general

Federal regulators are proposing allowing airlines to hold on to their valuable takeoff and landing slots at several big US airports, even if they are not fully using their rights due to lower traffic during the pandemic. The FAA said Friday it plans to extend temporary waivers of minimum flight requirements at Kennedy and LaGuardia airports in New York and Reagan Washington National near Washington, DC, through March 27. Those waivers, approved in April as air travel collapsed, expire Oct. 24. The FAA allocates takeoff and landing slots at congested airports under a “use it or lose it” approach. Big airlines fear losing slots in New York and Washington because they are operating far fewer flights during the pandemic. They are supported by trade groups for US and global airlines. However, budget carriers Spirit Airlines and Allegiant Air and a trade group for North American airports oppose the extension. Spirit said big airlines that control most of the slots will continue to seek more waivers, which it said would limit competition. The airport group said waivers encourage underuse of takeoff and landing slots, which it called a valuable public resource. The FAA proposes to extend less sweeping protections for incumbent airlines at four other airports in Los Angeles, San Francisco, Chicago and Newark, New Jersey, through Dec. 31.<br/>

Despite the reduced air traffic amid the coronavirus pandemic, major air accidents and fatalities are running higher than usual this year, with Asia a major part of the problem. Fatalities involving commercial airliners stand at 315 so far, already exceeding last year's total of 283, according to Aviation Safety Network data. Last month, 21 died when an Air India Express jet overran a runway upon landing in southern India. Asia is the fastest-growing air traffic market, but the growth hasn't been matched by corresponding improvements in safety. "The problem could have been worse if the coronavirus hadn't reduced air travel," said Hiroshi Sugie, an aviation analyst who was a Japan Airlines pilot for 43 years. At the core of the problem is a shortage of pilots and other experts. Though the pandemic has temporarily reduced demand for such professionals, the issue remains unresolved for airlines in Asia. The financial woes caused by the pandemic could worsen the situation as hard-pressed airlines reduce resources for keeping pilots' skills sharp, let alone training new ones. Even before the pandemic, airlines in Asia were under financial pressure amid tough competition. For instance, Air India Express -- an offshoot of national flag carrier Air India -- competes against a number of other low-cost carriers, including IndiGo Airlines, Jet Airways, SpiceJet and GoAir. "In many cases, pilots are not as proficient as they once were, with many just passing their training," said Geoffrey Thomas, head of the site Airline Ratings. Within Asia, safety concerns have led the US FAA to keep Thailand and Malaysia in its Category 2 as not in compliance with the safety standards of the ICAO, a UN body. Airlines in Category 2 countries are not allowed to operate flights to the US. Story has more details.<br/>

A training review for the grounded Boeing 737 Max will begin on Monday in London, the US FAA said, in a key milestone for the plane’s eventual return to service. The FAA said the Joint Operations Evaluation Board for the Boeing 737 Max will take place at London Gatwick Airport and meet for approximately nine days “to review Boeing’s proposed training for 737 Max flight crews” and will include civil aviation authorities and airline flight crews from the US, Canada, Brazil and the European Union. There are several other key steps to be completed that raise questions about if there will be any 737 Max commercial flights before 2021. Boeing did not immediately comment. This week in Vancouver, the EASA conducted flight tests of the Boeing 737 Max after Canada conducted its own tests. After the nine-day review, the results will be incorporated into the draft FAA Flight Standardization Board report, which will then be open for public comment. Then, FAA Administrator Steve Dickson will undergo recommended training and conduct an evaluation flight at the controls of a Boeing 737 Max. He will share observations with FAA technical staff. The FAA will then review Boeing’s final design documentation to evaluate compliance with FAA regulations. The multi-agency technical advisory board will review the Boeing submission and issue a report prior to a final FAA determination of compliance. The FAA will then issue a notice of pending significant safety actions and publish a final directive addressing known issues for grounding and advises operators of required corrective actions before aircraft may re-enter commercial service.<br/>

