December 1st 2023

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DECEMBER

International Air Transport Association (IATA) director-general, Willie Walsh, said at the lobby group’s global media day in Geneva early this month the outlook was for “more normal growth patterns” in 2024. Read More » IATA forecast net profit next year could reach US$25.7 billion from an expected US$23.3 billion this year. The Asia-Pacific is on track to book a small 2023 loss followed by a return to profit next year.

A key factor shaping the extent of the recovery will be the Mainland market, particularly international travel into and out of the country. To stimulate inbound travel, China has increased the number of countries eligible for visa free travel and reduced visa fees for citizens from several nations. China said this month the measures were having an impact.

Similarly, countries in the region are laying out the welcome mat for China visitors. This month Singapore and China agreed to introduce mutual 30-day visa free travel between the two countries in 2024 while Malaysia and Thailand are visa free for tourists from China.

Some noteworthy trends emerged in 2023; more airlines are offering free internet connectivity whether to passengers in all classes, members of their frequent flyer programs or other subsets of passengers.

In the Asia-Pacific, Malaysia Airlines, Singapore Airlines (SIA) and Vistara are going the complimentry WiFi way. Will more airlines follow suit in 2024? Time will tell.

Another trend was the growing importance of partnerships with SIA setting the pace. Last February, it signed a Memorandum of Understanding with Vietnam Airlines to strengthen their commercial collaboration. In May, it proposed a joint venture with Garuda Indonesia and in November it announced a codeshare agreement with Philippine Airlines.

This is on top of SIA’s previously announced strategic partnership with Thai Airways International in December 2022 and its existing partnerships with Virgin Australia, Malaysia Airlines and further afield, United Airlines.

The impact of these agreements on competition, passenger flows and the bottom line of Indo-Asia-Pacific airlines will be closely watched in 2024.

North American airline access to Tokyo Haneda is another issue expected to feature prominently in 2024 after Delta Air Lines abandoned plans to launch Tokyo Haneda–Portland Oregon and surrendered a pair of slots. American Airlines and United Airlines have applied for the slots to operate to Haneda from New York JFK and Houston Intercontinental.

As 2023 draws to a close, so too does the 25-year tenure of Robert Martin as BOC Aviation CEO. As chair, Liu Jin, noted in November’s announcement of Martin’s retirement, the veteran banking executive led the company to “unbroken profitability through both good times and more challenging times”. Martin’s last day as CEO is December 31. He will remain on the board as a non-executive director.