general

Trade war could moderate growth of pax, cargo demand: IATA

IATA has warned that an escalation in global trade tensions could moderate the strong outlook for long-term passenger and freight demand, but is unlikely to trigger a major crisis for the world's airline industry. In a recently released research note, IATA Economics says moves towards global trade protectionism are not positive for air transport, however at this stage the impact appears to be minimal. “The overall scale of the economic damage depends on both the extent and the severity of any tariffs and other restrictions that are put in place,” it adds. On the passenger side, the Association expects that demand impacts will most likely be driven by lower GDP growth and its impact on incomes. However, its modelling suggests that passenger demand growth will continue at a slightly lower rate rather than reversing course. <br/>

An airline scans your face. You take off. But few rules govern where your data goes

The program makes boarding an international flight a breeze: Passengers step up to the gate, get their photo taken and proceed onto the plane. There is no paper ticket or airline app. Thanks to facial recognition technology, their face becomes their boarding pass. The problem confronting thousands of travellers, is that few companies participating in the program, called the Traveller Verification Service, give explicit guarantees that passengers’ facial recognition data will be protected. And even though the program is run by the DHS, federal officials say they have placed no limits on how participating companies can use that data or store it, opening up travellers’ most personal information to potential misuse and abuse such as being sold or used to track passengers’ whereabouts. <br/>

More than cutting costs: Travel managers now consider employee comfort

Corporate managers used to focus on saving money when it came to employee travel. But now, given the nature of travel — crowded planes, tighter seats, security hassles — corporate managers are considering employee comfort as part of the deal. A plane trip that includes layovers might save money, said Andrew Sheivachman, business travel editor at Skift. “But if that person emerges from the plane too tired to work, or ends up burned out… it’s not worth the trade-off.” Cost continued to be the most important factor in airline contracts, according to a 2016 research report. But more than half of respondents expected traveller comfort to become more important in future agreements with airlines. “Experiences matter,” Sheivachman said. “You’re not just looking at the dollars, you’re empowering your employees to do a good job.” <br/>

EU asks WTO to certify it has removed Airbus subsidies

The EU has asked the WTO to certify that it has complied with WTO rulings on its subsidies for Airbus, attempting to forestall billions of dollars of US sanctions, a document published by the WTO showed Monday. The legal move is the latest step in a 14-year-old trade dispute between the EU and the US over funding for Airbus and its US rival Boeing. In May the WTO appeals body ruled that the EU had failed to remove subsidised govt development loans for the A380, and Europe's newest long-haul jet, the A350, causing losses for Boeing and US aerospace workers. In the latest legal move, the EU said it had informed the WTO in May that it had withdrawn all remaining subsidies and taken appropriate steps to remove their adverse effects, and it wanted a legal ruling to that effect. <br/>

Taiwan to hit back at airlines that say island belongs to China

Taiwan is looking at ways to hit back at foreign airlines that recently caved in to pressure from Beijing to refer to the island as part of China. The transportation ministry is studying countermeasures, according to an official who asked not to be identified. Taipei-based United Daily News reported earlier Monday the measures could include banning offending airlines from using boarding bridges and changing take-off and landing slots. Authorities are also considering offering incentives for carriers that switch to a more neutral wording for Taiwan, such as reducing or eliminating landing fees and facility charges. Retaliation from Taipei would be its first official response to increasing pressure from the mainland. Beijing has successfully pressured 44 international airlines to refer to Taiwan as a part of China on their websites. <br/>