Two senior Boeing executives who oversaw the development of the 737 MAX defended the company's decisions on a key cockpit system later tied to two fatal crashes, according to testimony before congressional investigators. Michael Teal, then 737 MAX chief product engineer, and Keith Leverkuhn, who was VP and GM of the 737 MAX program, were questioned separately by investigators for the US House Transportation and Infrastructure Committee in May. "I don't consider the development of the airplane to be a failure," Leverkuhn told investigators for the House panel that is to release a final report next week on its investigation into the development of the plane, grounded since March 2019 after two crashes killed 346 people. Leverkuhn defended the decision to tie a new safety system on the MAX, called MCAS, to a single sensor that has been implicated in both fatal crashes. Boeing has since agreed to use data from two separate sensors when the plane returns to service, which could come as early as this year. "I think based upon our understanding and our assumptions of flight crew actions, that it wasn't a mistake," Leverkuhn said. Later in his testimony, Leverkuhn added, "Clearly what was in error was our assumptions regarding the human machine interaction. Because the process relied on the industry standard of pilot reaction to a particular failure. And what was clear post accidents was that assumption was incorrect." Congressional investigators also questioned testimony that Boeing had never conducted an internal financial analysis to determine the impact of whether the FAA would require more expensive simulator training. Teal said that if the 737 MAX design warranted simulator training, Boeing would have created it, while acknowledging that customers may have been disappointed.<br/>

Flying business class isn't what it used to be. Efforts to minimise human interaction and reduce the risk of infection are taking the shine off the most expensive seats onboard commercial aircraft. These days, what's left of premium-grade travel is functional, hygienic and closer to cattle class - only with more legroom. The limitations are one more headache for an industry grappling with a near-total collapse in demand and follow years of luxury oneupmanship among carriers in a contest for the most profitable passengers. Suddenly, it's harder to tell airlines apart when you're up the pointy end. That's making it tougher to win top-paying customers, and risks pushing some to the back of the plane. "There's nobody to help you with your bag, you're not escorted to your seat, and there's definitely no pre-flight champagne," said Sandra Lim, who flew business class to Singapore from Los Angeles with Singapore Air late last month. "It feels like it's reverted back to economy class." Crew wore face masks and eye shields, and avoided contact and shared touch points where possible, Lim said. While passengers could ask for a drink, they weren't freely offered, and there were no menus. Meals came with everything on one tray, just like in economy, rather than in separate courses. "When you strip away the food and service, it's just a mode of transport to get from point A to B," said Ms Lim, 38, a food and beverage consultant. Some overseas routes have resumed, but traffic worldwide has barely started to creep back. International passenger demand was down 92% in July. The planes that were flying were typically about half full, according to the IATA. It's also not clear to what extent the premium market, which IATA says generated 30% of airlines' international revenues in 2019, can recover. Story has more.<br/>

In the first flush of the pandemic, millions of British travellers tried to be reasonable. With holiday hopes dashed and airlines and travel companies facing ruin, they agreed to accept vouchers instead of refunds. But now a great many say their benevolence has backfired as they are confronted with a nightmare maze of unexpected charges and hurdles when they try to use them to book new breaks. Some of those who are trying to rebook breaks are being charged unexpected extras or being hit with complex rules that make it difficult to redeem those vouchers. Restrictions on what they can be used for hinder like-for-like replacement of the original holiday. Many are particularly aggrieved because they were denied any choice by their provider, even though consumer regulations entitle them to claim a full refund. Martyn James from the consumer complaints website Resolver, said: “It’s outrageous that people who chose to help airlines by taking vouchers are now being told they can’t redeem them for cash if they can’t or aren’t able to use them.” He said: “There’s a real sense of anger about the behavior of certain airlines, given the problems with customer service and ignoring of refund rules that took place when lockdown began. If the industry wants to tempt us back on the planes, it needs to play fair.” BA was among a number of airlines to remove the refund option from its website in March, persuading passengers they needed to apply for vouchers instead.<br/>

