An unprecedented boom in the US$280b aircraft finance industry is showing signs of faltering as rising interest rates, cut-rate competition and higher oil prices trigger a shakeout in a sector that has attracted a flood of Chinese funding. Conferences in Hong Kong last week saw more than 1,000 financiers, lawyers and airline bosses talk up the fundamentals of an industry that has emerged as a flourishing asset class globally, but in contrast to previous years the mood was one of subdued optimism even as corks popped on new deals. Concerns about central bank tightening, trade rows and currency swings could blow some froth, they cautioned. "I think the party is over in terms of lower interest rates," said Robert Martin, CE of Asia's largest-listed aircraft lessor BOC Aviation. <br/>
general
Satellite-based surveillance system developer Aireon and flight tracking data specialist FlightAware said Monday that they have activated their GlobalBeacon flight-tracking offering for airlines, days before an ICAO tracking recommendation takes effect. GlobalBeacon is a web-based tracking dashboard that provides minute-by-minute aircraft position reports, closing gaps in coverage over oceans and within polar airspace. An airline subscribes to the service through FlightAware and pays a monthly fee per aircraft. The system aggregates data from Aireon’s space-based surveillance network, constructed of automatic dependent surveillance-broadcast (ADS-B) receivers on Iridium Next satellites, and FlightAware’s ground-based ADS-B tracking data and flight-plan information. <br/>
The UK's aviation regulator says concerns over the cost and schedule of a new Heathrow runway must be answered "urgently and decisively". In a letter to the Department for Transport, the Civil Aviation Authority says it has concerns over Heathrow Airport Limited's "information flow". Airlines have tried and failed to get answers to their concerns, CAA CE Richard Moriarty writes. Answers are needed to retain confidence in the third runway project, he says. In his interim update to the DfT, Moriarty acknowledges the complexity of the project, but says there are two important areas of concern - "high quality information" about costs and a revised timetable. Airlines, worried about increased charges to use Britain's biggest airport, have been complaining for at least 18 months about a lack of information, he says. <br/>
The chance that flights will be grounded between the UK and the EU in the event of a <br/>no-deal Brexit is "close to zero", said Cyprus's tourism minister Yiorgos Lakkotrypis. The economy of Cyprus is heavily dependent on tourism, and over a third of its annual 4m visitors come from the UK. Asked about the possible impact of Brexit, and specifically a no-deal Brexit, where the UK would leave the EU next March without new aviation rights, the minister said a worst case scenario on flights would be avoided. The CE of Ryanair has warned that if there is a no-deal Brexit, UK flights could be grounded for up to 3 weeks. Lakkotrypis said that Cyprus would be able to maintain connections with Britain whatever the outcome of Brexit. "Let's not forget we're also members of the Commonwealth," he said. <br/>
Russia’s United Aircraft plans to enhance its customer service capabilities for the Superjet 100, and make customer service a priority for the Irkut MC-21 and CRAIC CR929 programmes. UAC chief Yuri Slyusar said that the company was working with both its foreign and Russian customers to improve the Superjet's after-sales programme. “We intend to invest substantively in after-sales services, both in the central spares stock and in enhancement of the existing stocks capacity…as well as the capacity required for aircraft maintenance,” he says. “Looking ahead, we plan to come up with a single unified after-sales system for UAC commercial aircraft.” Customer service issues and spares shortages have been a major stumbling block with the Superjets operated by Mexican carrier Interjet. <br/>