Global passenger traffic for January showed the strongest growth in demand for 5 years, IATA said in its monthly report. International passenger market demand grew 9.6% compared to the previous year as the Lunar New Year fell in January, compared to February in 2016. IATA said holiday-related travel contributed up to half of a percentage point in extra demand growth. Asia Pacific led the pack in terms of regional growth with a 14.3% lift. The Middle East came in a strong second on 13.5%, with Europe third on an 8.4% boost in revenue passenger km. North America trailed with a 3.4% increase in RPKs. Capacity in available seat km rose 8% overall, with the Middle East on 11.2% edging out Asia Pacific's 11.1% increase. Europe was third with a more modest 7% lift in capacity for the month. <br/>
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Boeing is nearing a decision to build a longer 737 Max targeted for lengthy routes such as Boston to Los Angeles -- and fill a gap in its line-up that Airbus is exploiting by racking up order after order for its A321neo. For one key customer, Air Lease Corp., Boeing’s newest single-aisle plane can’t come soon enough. “We’ve recommended 2019,” John Plueger, CE of the lessor, said. That’s a year ahead of Boeing’s schedule for the Max 10X’s planned debut. “It would have been better to get the first airplane in March 2019, but I don’t think that’s possible,” he said. Boeing is holding intense discussions with airlines and lessors for the Max 10X and has “extended business offers” to some potential buyers as it builds a case for the narrow-body jet, Randy Tinseth, a Boeing VP of marketing, said. <br/>
Embraer is on track to fly its next-generation E195-E2 commercial jet by June after an earlier-than-expected rollout of its first prototype Tuesday, a senior executive at the planemaker said. Embraer's original timeline for the aircraft had projected a rollout in the first half of 2017 and first flight in the second half of the year, John Slattery, the company's commercial aviation chief, said. "Given our current trajectory ... I would be surprised if it took until the second half of this year to fly the prototype," he said before the rollout. "I do expect we'll fly ahead of schedule." The swift development of Embraer's re-engined regional jet line-up, which Slattery said was on budget and in-line with performance specifications, has bolstered hopes for new sales in the company's biggest division. <br/>
US airports estimate they need almost US$100b for capital projects during the next 5 years and can only fund about half of that on their own, according to a study by a group representing commercial airport owners. Airports are coping with a number of changes that have stretched existing facilities, including higher passenger and cargo activity, aging infrastructure, and consolidation in the airline industry that has increased the demand for hubs, the Airports Council International-North America said in a bi-annual study released Tuesday. The cost projections for 2017 through 2021 are 32% higher than the group’s 5-year estimate in 2015. The group’s report comes as president Donald Trump seeks to invest $1t in US infrastructure. Trump has called for a “national rebuilding’’ of roads, bridges, tunnels and airports. <br/>
Argentina’s govt said Monday it plans to allow the first budget airline to begin flying in the country, opening up one of the biggest untapped domestic airline markets to increased competition. The move, which includes the approval of 135 new airline routes, is the latest in a series of pro-business measures by president Mauricio Macri since he began overhauling the economy more than a year ago. “We have fewer flights per capita than Bolivia and Ecuador and almost a third of the flights in Chile,” Macri said. “We are going to double the number of people that are flying.” Argentina had about 10m airline passengers in 2015 and aims to increase that to 22m annually in 2019. The govt will invest US$1.4b through 2019 to improve airport infrastructure and attract new airlines, Macri said. <br/>