The UK’s fluctuating quarantine restrictions are again leading to punishing airfares for vacationers forced to rush home on short notice. Travelers scrambling to return from Portugal before a rule requiring self-isolation kicks in on Saturday morning faced paying more than GBP500 for a one-way ticket on Friday, based on fares from both British Airways Plc and Jet2holidays Ltd. Airlines have been vocal critics of the UK’s quarantine regime, claiming it stifles demand. But carriers have in turn been criticized for charging high prices to travelers blindsided when a quarantine is imposed with little or no warning. “At a time when the airlines are going to be hugely reliant on public goodwill, I would question whether it’s the right decision to be making lots of holidaymakers extremely angry about the prices they’re paying,” said Rory Boland, a travel editor at Which?, a consumer advocacy group. When the UK added France to its quarantine list in August, 160,000 Britons vacationing in the country faced a chaotic scramble for tickets. A spokesman for EasyJet said pricing is demand-led and the airline doesn’t artificially increase fares. BA said it has reviewed its schedule and added additional flights from Portugal, while a Jet2 spokesperson didn’t immediately comment. The reason fares rise “is largely the system logic which is triggered at higher capacity,” said John Strickland of airline advisory firm JLS Consulting. “It doesn’t mean the airlines aren’t making a bit more money on a few flights at the last minute, but it’s not some malevolent plan.”<br/>

Teams of Australian diplomats are being deployed to Heathrow airport to help stranded Australians who have been forced to camp at the airport. There are now more than 25,000 Australians overseas who have registered an intention to return home, but who cannot access flights due to the government’s strict international arrival caps. The caps, introduced in July then tightened shortly after to ease pressure on Australia’s mandatory hotel quarantine system, mean only 4,000 passengers can enter Australia each week, with some flights limited to carrying as few as 30 passengers. Airlines frustrated at the caps have begun to publicly acknowledge they are cancelling the tickets of economy, and increasingly business class passengers, so they can use their limits for more expensive tickets and remain profitable under the caps. While the caps apply to arrivals from all countries, the Australian high commission in the UK has been forced to take extra steps to deal with the impacts of the caps due to the higher number of Australians stuck in the country. “Caps on international passenger flows have made it harder to head home, but we’re determined to ensure every available seat has an Australian in it,” the high commission tweeted on Tuesday. It said the teams were meeting with passengers whose flights had been cancelled, and liaising with airlines, airports, and governments to find any unused seats. “If you need the team, flag them down in Terminal 2 or Terminal 5,” the post said. The teams presence at the airport follows previous government advice for Australians to start crowdfunding campaigns to cover living expenses and pay for higher class flights home.<br/>

The Arab Air Carriers Organization (AACO) displayed on Saturday the figures the industry is expected to record in the cases of a speedy recovery and a slow one while revealing losses. The AACO pointed out that the global economy is speculated to shrink by 4.9% while the Arab economy is expected to contract by 5.7%. The former can recover fast in 2021 while the speedy recovery of the latter will occur in 2022. In case of slow recovery, both will improve in 2023. Passenger flights declined by 54.7% globally, and 57.1% on the Arab scale. As for the recovery, passenger flights can return to 2019 figures on the global and Arab levels by 2024 in case it is fast. If it is slow, the recovery will happen by 2027. The air transportation losses in 2020 are estimated at $5.5t globally and $194m in the Arab World. The revenues of the tourism and travel sector in the Arab World are speculated to plummet by 72.9%, equivalent to $72b.<br/>

Oman’s government has welcomed the decision by Bahrain’s leadership to establish full normalisation of diplomatic relations with the state of Israel – potentially allowing a further expansion of Israeli-Arab air services. Bahrain is the second Arab nation within a month to reach such a decision, and the support of Oman signals a further formal shifting of the Gulf states’ attitude towards Israel. The latest agreement was reached during a call between the king of Bahrain, Hamad bin Isa bin Salman al-Khalifa, and Israeli prime minister Benjamin Netanyahu. Bahrain’s government says the measure is a “historic step” towards achieving Middle East peace, following the similar agreement between Israel and the United Arab Emirates in mid-August, and will support “stability, security and prosperity” in the region. If the Bahraini-Israeli normalisation follows a similar path to that of the UAE, it opens the prospect of future non-stop flights by the kingdom’s Gulf Air to Israel as well as services by El Al, and other carriers, to the Bahraini capital Manama. Neither Gulf Air nor El Al has yet publicly commented on the situation.<br/>

