The head of aircraft leasing group AerCap Tuesday expressed confidence in airline demand despite a slowdown in the aerospace business cycle, but questioned the durability of plans by Airbus and Boeing for some output increases. CE Aengus Kelly said he expected Airbus and Boeing would follow through on plans to lift narrowbody production to around 60 jets a month, but doubted this could be sustained for long. Boeing and Airbus have set out plans to increase production of best-selling models by 30% near the end of the decade. Boeing will increase production of its 737 family to 57 a month in 2019, while Airbus aims to boost its competing A320 family to 60 a month in mid-2019. "If the market isn't there, they aren't going to produce them. I think it is a struggle to see 60 a month on a long-term, permanent basis," Kelly said. <br/>
general
Dubai authorities are grappling with new ways of keeping the emirate’s skies safe after drones halted air traffic at one of the world’s busiest airports 3 times last year. The delays were necessary to protect passengers, officials said, but they hit thousands of travellers and cost airlines millions of dollars. Drones pose a “threat to the flying public” and “to an aircraft in operation,” said Ismaeil al Blooshi, deputy head of the air safety department of the United Arab Emirates’ civil aviation authority. He compared drones to the threat posed by birds, but said they were less predictable and harder to avoid. “We have means and data to predict when and where is the bird migration... but with drones, you have this object in the air and you don’t know the intentions” of the operator, he said. <br/>
The Kaliningrad region of Russia wants to establish a regional airline. Local authorities have discussed creating a new carrier with Syktyvkar-based regional Komiaviatrans Airline and Embraer representatives in Russia, the Kaliningrad govt said Feb. 21. “Due to the geographic location of the Kaliningrad region, we need a low-cost air service [connecting the region] with the main territory of Russia as well as with European countries,” Kaliningrad representative Alexander Derkach said. Komiaviatrans CE Alexander Ponomarev said the carrier is ready to take part in this initiative, and has a background in developing a network with routes up to 3,000 km and operating a fleet that can carry from 20 to 120 passengers. The Russian govt subsidises routes connecting Kaliningrad with the main part of the country. <br/>
The cabinet Tuesday approved a new bill on civil aviation that authorises the Civil Aviation Board (CAB) to decide the proportion of foreign ownership in Thailand's aviation business. The move is aimed at enhancing Thailand to become an aviation hub in Southeast Asia. Kobsak Phutrakul, assistant minister to the prime minister's Office, said the existing law requires Thai ownership to control 51% of aviation companies and shareholders must be individuals, prohibiting investment by fund companies. That law is considered an obstacle to the development of Thai aviation, said Kobsak. The amendment should be instrumental in enhancing Thailand's capacity to become an aircraft maintenance centre. The govt is keen to promote the aviation industry in the Eastern Economic Corridor. <br/>
Chinese carriers transported 488m passengers in 2016, up 12% from 432.4m in 2015, according to the CAAC. Chinese carriers opened 260 new international routes during the year. According to the CAAC, passenger boardings jumped 23% to 51.6m on international routes, which outpaced domestic routes at 436.1m passengers, up 11% year-over-year. The average passenger load factor was 82.7%, up 0.6 point over 2015. Average daily aircraft utilization rates decreased 0.1 hour to 9.4 hours. CAAC said Chinese carriers expect to carry 536m passengers this year. Separately, the regulator reported that China’s air transport industry—which includes airlines, airports, aviation supplies company and aviation fuel company—earned a collective profit of CNY60.1b (US$8.7b) from January to November, up 10.5% year-over-year. <br/>