The US government might expand a ban on larger electronics like laptops in airplane cabins to flights originating from dozens of airports in Europe, the Middle East and Africa, the head of Homeland Security said on Wednesday, though an expansion could be avoided if countries agree to improved security procedures. The US restrictions imposed in March currently cover about 350 flights a week originating from 10 airports, primarily in the Middle East. Extending the ban to all European airports that directly serve US airports would affect nearly 400 flights a day and cover 30m travellers and pose major logistical challenges, airlines and security officials say. "We are looking right now at an additional 71 airports," Secretary of Homeland Security John Kelly told a House of Representatives panel. "We're also looking at ways that we think we can mitigate the threat" without expanding the ban. Kelly said his deputy will attend a conference in Malta next week "to present what we think are the minimum increased security standards ... and present those to people to say if you meet these standards we will not ban large electronics." Kelly said many countries are working to not be added to the ban list by improving screening to "detect this very sophisticated device." He called the danger real. "This is a very serious constant threat to knock down an airplane," Kelly said.<br/>
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Low-cost, long-haul air travel has taken off across the Atlantic, shaking a club of major airlines meeting in Mexico this week and forcing established flag carriers to set up budget subsidiaries or lower fares. Transatlantic routes are among the industry's most popular and profitable, and budget carriers are trying to grab a slice of that business by boosting capacity on them by 68% this summer, according to data from air travel intelligence company OAG. A looming fare war has gained fresh momentum from lightweight new planes with fresh, appealing interiors that help to keep costs down. Norwegian Air Shuttle and Icelandic rival Wow have grabbed headlines with fares as low as $69 and $55 this summer, although Wow's flights involve a stop in Reykjavik. Legacy carriers are not idly standing by, and executives said they were confident their plans to offer low-cost long-haul flights would succeed. "Disrupters such as Norwegian Air Shuttle and AirAsia X have shaken up the airline market and forced scheduled operators to rethink their transatlantic strategies," Euromonitor travel project manager Nadejda Popova said. Lufthansa's Eurowings budget carrier is in its second year of long-haul flying, while Air France is planning to launch a lower-cost long haul brand this fall in a project dubbed Boost. "It confirms our decision that others are following," Lufthansa CE Carsten Spohr said, adding that the German carrier would not have invested in Eurowings without the potential for profit.<br/>
The US's top transportation official Wednesday promoted the Trump administration's proposed privatisation of the air traffic control system in the face of criticism from Democratic lawmakers and some Republicans. "Our air traffic organization must be more nimble," US TSA Elaine Chao told the Senate Commerce Committee. "A bulky federal government procurement apparatus does not move fast enough to keep pace with new technologies and new demands." President Donald Trump Monday unveiled the plan to modernise air traffic control and lower flying costs. Under the proposal, air traffic control would be spun off from the FAA and put under the aegis of a nonprofit entity. Critics say the plan would hand control of a key asset to special interests and big airlines. Senator Roger Wicker, a Mississippi Republican, said Wednesday that small airports in his state oppose the plan. He said that after air traffic privatization in the United Kingdom airline passenger fees rose 30%. "This is a tough sell," Wicker said. Senator Jerry Moran, a Kansas Republican, said he remains "skeptical" of the idea of removing Congress from air traffic control oversight and handing it to a 13-member board. The administration says it would not charge the private entity for the government's air traffic control assets and would bar Congress from reviewing fees charged by the board.<br/>
Less than a year after passenger flights restarted between the US and Cuba, the future of Cuban travel is once again up in the air. Aviation sector leaders gathered in Cancun, Mexico said they are concerned that President Donald Trump may reinstate some political and economic restrictions between the two Cold War-era foes. The Trump administration is reviewing the Obama administration's moves to ease restrictions on travel and investment in Cuba. Trump has criticized the agreements by Obama to thaw relations with the Cuban government. Airlines, facing uncertainty about a US policy that could make moot millions in recent investments, are loath to criticize the Trump administration's unpredictability, but the industry is unified in saying the thaw should continue. "Restricting the network of aviation and access to Cuba would be bad news for aviation. Generally we welcome the extension of access to any country by plane," IATA DG Alexandre de Juniac said. The initial opening prompted a dash to launch flights into Cuba in mid-2016. Some of the early entrants have pulled out, including smaller carriers Frontier Airlines, Silver Airways and Spirit Airlines. Larger US carriers have pared back flights to smaller Cuban cities to focus on service to the capital, Havana. American Airlines, Delta Air Lines, United Airlines, Southwest Airlines and JetBlue have all requested increased frequency on various Havana routes. Those requests are in limbo pending the administration's review.<br/>
