A swell of anti-global trade sentiment is worrying airline executives who are fearful it could lead to slower traffic growth and limit market access. Retrenching on so-called open skies policies that have made it easier for airlines to connect cities across borders would be “a hugely retrograde step,” Tim Clark, president of Emirates Airline said this week. The Dubai-based carrier has grown to become the biggest airline by international traffic. Concern about increased levels of protectionism has been spurred by the US presidential campaign, where both leading candidates have criticized trade pacts with other countries. These worries have been amplified by Britain’s decision in June to leave the European Union and a move by Belgium’s Wallonia region to torpedo a trade deal between the EU and Canada. Belgium last month reached a political agreement with the French-speaking region to salvage the Comprehensive Economic and Trade Agreement. Brian Pearce, chief economist for the IATA, said “aviation flourishes where there is free trade. That’s a concern for us when we see that potentially threatened.” The industry group could be forced to lower its 20-year passenger growth estimate should greater protectionism creep into global trade, he said.<br/>
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Ever since online travel agencies have existed, airlines have attempted to control their access to airfares, granting it, taking it away, then granting it again. But now these third-party websites are fighting back in unison, and they've attracted the attention of the US DoT. You may not realize it, but when you attempt to compare airfare on sites like Hopper, Expedia, TripAdvisor, Farecompare and many others, you often don't see every possible airline or airfare. You won't see Southwest's fares, or in many cases those sold by Allegiant Airlines. For a while, American didn't share fare data with Hopper (it does now), and AA also had access tussles with Orbitz over the years. But a group calling itself the Travel Technology Association, which advocates for "increased transparency and competition in air travel," has taken its case to the government and it looks like they'll get a hearing. The DoT has issued a request for information concerning these practices. "Concerns were raised about practices by some airlines to restrict the distribution and/or display of flight information by certain online travel agencies (OTAs), metasearch entities that operate flight search tools, and other stakeholders involved in the distribution of flight information and sale of air transportation." Airlines, not surprisingly, are fighting back. <br/>
Indian PM Narendra Modi fired a direct shot at India’s endemic corruption with a surprise move on Tuesday to ban the country’s largest currency bills, starting the next morning. The ban is intended both to curb the flow of counterfeit money and to take aim at terrorist organisations that rely on unaccounted-for cash. It is also expected to help the government clean up a system that has relied on cash to pay bribes and to avoid taxes. But the announcement, made on national television in both Hindi and English, led to an immediate upheaval in the country. Abolishing the current version of the 500 and 1,000 rupee notes, worth about $8 and $15, will effectively remove 80% of the currency in circulation. Modi said banks would be closed on Wednesday. After that, people can exchange the banned notes through the end of the year for those of smaller denominations or new bills that are being created. ATMs around the country were overrun Tuesday night with people confused about the plan and trying to complete financial transactions before the machines closed the following day. In some places, hundreds stood in line in front of a single ATM. Cash is so prevalent in Indian society that the ban came with a 72-hour exception for paying for hospital bills and airline tickets. India’s low-cost carrier, IndiGo Airlines, sent an email warning customers that banned notes could not be used to purchase in-flight services or to pay excess baggage charges.<br/>
Police in Australia have launched an investigation after pilots on approach into the Melbourne area received fake air traffic control communications. The major security breach has seen a hoaxer interfering with incoming passenger flights at Melbourne Airport, in Tullamarine, and Avalon Airport, in Avalon, on at least 15 occasions, the Australian Federal Police (AFP) said. "As a result of the unlawful interference with air traffic control broadcasts over several weeks, the AFP has today issued a call for public help for any information that will result in the identification and arrest of the person responsible." Authorities now believe that the unknown individual has been using a portable transmitter from nearby airport car parks to target incoming passenger flights. On several occasions, the hoaxer contacted planes making their final approach, pretending to be from the control tower. The unauthorized radio transmissions would force pilots to abort landings and perform a "go around" (an emergency maneuver) instead. Airservices, Australia's air navigation service provider, said that no passenger safety was compromised on any of the flights as a result of the fake radio calls to pilots. The AFP added that while incredibly serious, travellers should not be concerned about their safety and security while visiting the Melbourne area. "The airlines have been briefed to ensure the advice has been passed on to their pilots and to ensure appropriate measures are in place," said Chris Sheehan, the AFP's acting assistant commissioner.<br/>
Fueled by a rising middle class and a surge in low-cost airlines, the Asia-Pacific region is the fastest-growing aviation market in the world, a trend that is already taxing the region's infrastructure and that IATA projects will continue over the next two decades. In 2015, passengers around the world flew 6.5% farther than they did in 2014, while passengers in the Asia-Pacific flew 8.2% more miles. That growth is straining the aviation infrastructure across the region, leading to expressions of concern from IATA and other industry players that basic air travel components such as runway and gate space, as well as air traffic control networks and the requisite pool of skilled laborers won't keep up with rising demand. "The situation is dire. Action is needed now," said Conrad Clifford, IATA's regional VP, Asia-Pacific. According to IATA's latest 20-year passenger forecast, published last month, the Asia-Pacific region will see 7.2b airline passengers in 2035, up from 3.8b this year. If that forecast proves accurate, it will be a larger growth in terms of total travelers than the rest of the world combined. During that same time frame, China is projected to overtake the US as the world's largest aviation market, while India will surpass the UK to take the No. 3 spot on that list.<br/>
BP will invest $30m in Fulcrum BioEnergy, which makes biofuel from garbage, in a new partnership designed to curb airplane pollution. The London-based oil-producer also signed a 10-year deal to buy 500m gallons of biofuel from Fulcrum’s North American plants, according to a statement by BP on Tuesday. BP will distribute the aviation fuel to planes through its unit Air BP, which sells about 7b gallons of aviation annually. Airlines facing pressure to clean up their pollution last month brokered a landmark deal in Montreal. Their accord created a global system that requires them fund environmental initiatives from 2020 that may cost as much as $24b annually by 2035. “We have a deep understanding of our customers’ challenges to achieve their lower carbon goals,” said Jon Platt, Air BP CE. “Securing this supply helps secure the future competitiveness of Air BP, and our place as a leader in the industry.”<br/>