apple Podcast and Amazon Music
Sebastian Kaiser – Consultant in the Solution Group Customer Experience
Dominique Bayer – Consultant in the Solution Group Infrastructure & Operations
Lufthansa Consulting’s Air Service Development (ASD) experts will be present at the World Route Development Forum from 10 – 12 October 2021 in Milan, Italy. Senior Partner Ronald Schulz together with Consultants Luisa Grasshoff and Johann Gies welcome visitors to their exhibition stand P26 and will present their services for airports and the wider aviation industry, tailored to the needs of a post-COVID recovery.
”During and after the crisis, Air Cargo has gained much in importance for passenger carriers. It has become an important factor to consider when convincing airlines of operating a new route. Hence, Lufthansa Consulting now offers an enhanced ASD product including Air Cargo”, says Ronald Schulz.
Air Service Development aims at increasing airports’ and destinations’ connectivity and accessibility to the mutual benefit of airports and operating carriers, as well as to the travelling public. With traffic picking up and pandemic related travel restrictions being eased, the industry has started its recovery journey. More than ever before it is critical for airports to find themselves on carriers’ route maps again. Lufthansa Consulting supports them with its unique ASD product offering the clear benefits of increased connectivity as well as improved aeronautical and non-aeronautical revenue generation.
Lufthansa Consulting, thus, provides airports with experience both in passenger as well as cargo planning and operations, aided by access to various data bases, proven methodology, and deep expertise of the consultants. Its ASD projects help airports to transform their commercial aspirations into clear and compelling Route Studies targeting specific airlines on individual basis. This now covers both, Cargo-ASD for freight carriers, and ASD+Cargo for passenger carriers. “When we look at passenger services, the level of cargo reflection in Route Studies can be individualized as per airport and route-specific requirements,” Schulz says.
Air transport plays a fundamental role in Africa’s socio-economic development. The sector is a catalyst for promoting tourism and fostering trade and regional development. However, Africa represents less than 3% of global air traffic and over the past 15 years, the continent has had the lowest level of market consolidation compared to the other regions in the globe.
The African Airlines Association (AFRAA), Lufthansa Consulting and Kenya Airways staged a high level workshop on 14th September 2021 on African airlines consolidation to discuss the reasons for few partnerships and limited airline consolidation, the challenges and benefits of consolidation and measures for action by industry stakeholders to address the situation.
Mr Abdérahmane Berthé – AFRAA Secretary General, in his remarks stated: “The aviation sector is reeling from the impacts of Covid-19 pandemic. We need to devise new approaches of doing business in the face of increasing concerns on the sustainability of African Airlines. A crucial element in the success of the African airlines is consolidation and collaboration. The engagement of States, airlines and all the relevant stakeholders is necessary to effectively achieve the required outcomes on airline consolidation in Africa.”
Speaking during the workshop, Kenya Airways CEO Allan Kilavuka said: ”It is crucial to retrace and learn from the footprints of consolidation from different parts of the world as we reset Africa’s aviation towards our collective dream for flying to a better future. Consolidation and collaboration are essential ingredients for resilience and sustainable business operations of airlines. The ripple effect of strengthened collaboration amongst airlines will be an increase in the industry’s contribution to the sustainable development of Africa and therefore we must elevate the tenor of discourse and make the airline industry matter in and for Africa”.
Ms. Catrin Drawer - Head of Market Africa, Lufthansa Consulting stated: “We require to meet the challenges of the “New Normal”, a reset in our thinking and approach. We require new business models, meaningful innovations in operations, adaptive management open to change, a growing true synergistic relationship between airlines and other relevant stakeholders. New challenges need new solutions now and in future to bring both resilience, and sustained success. Thus, synergy and meaningful partnering, whether through existing contracts and alliances or new agreements, will be essential. We cannot bring back yesterday but we may together shape the future.“
Lufthansa Consulting experts provided an in-depth analysis and background of consolidation of airlines from a global to an African perspective. The impacts of consolidation for African airlines, passengers, cargo, air transport growth and connectivity were discussed. Case studies were presented at C-level by Kenya Airways, Air Afrique and Ethiopian Airlines to enrich the discussions with first-hand experiences on the challenges, benefits of consolidation as well as the lessons learnt.
