United Technologies Corp warned it will miss its 2016 goal for deliveries of a new jet engine by roughly 25%, the latest setback in one of the most important programs for the conglomerate. Pratt & Whitney will likely ship about 150 of its newest family of commercial jet engines, known as the “geared turbofan,” down from a previous target of 200, Gregory Hayes, CE of Pratt parent United Technologies, told investors Friday. There had been warning signs, especially the announcement from Bombardier earlier this month that it was cutting its own delivery schedule, and blaming that on delays from Pratt. “Suffice it to say the airlines aren’t happy they’re not getting the engines,” Hayes said. “We’re not happy we’re not delivering.” Pratt & Whitney executives have previously warned the new engine would put pressure on its supply chain. <br/>
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The smallest aircraft made by Boeing and Airbus are about to find a new role operating trans-Atlantic routes that were previously the preserve of some of the world's biggest planes. The re-engined 737 Max and A320neo jets offer a 15% fuel saving meant to cut costs on the shortest inter-city services. At the same time the revamp has added about 500 miles to their range -- just enough to allow the narrow-bodies to span the 3,000 miles between the eastern US and Western Europe. While 8 hours on a 130-foot plane with 3 toilets and 1 gangway might not immediately appeal to travellers used to the spacious cabins of an Airbus A380, airlines say the smaller jets will open up direct routes that wouldn't otherwise be viable. That would also do away with the need to switch between flights at a busy hub. <br/>
A4E and IATA are again calling on European authorities to take action against what they call unjustified air traffic control strikes and to ensure service continuity for air traffic management services. According to IATA, strikes by controllers have caused 1m minutes of delay (more than 16,000 hours) across Europe this year. A4A said the latest ATC strikes in Greece, Italy, Belgium and France since March this year have caused over 4,000 cancellations among A4E members. This week’s French ATC 35-hour strike, which began Sept 14, is the 11th ATC strike in France this year. According to A4E, airlines this week in France had to reduce their flight schedule by 15% and more than 300 flights were expected to be canceled—delays and time-consuming detours not included. <br/>
Seating and cabin interior manufacturer Zodiac Aerospace said it is overcoming the problems that have led to aircraft being delivered late, but more remains to be done. Delays in the supply of components led to Airbus CE Fabrice Brégier highly criticising the interiors specialist earlier this year, saying the company had been “in denial” over the problems. Announcing Zodiac’s 2015-16 results, Group CE Olivier Zarrouati said the year-end “has shown significant improvements in our operations and in our financial performances, even if there is still more to be done. “The recovery plans in place in seats and cabin branches and the Focus transformation plan are generating clear and tangible improvements. Zodiac Aerospace is well on track to get back to operational performance at horizon end of 2017.” <br/>
Some of the biggest airlines that use Gatwick for key international routes said they did not support the airport’s proposal for a second runway. In all, 75% of carriers did not think expansion at Gatwick was the answer to Britain’s limited airport capacity. The research will be a major blow for Britain’s second largest airport. One main airline said it would even reconsider whether it should stay at Gatwick at all if the airport expanded. In particular, it was concerned that a second runway would mean passengers having to pay extra. Airlines would be asked to pick up part of the bill for the project, and would pass the costs on to their customers. Only 2 out of the 8 major airlines contacted said they supported the runway expansion. <br/>
The number of "air rage" incidents on UK airlines has quadrupled over a 3-year period. Civil Aviation Authority data shows there were 386 dangerous incidents in 2015 - compared with just 85 in 2013. The head of a leading budget airline has suggested people who cause trouble could be banned by all operators. Examples of incidents quoted by the CAA include disruptive passengers fighting each other and one passenger who had to be restrained during the flight after "progressively disruptive behaviour" before attempting to open the plane door. Internationally, too, the problem seems to be growing. IATA has seen a growth in the number of reports of unruly passenger incidents every year since 2007, with more than 10,000 reported last year. A quarter of them mention drugs or alcohol as a trigger <br/>
Airlines have asked the govt to set the goods and services tax (GST) at 15% and retain existing tax exemptions to avoid fare hikes. GST, which aims to economically unify the country, will subsume most of the indirect taxes levied by the centre and the states including excise duty, service tax, value-added tax, entertainment tax and luxury tax. The tax is expected to be implemented next year. The current rate of service tax is 14% and adding Swachh Bharat Cess and Krishi Kalyan Cess, airlines pay 15% tax. “Under no circumstance should GST exceed 15%,” said an airline official, who did not wish to be named, referring to the submission made to the govt last week. “It would hamper growth in the fastest growing aviation market in the world.” Airlines expect a 9-15% increase in airfares if the GST is set higher. <br/>
Iran expects the US Treasury to grant licenses by the end of this month that should help pave the way for the completion of the purchase of more than 200 aircraft from Boeing and Airbus, Iran’s deputy transport minister Asghar Fakhrieh Kashan said Sunday. Iran is trying to upgrade its aging airline fleet and in June signed an agreement with Boeing to buy 80 planes and lease 29 more. But the deal has come under pressure from lawmakers in the US who have discussed various measures to restrict the sale, including prohibiting the Treasury Department from licensing it. Kashan said Iran has an agreement with a leasing company for US$10b in financing for the Airbus deal. He didn’t disclose the name of the leasing company or say where it was based. The value of Iran’s deal with Boeing has yet to be finalised. <br/>
Iran may adopt a key international agreement that would protect the rights of foreign leasing companies as it seeks to renew its elderly fleet of passenger jets, the country's transport minister said Sunday. The 2001 Cape Town Convention makes it easier to attract foreign leasing companies by protecting their rights to re-possess aircraft if airlines go bankrupt and is widely considered a benchmark for the international jet market. "We are studying that. If we come to a (positive) conclusion, we will certainly process it," Roads and Urban Development minister Abbas Akhoundi said. Deputy Roads and Urban Development Ashgar Fakhrieh said the ministry was in the process of getting internal approval to join the pact, subject to a decision in parliament. <br/>