IATA chief economist Brian Pearce believes the industry should be braced for more difficult conditions over the next 12 months, amid continued market challenges and the heaviest falls in air freight demand since the financial crisis a decade ago. Thursday, Pearce flagged that conditions faced by airlines had grown more difficult as costs – notably around fuel and labour – have risen. "I think what the issue has been is in the last 12 months suddenly the industry has lost its ability to recover those costs and unit revenues have started falling, rather than rising to recover the cost issues that we've got," notes Pearce. He suggests there are indicators that, after an unprecedentedly long positive economic cycle, a recession could be around the corner. <br/>
general
Boeing said it told US regulators “multiple times” that it had expanded the role of flight-control software later linked to 2 fatal crashes, and that FAA personnel observed the system operating in flight tests before the 737 Max was certified for service. The statement, posted online Sunday, provided a broader explanation to last week’s bombshell revelation that a former senior Boeing pilot had described MCAS as “egregious” to a colleague. The latest controversy swirling around the grounded 737 Max adds to the pressure on the planemaker and CE Dennis Muilenburg as directors and senior executives gather in San Antonio, Texas, for a regularly scheduled board meeting Sunday evening and Monday. Delays in getting approval to return the plane to service have cost Boeing at least US$8.4b. <br/>
Boeing and the FAA are engulfed in a public rupture over a bombshell revelation about the 737 Max, and the timing couldn’t be worse -- just as the planemaker and the regulator are working to get the grounded jet back in the skies. The feud centres on messages between senior Boeing pilots in late 2016, as the aircraft was in testing. One of the pilots recounted a rocky simulator trial of software known as MCAS, which would later play a role in 2 fatal crashes. The handling performance was “egregious,” he said. The FAA blasted Boeing Friday for not sharing the transcripts, even though the company had discovered the instant messages months earlier. Boeing gave the documents to the Justice Department in February. But the company didn’t inform the FAA because the regulator is also a subject of the same criminal investigation. <br/>
The US moved to further hurt Cuba's vital tourism industry by tightening the ability of the country's airlines to lease aircraft. The US Department of Commerce said it was revoking existing licenses for US companies leasing aircraft to Cuban carriers, and will deny future applications for aircraft leases. The move could make it harder for Cuba to service its rapidly growing tourism sector, a key source of foreign revenue for the poor country. Washington has stepped up pressure on Havana due to its support for the embattled regime of Venezuelan president Nicolas Maduro. It was not immediately clear how many aircraft the move would impact. Cuba's cash-poor carriers depend on aircraft rented from leasing companies or other airlines, which are often very old. <br/>