The forum articulated the following recommendations for action by the industry:
i. Consideration of various models of consolidation including equity partnerships between two airlines or across a group of investments, cooperation between two or more well-matched airlines, or the formation of a new common airline. The concept of “Air Afrique” remains a valid consideration for Africa.
ii. Implementation of appropriate corporate governance structure is necessary for consolidation. Political interference in the airline management is to be avoided.
iii. Call to Development Finance Institutions (DFIs) to finance the feasibility study of consolidation models.
iv. Call for uniform implementation of harmonized regulations and the establishment of an enabling working relationship between regulators, airlines and Regional Economic Communities (RECs).
v. Enhancement of cooperation among African airlines (alliance of airlines, pooling resources, code sharing and interlining).
vi. Call for support and commitment from Governments for airline consolidation in Africa.
vii. Urge airlines to carry out careful evaluation of potential consolidation/partnerships based on factual data.
viii. Exploration of cargo opportunities for air cargo consolidation.
ix. Call for government and private sector collaboration to achieve concrete steps in airline consolidation.
x. “Walk the Talk” - translate ongoing discussions into action in the interest of delivering accelerated benefits to the aviation ecosystem
The important workshop brought together over 200 participants comprising airline CEOs, C-level representatives from airports, CAAs and other African air transport decision makers as well as the media.
The African Airlines Association, also known by its acronym AFRAA, is a trade association of airlines from the member states of the African Union (AU). Founded in Accra, Ghana, in April 1968, and headquartered in Nairobi, Kenya, AFRAA’s mission is to promote, serve African Airlines and champion Africa’s aviation industry. The Association envisions a sustainable, interconnected and affordable Air Transport industry in Africa where African Airlines become key players and drivers to African economic development.
AFRAA membership of 46 airlines cuts across the entire continent and includes all the major intercontinental African operators. The Association members represent over 85% of total international traffic carried by African airlines. Follow us on Facebook, LinkedIn, Twitter and YouTube.
About Kenya Airways
Kenya Airways, a member of the Sky Team Alliance, is a leading African airline flying to 41 destinations worldwide, 34 of which are in Africa and carries over four million passengers annually. In 2020 KQ was named Africa’s Leading Airline by the World Travel Awards. It continues to modernize its fleet with its 32 aircraft being some of the youngest in Africa. This includes its flagship B787 Dreamliner aircraft. Kenya Airways services cargo flights including London, Amsterdam, Guangzhou, Sharjah, Mumbai and over 25 intra-Africa routes in addition to its passenger network. The on-board service is renowned and the lie-flat business class seat on the wide-body aircraft is consistently voted among the world’s top 10. Kenya Airways takes pride in being at the forefront of connecting Africa to the World and the World to Africa through its hub at the new ultra-modern Terminal 1A at the Jomo Kenyatta International Airport in Nairobi. For more information visit www.kenya-airways.com Follow us on Twitter, Facebook, LinkedIn and Instagram
About Lufthansa Consulting
Comprehensive advisory services - Aviation is our business
Lufthansa Consulting is an aviation and management consulting company, which is dedicated to assist international clients from the aviation sector and related industries to meet the challenges of the future successfully. Since 1988 the company has provided services and solutions to the air transportation industry in more than 3500 projects worldwide and is an independent subsidiary of the Lufthansa Aviation Group (Deutsche Lufthansa AG).
Lufthansa Consulting is in the unique position of offering comprehensive consultancy and expertise to aviation specific client groups: air carriers, airport authorities, civil aviation authorities, governments, investors, financial institutions, manufacturers, other industries and service related entities. We know the aviation business and we take pride in implementing our solutions.
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Ground Operations resembles one of the key pillars in aviation. Lufthansa Consulting’s initiative “GO 2030 – Ground Operations 2030”, is the umbrella for various deep dives into five focus topics of Ground Operations. In this podcast episode, our expert Eric Kuhn presents the identified focus topics, major challenges of Ground Operations, as well as solutions to those challenges. Together with the new podcast host, Sebastian Kaiser, he also gives an outlook on how aviation mega trends will affect the future of Ground Operations.
Listen to the podcast on Spotify, Apple Podcast and Amazon Music
You can also listen to the podcast here
Sebastian Kaiser – Consultant in the Solution Group Customer Experience
Eric Kuhn – Consultant in the Solution Group Infrastructure & Operations
Besides this podcast episode you can also read the lead article of GO2030 which has been published already.
Throughout the upcoming months, Lufthansa Consulting will share various deep dive articles reflecting the focus areas of GO2030. The series of articles and the podcast episode aim at answering the core questions outlined in the article as well as giving a solid base for preparing for the future Ground Operations.
To secure the future viability and growth of the airline, Lufthansa Consulting optimized the route network and identified new potential markets. Recommendations for short and long term fleet planning were defined to support the network optimization.
The efficiency of the existing cargo terminal facilities was improved to handle the future cargo demand until at least 2018. The client is the number one freight airport in Brazil with a terminal area of 96,000sqm handling 439,000t of cargo per year.
Full support for operational readiness of a new terminal. The objective of the ORAT project was the coordinated approach to prepare all airport stakeholders for the operations in and at the new terminal. Preparation and execution of different operational trial scenarios to fully test and prove all aspects and to ensure a seamless transition into the operations.