general

MRO providers battle demand-led market

Maintenance, repair and overhaul providers are struggling for survival because they are unable to match intensely seasonal demand with higher prices. Most European airlines perform their maintenance over a 5-month period during the winter, so they can maximise their aircraft utilisation during the lucrative summer months. However, Austrian Technik Bratislava MD Wolfgang Henle told delegates at MRO Europe in London that this is pushing MROs to breaking point. “Just a year ago, I had to close down one of our MROs and lay off 150 employees,” he said. “In order to survive, prices for winter maintenance have to double—everyone wants to do the same thing at the same time.” MROs struggle to cope with training enough people to meet this surge in demand, which does not fit with the basic economics of supply and demand. <br/>

UK: Airlines slam proposals to ban air mile programs and tax frequent flyers

Airlines operating in the UK have dismissed a report that called for air miles programs to be banned and additional taxes applied to frequent flyers. In a report published Thursday by Imperial College London for the Committee on Climate Change, academics proposed several measures that govts should implement to reduce the impact aviation was having on the environment. Among recommendations was a call for the UK govt to “introduce a ban on air miles and frequent flyer loyalty schemes that incentivise excessive flying.” The report also urged lawmakers to introduce a levy targeting frequent flyers. A spokesperson for the UK’s Board of Airline Representatives said there was “not really any rationale” for the report’s recommendations to be implemented. <br/>

German air travellers get 6-month buffer before climate levy

New climate protection surcharges on German air travel will begin in April, giving passengers a temporary reprieve before tickets become more expensive and providing airlines time to adjust pricing. Lifting surcharges is an element of Chancellor Angela Merkel’s plan to nudge consumers to opt for trains instead of planes, above all in domestic travel. The increased fees are aimed at offsetting a cut in value-added tax on rail tickets that will take effect from January, ministry officials reported Monday. German domestic air travel has stagnated for years, falling 0.8% to 23.5m passengers in 2018 compared with the year before, according to the Federal Statistics Office. International flights from Germany are soaring, rising 5.5% last year to 99m passengers. <br/>