Global air passenger traffic was up 7.8% in June, reflecting a healthy start to the peak summer travel season in the northern hemisphere, but overall demand through June has moderated in 2018 compared to the first-half of 2018, according to IATA’s latest Air Passenger Market Analysis. Compared to April and May 2018, in which year-over-year passenger traffic growth was about 6% each month, June’s results were strong, considerably ahead of the 5.5% 10-year average pace. But through June 30, passenger traffic has increased at a 7% rate, down from 8.3% in 1H 2017. IATA attributes the slowdown to a 60% rise in fuel prices over the past year, noting that fuel costs are up about 125% from their low point in early 2016. <br/>
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IATA is pursuing its complaint against Honeywell to EU antitrust regulators, it said Tuesday, even as it struck a deal over a similar grievance with engine maker CFM. IATA filed a complaint with the EC in 2016 after some of its member airlines were quizzed by regulators about aviation equipment makers in the aftermarket repairs market and whether they abused their dominance. One element of the complaint involved the CFM56, the world's best-selling jet engine, and another Honeywell's APUs. IATA July 31 withdrew the CFM complaint after the company agreed to open up engine maintenance services. IATA said it was concerned about certain business practices that its members believe limit competition in the market for APU maintenance, repair and overhaul services. Honeywell is the largest producer of gas turbine APUs found on many aircraft. <br/>
A lawsuit is seeking to force the nation’s airlines to make big changes in order to better accommodate travellers with disabilities. The suit filed this month against the US DoT accuses the agency of unlawfully delaying rules aimed at adding accessible restrooms to single-aisle airliners. In 2016, Congress directed the DoT to release rules on airplane restroom accessibility, among other issues, by July 15, 2017. However, to date, the agency has not released a rule on lavatory wheelchair access on single-aisle aircraft and the issue was recently moved to the DoT's long-term agenda. “We simply want DoT to move forward with the rulemaking process as Congress required. We have waited long enough,” said David Zurfluh, president of Paralysed Veterans of America. <br/>
In a bid to give relief to airlines struggling from high costs of fuel and a weaker rupee, the Civil Aviation ministry is set to seek inclusion of jet fuel in the Goods and Services Tax (GST). A report quotes Union Civil Aviation minister Suresh Prabhu as saying, “Fuel is an important variable cost for airlines. We are aware of the situation.” Civil aviation secretary RN Choubey said it will be a big relief for the industry if the GST Council decides to bring ATF under the ambit of GST. Currently, the airlines pay VAT levied by states on ATF. The proposal to include ATF under GST is currently before the GST Council. However, it has yet to be taken up for consideration. Since India is a net importer of fuel, the input costs of airlines have gone up. Ticket prices, however, have not risen proportionately due to overwhelming competition. <br/>