Some airlines are taking extra steps to prevent a disaster in case a passenger's device powered by a lithium ion battery catches fire during flight. At least three US airlines are adding new fire-suppression equipment to fleets in case a cellphone or laptop battery overheats, catches on fire and can't be extinguished. The issue has taken on new urgency following incidents of overheating Samsung Galaxy Note 7 phones, including one on a Southwest flight earlier this month. The FAA has taken the unusual step of warning passengers not to use or charge the devices while on board and not to stow them in checked luggage. One of the first airlines to deploy fire-containment bags on its entire fleet was Alaska Airlines. The Seattle-based airline finished adding them to its 219 planes in May, a process that took two months from concept to deployment. The bright red bags are made of a fire-resistant material and are designed to hold electronic devices such as mobile phones and laptops that can sometimes overheat and catch fire. The bags can be shut with Velcro and heavy-duty zippers and can withstand temperatures up to 3,200 degrees Fahrenheit. The sell for $1,800 each but airlines are likely to have negotiated a bulk discount. Virgin America has installed fire-containment bags on all its planes, said a spokeswoman. Delta noted Thursday that it too would be adding such bags. American Airlines, JetBlue Airways, Southwest Airlines and United Airlines don't have any immediate plans for fire containment bags but all said their crews are trained on how to fight such high-energy fires. Additionally, aircraft have been fitted with fire extinguishers in the cabin as well as other fire detection and suppression systems in cargo holds for decades.<br/>
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The latest monitoring by the International Air Transport Association (IATA) shows that airline profitability is showing signs of peaking. Underpinning the trend is a 20% drop in net profit in IATA's enlarged sample of airlines for their second-quarter financial performance. The sample total of 97 airlines, including 34 in Asia-Pacific, posted a combined net profit of US$8.52 billion in the April-June period, down from $10.6b in the same period last year. The lower profit reflects the impact of lower unit revenue, though earnings before interest and taxes edged up to 9.9%, from 9.8% in the same period last year. Margins improved slightly in North America, remained unchanged in Asia-Pacific, but dipped in Europe, attributed in part to the disruption to regional traffic caused by terrorism. <br/>
The EU on Oct. 13 formally appealed a WTO ruling issued in September that states sponsors of Toulouse-based Airbus Group did not properly remove illegal subsidies for building large civil aircraft. The appeal, which was expected, continues one of two WTO disputes between the leading aircraft OEMs at least well into 2017. A Sept. 22 ruling upheld a US-Boeing complaint that Europe had not properly remedied up to $22b it provided Airbus in improperly funded state aid, including almost $5b additionally provided for launching the new A350. In its appeal, the EU stressed that the WTO agreed with some of its points in this particular case. “However, significant aspects of the compliance panel report cannot be regarded as satisfactory,” officials said. “The EU in particular disagrees with the legal conclusion that, even though most of the subsidies challenged by the US have ended, the EU has not yet fully complied with the previous ruling,” they added. Officials indicated they would argue in their appeal that the WTO compliance panel did not correctly define the elements that would determine whether the loans to Airbus for the A350 XWB model were subsidized. Specifically, the EU is contesting some of the elements proposed by the panel to determine what a proper market benchmark would be for the loans, which then determines how far off the EU was, if at all. The EU also believes the panel made “several errors” in assessing the alleged harm that such subsidies caused to Boeing.<br/>
An escalating fare war over the Atlantic is forcing big airlines to consider chopping prices, redesigning cabins and adding restrictions to win back budget-conscious vacationers drawn to upstart, low-fare rivals. Delta is reviewing cabin layouts, fares and the rules that come with them for international flights, its President Glen Hauenstein said Thursday. "The exercise we're going through is to see what do people really want to buy and what are they paying for it," Hauenstein said. "It includes all kinds of fare products; it includes cabins we don't have today." The airline's marketing partner, Air France KLM SA, said last month that it was looking at every option to fend off low-cost entrants. And US rivals American Airlines Group Inc and United Continental plan to roll out stripped-down fares for domestic travel, though a spokesman for American declined to comment on whether this would be extended to Europe, and United representatives did not immediately comment. The moves by the big carriers follow a summer in which budget long-haul airlines, notably Norwegian Air Shuttle, shook up the trans-Atlantic travel market by offering ticket prices as little as half what rivals charge. Norwegian has said it can do this profitably because its labor costs are low and it flies some of the most fuel-efficient aircraft available. Low-cost Icelandic carrier Wow Air also has taken market share from legacy airlines.<br/>
Hurricane Nicole roared across Bermuda on Thursday, pummeling the resort island with winds up to 115 mph that snapped trees and peeled off roofs before the storm spun away into open water. The Category 3 system also flooded homes, damaged boats that broke away from their moorings and knocked out power to more than 27,000 customers who live in the British territory, which has sturdy infrastructure and is accustomed to heavy weather. By late Thursday afternoon, crews were clearing roads, and many islanders were posting pictures of calmer seas and clearer skies. "Nicole is now racing away," said James Dodgson, deputy director at the Bermuda Weather Service. In Nicole's aftermath, government officials inspected bridges and other structures. The Royal Bermuda Regiment removed uprooted trees and other debris from roads. Cleanup efforts were expected to continue until early Friday, and the island's airport planned to reopen by then. Schools were scheduled to stay closed until Monday. American Airlines, Air Canada and other carriers cancelled flights to the island. <br/>
Indians were told to expect a decision allowing them to update their Facebook status and send WhatsApp messages from 35,000 feet as early as September. Instead, they’ve been kept in a holding pattern because of security concerns. Delays gaining regulatory approval for WiFi in Indian airspace aren’t dissuading satellite operator Inmarsat, which said it’s talking preemptively to carriers, including Jet Airways and the local unit of Singapore Airlines, about enabling connectivity on their flights. “We are keeping a very keen eye on movement around the regulatory environment,” said Rash Jhanjee, a director for airline market development for India, Middle East and Africa at Inmarsat. “The Indian consumer, the average business user on these planes, is now expecting connectivity on the ground as well as in the air.” Civil Aviation Secretary R.N. Choubey said there is “a fairly good chance” permission to operate Wi-Fi in Indian airspace would be given in about 10 days. That was on Aug. 24, yet officials are no closer to pinpointing a start date. Meantime, all airlines have to disable Wi-Fi access when flying over India, Facebook’s biggest market -- a rule foreign airlines have lobbied to have abolished. India’s Home Ministry has expressed concern that in-flight WiFi may pose a security threat because of difficulty tracking voice and data usage from the air, and others have questioned whether there would be a market for the service in a nation where discounted base fares start at just 2 cents.<br/>