general

The Trump administration Wednesday made public the federal government’s first proposal to control planet-warming pollution from airplanes, but the draft regulation would not push the airlines beyond emissions limits they have set for themselves. President Trump is still pressing forward on his three-and-a-half-year rollback of environmental standards, and the proposed airline rule would stave off an impending lawsuit by putting the federal government in compliance with a legal requirement that it regulate airplane greenhouse emissions. “This is the third time in the past two years that this administration has taken major action to regulate greenhouse gases in a way that is legally defensible, reduces CO2 and protects American jobs,” said Andrew Wheeler, the head of the EPA on Wednesday. Wheeler said he was referring to a 2019 regulation on greenhouse emissions from power plants and an April rule governing emissions from vehicle tailpipes. Both of those rules replaced far more stringent climate change standards developed by the Obama administration, and in both cases the new rules allow for more planet-warming emissions than their predecessors. The airline rules would be similar; critics say the substance of the proposal does little more than codify a set of standards largely created by the aviation industry itself, and is unlikely to diminish the industry’s contribution to global warming.<br/>

The main association of European airlines called Wednesday on the EU to extend the suspension of its "use-it-or-lose-it" rules governing slots at airports through the slow winter season, saying the return of demand is uncertain. In March, the EU formally shelved until October 24 the requirement that airlines use 80% of their slots -- take-off and landing authorisations -- or lose them the following year as coronavirus lockdowns meant that many flights were being cancelled. Although airlines resumed some flights as EU nations relaxed most internal travel rules, the A4E airline association said there still aren't enough people who want to fly. "The number of slots we have is too many based on the demand," said Ben Smith, chairman of A4E and the head of Air France-KLM. The summer vacation season is when European airlines operate the most flights, while operations are scaled back during the rest of the year. Airports have been unhappy that some airlines are cancelling flights at the last minute, not allowing airports to allocate slots to other carriers. At least one European airline is believed to want the suspension to end in the hope of getting more slots. Smith said "the reason that we're not operating is not to block slots, the reason we're not operating is because we don't have access to many markets (and) there's no demand."<br/>

International airlines flying into Australia are having to bump passengers, often with little notice, in order to meet strict daily passenger caps set for airports still accepting flights from overseas. The passenger limits introduced to alleviate pressure on quarantine facilities in Australia have meant airports like Brisbane can only accept 70 passengers per day, while services bringing Australians back to Sydney are limited to as few as 30 travellers per flight. While the passenger caps have seen a surge in the cost of airfares into Australia – the cost of a one-way flight from Doha to Sydney on Qatar Airways is $3,729 in economy, a class of seat booked out until 9 August – some economy travellers who are concerned they will be bumped due to their cheaper seats are upgrading to business class tickets. However airlines including Qatar Airways denied passengers with cheaper tickets would be more likely to be rescheduled, telling the Guardian that passenger lists were based on a range of criteria, including compassionate and medical requests. Originally introduced earlier this month “in order to manage and maintain quarantine arrangements” at hotels, the caps have shrunk from their original limits, now allowing 350 arrivals per day at Sydney, 75 per day at Perth and 70 per day at Brisbane. Melbourne airport remains closed to international visitors, with incoming capacity for Adelaide and Canberra assessed on a case-by-case basis. Story has more details.<br/>

The coronavirus pandemic has upended the boom in global air travel that fueled the fortunes of Boeing and Airbus over the past two decades. But as they lose orders and cut staff, the Chinese aerospace company hoping to challenge them is seeing an opening. On July 10, Air China Flight 1109 took off from Beijing for a city in Inner Mongolia, the first time the country’s flag carrier flew a plane made by Commercial Aircraft Corp. of China (known as Comac), the state-owned manufacturer that until then had only managed to provide planes to third-tier carriers such as Genghis Khan Airlines. China Southern introduced a Comac aircraft a few days later. With Covid-19 paralyzing air travel and tensions rising between China and the West over issues including Hong Kong’s democracy movement, state-backed Comac may finally have an opportunity to start narrowing the gap with Western manufacturers, which have seen their finances pummeled during the pandemic. The coronavirus crisis “could be one of those things that alters the playing field substantially,” says Robert Spingarn, an analyst with Credit Suisse Group AG. “While aerospace companies are busy putting out the fires of today, somebody else who doesn’t have those concerns and is under less pressure may be able to make something happen.” Story has more.<br/>

Global Eagle Entertainment, the provider of in-flight WiFi and related services, filed for bankruptcy with plans to sell itself to its lenders including Apollo Global Management. The Chapter 11 filing in Delaware allows Los Angeles-based Global Eagle to continue operating while it seeks court approval for a plan to repay creditors. This includes selling itself to an investor group with Apollo, Eaton Vance Management and certain funds and accounts managed by BlackRock Financial Management, according to a company statement. The deal is worth $675m, Global Eagle said, and will cut its total debt by about $475m. The company listed assets of $630.5m and liabilities of $1.09b in its petition, including $855.6m in funded debt. It employs about 1,100 workers. The company sells internet, media content and data analytics to airlines and cruise lines, among others, which have been devastated by Covid-19. Aviation, one of Global Eagle’s largest customer segments, isn’t expected to see a substantial recovery in passenger traffic until 2023, according to S&P Global Ratings, while major cruise lines have suspended operations through mid-September. “The recent decline in demand for its customers’ services as a result of Covid-19, and the uncertainty regarding a potential resurgence of the pandemic, has had a swift and negative impact on the company’s operations and cash flow,” according to court papers. The pandemic compounded existing pressure from the heavy debt load at Global Eagle, which lost about $153m in 2019 and posted negative cash flow for the past two years, the company said.<br/>