The growth in global passenger traffic demand continued in August, but IATA warned that the upward trend in seasonally-adjusted traffic is easing. Global demand in August was 7.2% higher than the same month last year, with all regions returning strong increases. Asia Pacific topped the regional growth list with a 9.0% increase in RPK traffic, Latin America added 7.5% and Europe grew by 7.0%. North America returned a 6.0% increase in demand. “Following the strong summer traffic season in the Northern hemisphere, 2017 is on course to be another year of strong traffic growth,” IATA DG Alexandre de Juniac said. “However, some important demand drivers are easing, particularly lower fares. As we head towards the end of the year we still expect growth to continue, but potentially at a slower pace.” <br/>
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The race to develop the first electrically powered and autonomous commercial passenger aircraft is accelerating after Boeing Thursday announced plans to acquire cutting edge aviation research partner, Aurora Flight Sciences, for an undisclosed sum. The acquisition of the small Virginia-based company, which last year won an US$89m Defence Advanced Research Projects Agency contract to develop an unmanned hybrid electric test aircraft, comes as Boeing steps up its focus on future aviation technologies. Boeing earlier this year set up Horizon X, a venture capital arm designed to invest in disruptive innovation. One of its first investments was Zunum Aero, a start-up that aims to develop the world’s first commercial hybrid electric-powered passenger aircraft. <br/>
Bombardier is betting on fast-growing markets like India to boost sales of its Q400 and CSeries narrow-body planes, a senior executive said Thursday, at a time when the planemaker faces a trade row over sales to the US. "The company is very focused on expanding into Asia, as we see Asia, and India for sure, as the growth engines of the sector," said Francois Cognard, head of Asia Pacific sales at Bombardier, adding this would be its focus region irrespective of how a heated trade spat with larger rival Boeing pans out. Cognard said he saw India's regional connectivity scheme as "well designed" and likely to boost demand for its aircraft in the country. India's launch of a regional connectivity scheme last year, to boost air connectivity to smaller towns and cities, is seen as a boon for small planemakers. <br/>
The Scottish govt seems to have put its new air departure tax into a holding pattern - and these plans may be up in the air for a while. It's blaming a legal technicality - and foot-dragging by ministers at Westminster. The new tax has to be approved by the EC, it says. Tough EU rules which ban state aid make it potentially problematic for flights to and from the Highlands and Islands being exempted from the tax. Throw in Brexit - and it all gets very awkward. But the Finance secretary Derek MacKay may have other pressing reasons - practical and political - for parking this tax plan. The govt has always argued that cutting air passenger duty will boost connectivity and strengthen the economy. But expert groups have asked - where's the evidence for that? They say it's lacking. <br/>