El Salvador said Saturday it plans to reopen airports for international flights starting Sept. 19, but with a twist: incoming passengers will be required to show a negative PCR coronavirus test no more than three days old. Anyone lacking the test would be denied entry. The new measures were contained in a notice to airlines published by the country’s port authorities. It was unclear whether the requirement would apply to Salvadoran citizens, who have a constitutional right to re-enter their country. The Central American country has enacted some of the region’s strictest pandemic measures, like closing borders, imposing a national quarantine and dispatching police and the army to detain violators. Some of those measures have been challenged in court. Roberto d´Aubuisson, the mayor of the city of Santa Tecla, who had been trapped outside the country for months after the border and airport closures in March, called on the government to clarify if the new measures apply to Salvadorans.<br/>

As COVID-19 grounds swaths of airline fleets, companies that profit off the dismantling and trade of aircraft parts are seeing early signs of an expected rebound in activity as carriers accelerate plane retirements. While companies that store, dismantle, and buy and sell used aircraft parts see opportunity in parked planes, a sudden increase in the supply of used parts risks depressing prices in the estimated US$3b a year industry, despite demand from airlines seeking to lower maintenance costs, executives and analysts say. Even as aviation remains in a slump because of the pandemic, the head of US commercial aerospace company GA Telesis was made aware of five airlines calling for offers to dismantle planes. Across the border, Canada's Aerocycle is bidding to buy grounded planes for the first time to dismantle and resell for parts, instead of just recycling aircraft on consignment from carriers, its CEO said. The fate of the world's pool of grounded planes is being closely watched by players in the market for used-serviceable material, with one report from consultants Oliver Wyman forecasting "a tsunami of demand" for such parts, as airlines seek to lower costs. Used materials could compete with new parts and defer immediate airline demand for "aftermarket" spend, referring to the maintenance, repair and overhaul sector, now estimated by Naveo Consultancy at US$50b. As a result, one industry executive said he has avoided buying parts, fearing a slump if too many planes are dismantled. "I think we’re going to see a rapid decrease in pricing,” said the executive, speaking on condition of anonymity. The number of planes dismantled for parts or scrap could double to 1,000 annually through 2023, up from roughly 400 to 500 planes a year since 2016, according to data firm Cirium. Naveo estimates 60% of global passenger and cargo fleets are currently flying. In 2020, Naveo expects 2,000 aircraft will be retired, or parked and not returned to service, up from 680 in 2019. But those planes would not all be immediately dismantled, as some carriers wait in case market conditions improve, managing director Richard Brown says. Story has a lot more detail.<br/>

Christmas deliveries are likely to be delayed this year because of the pandemic’s impact on air travel, according to cargo experts. The plunge in traveller numbers due to Covid-19 restrictions has sent air freight rates soaring and slashed cargo capacity, according to freight forwarding company Flexport, as airlines cancel flights or switch to using smaller planes. Supply chain disruption means that goods are likely to be wrongly described because they are being advertised so long before they arrive at retailers, says Flexport, which co-ordinates international shipments for businesses. Another wave of Covid-19 restrictions will also see the price of personal protective equipment spike up again, according to Flexport director, David Wystrach, as some items are still travelling by air. Data collected by TAC Index, a Hong Kong-based air cargo pricing data company, showed that although air freight rates were falling from their May peak of $5.88 per kilo for the Hong Kong-Europe route, they were still higher than February’s pre-pandemic level of $2.52 per kilo, or than in any year pre-2020. Similarly, data from Seabury Consulting showed that global air cargo capacity was still 26% lower than last year’s level in the fortnight to Aug 29, as airlines tended to use smaller jets than usual, such as the A350, B787 and the B777 instead of the A380. Wystrach, a senior director of air freight at Flexport, cautioned that another peak was coming for air freight rates as fewer flights meant reduced capacity and a fall in passengers meant some flights had been cancelled altogether. “This coming week could be the silence before the storm,” he said. “Indicators suggest we are heading for a peak-season in which the impact of summer and winter schedule changes will not be the same as in the years before.”<br/>