Indonesia Wednesday said it had diverted Muslim pilgrims to other airlines after Qatar Airways' licenses were revoked by Saudi Arabia and Bahrain, amid the worst rift in years among some of the most powerful states in the Arab world. Qatar Airways was ordered on Tuesday to close its offices in Saudi Arabia and Bahrain, following coordinated action by four Arab nations to cut ties with Qatar. They accused Qatar of supporting terrorism, an assertion that Doha had dismissed. Indonesia's transport ministry said it had not pulled Qatar Airways' license. The airline can operate flights linking Indonesia to destinations apart from the countries that have "a diplomatic problem with Qatar," it added. Indonesia, which has the world's largest Muslim population, sends more than 200,000 pilgrims every year to Islam's holiest city of Mecca in Saudi Arabia. <br/>
Nigeria's manufacturers, airlines, fuel importers and agriculture businesses will be able to buy dollars at a special market intervention to clear a backlog of foreign exchange obligations now due, the central bank said Wednesday. The central bank plans to settle the bids through a combination of spot and short-term forward deals, currency traders said, citing a notice from the bank. It did not specify the amount of dollars to be sold. "Authorised dealers' accounts with the central bank will be debited in full for the naira equivalent of the dollar bid amount on a spot basis," the bank said in a notice to lenders. <br/>
Auckland International Airport announced plans to invest NZ$1.8b in aeronautical infrastructure by 2022 and said over the next five years its average international passenger charges will reduce by 1.7% in real terms each year while domestic passenger charges will only increase by 0.8% per annum. In nominal terms, however, average revenue on a per passenger basis is expected to be $22.98 in the current financial year and will rise to $23.50 by 2022. For domestic passengers, it is expected to be $5.73 this year and $6.57 in 2022. It is expecting total passenger numbers to rise from 19.8m in the current financial year to 22.6m in 2022. According to the company, its new prices for the 2018-2022 financial years will target a return on investment of 6.99 %. "We believe our prices are fair and reasonable given the significant investment we are making in long-term infrastructure and our charges remain only a small fraction of the overall cost of travel," said Auckland Airport CE Adrian Littlewood.<br/>
Emirates, the biggest operator of Airbus SE’s A380 superjumbo, is in talks about the purchase of 20 more of the double-decker jets in a move that could extend the lifespan of a program dogged by slow sales, people familiar with the discussions said. The contract would be worth $8.7b before discounts, though negotiations are at an early stage and it hasn’t been established exactly how many aircraft the Persian Gulf carrier requires, according to the people, who asked not to be named because the talks are private. Airbus might also be required to commit to measures to make the A380 more efficient before a deal is signed. Emirates could reach an agreement to acquire the planes before the end of 2017 for deliveries starting in 2020, two people said. That would hand Airbus a lifeline in maintaining production at a level where it can break even on each jet, after the company warned this week it would have to cut output further in the absence of new orders this year. Emirates said an email it has no plans “at this time” to buy more A380s, though regularly engages with manufacturers on “product updates and enhancement of current and future aircraft.” A spokesman for Airbus said it doesn’t comment on confidential client discussions.<br/>
Boeing has looked at options "from mild to wild" for the design of a proposed mid-market jet, a senior executive said, hinting at a breakthrough that industry sources say will create building blocks for future models. Marketing VP Randy Tinseth said Boeing would leapfrog reported plans by Airbus to update its hot-selling A321neo, as Boeing eyes a gap between narrow-body jets and long-haul aircraft for a potential new mid-market airplane. "We have looked at the mild and we have looked at the wild and I can tell you we know that if you are going to address that market, you need a new airplane," Tinseth said. Industry sources have said the mid-market development is pivotal for Boeing since it will spawn the industrial jigsaw, systems and cockpits likely to be used for the next plane after that, a three-aircraft replacement of Boeing's 737 cash cow. Getting the "production system" right now would partially allow Boeing to develop the next jet, which is expected to revolve around a model carrying 180 passengers, as an industrial spin-off of the mid-market one, albeit with major differences. This would result in significant cost savings and avoid repeating a patchwork of different production architectures.<br/>