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Scanning the Horizon: 14-18 Dec

Updated: Dec 21, 2020

More parcels, fewer people: how aviation is adapting to COVID-19

Source: World Economic Forum

Although this year we have seen airlines temporarily converting their passenger planes to cargo aircraft, so called "preighters," there is a new and longer trend emerging - permanent passenger aircarft conversion to freighter planes. According to aviation analytics company Cirium, passenger-to-freighter (P2F) conversions are set to rise by 36% to 90 planes in 2021 and to 109 planes in 2022.

Traditionally a volatile market, air cargo is strongly supported by the growth of e-commerce, another trend that is set to continue in the years to come.

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Air cargo now more prepared for Covid-19 vaccine

Source: Air Cargo News

We were mandated, by our clients TIACA and Pharma.Aero to run an airfreight readiness survey to determine how air cargo industry, including airlines, freight forwarders, ground handlers, airports, IT solutions providers, are prepared for the transportation of COVID-19 vaccines, once they are approved by governments.

The results showing that 46% of industry players feel well prepared were published in a white paper (pdf) which also covers the known requirements for vaccine transportation, global and national vaccine procurement strategies and locations of vaccine trials and production.

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Scheme to get Covid vaccine to poorer countries at 'high risk' of failure

Source: The Guardian

The COVAX initiative, which aims to secure enough vaccines for at least 20% of people in poor countries by end of 2021 is struggling, as not enough vaccines are secured currently, due to delays in vaccine approvals, especially the one of the AstraZeneca on which COVAX bet the most. Moreover, India's Serum Institute, which initially was meant to supply COVAX has decided to prioritize India first.

It is clear that the negotiations with phrama companies as well as individual countries are outgoing, and new vaccines are set to be approved shortly. However, the news reports are also showing that rich countries are securing more vaccine doses than their population via bilateral deals with pharmaceutical manufacturers while COVAX scheme relies strongly on voluntary contributions with a right to withdraw, which could raise vaccine price for this initiative, pote