The US has taken the lead in the global aviation recovery from China, where a Covid-19 outbreak in Guangdong province has undone months of steady growth in air traffic. Airlines in the US are taking advantage of a vaccine rollout that’s reached 52% of the population. Looser restrictions have made domestic air travel an almost-routine experience, save for the facemasks, with capacity for flights within the country at about 84% of 2019 levels, based on data from flight-tracking firm OAG. Until recently, China set the standard, with domestic travel powering a comeback that’s stood above 2019 levels for most of this year. After bringing the virus under control in the first half of 2020, the world’s most populous country was able to quickly restart its economy and went on to displace the U.S. as the world’s largest air-travel market. That progress has reversed with the arrival of the Delta variant of the coronavirus first identified in India. Officials in southern China’s Guangdong instituted a lockdown late last month, requiring people to show a negative Covid-19 test before leaving the capital Guangzhou, a major hub for transportation, manufacturing and shipping. Now more overall capacity is being offered in the U.S., based on OAG data. “Asia finds itself in a difficult position, with some short spikes occurring and also the vaccine rollout in many markets behind the rest of the developed world,” said John Grant, chief analyst at OAG. The curbs have dragged down airline activity, with Guangzhou-based China Southern feeling the brunt of the drop-off. Just last year, Guangzhou Baiyun International Airport knocked Hartsfield-Jackson Atlanta International off its perch as the world’s busiest hub. <br/>
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The Biden administration is forming working groups with Canada, Mexico, the EU and the UK to examine how to reopen international travel as the coronavirus pandemic eases, a White House official said Wednesday. The announcement, which came shortly before President Joe Biden arrived in the U.K. for a Group of Seven summit, comes as international allies and airlines have pushed the White House to ease travel restrictions amid a decrease in US coronavirus cases. The working groups will include members of the White House COVID Response Team, the National Security Council, the Centers for Disease Control and Prevention, as well as the Departments of State, Homeland Security, Health and Human Services and Transportation, the official said. The US has signaled it is moving toward reopening travel. The State Department on Tuesday loosened its travel warnings for dozens of nations, including France, Canada and Germany. The status change - from level 4, or “do not travel” to level 3, or “reconsider travel” - was made after the CDC changed the methodology for its travel health notices, according to the State Department. It was the first major relaxation of such warnings since the early months of the pandemic, and was designed to “provide US travelers detailed and actionable information to make informed travel decisions,” the Department said.<br/>
Canada on Wednesday took a cautious first step toward easing COVID-19 border restrictions, saying it was prepared to relax quarantine protocols for fully vaccinated citizens returning home starting in early July. Canada’s air and land borders have allowed for only essential travel since March of last year, and people returning home are required to quarantine for 14 days. If they arrive by air, they also must stay in a designated hotel until they receive a negative COVID-19 test. “The first step ... is to allow fully vaccinated individuals currently permitted to enter Canada to do so without the requirement to stay in government-authorized accommodation,” Health Minister Patty Hajdu told reporters on Wednesday. The easing of restrictions will hinge on COVID-19 case numbers and vaccinations, she said. Canadian businesses, especially airlines and those that depend on tourism, have been lobbying the Liberal government to relax restrictions. Hajdu made clear Ottawa would act slowly.<br/>
Joe Biden will meet Boris Johnson on Thursday ahead of the Group of Seven summit, where they will commit to resume travel between the UK and US as quickly as possible. How soon remains very much an open question. The two leaders will meet for the first time in Cornwall, southwestern England, and launch a joint task force to explore options to resume travel between their countries. Before the coronavirus pandemic, more than 5m Britons visited the US and over 4.5m Americans visited the UK every year, according to figures released by Johnson’s office. The US is expected to make a similar commitment to the EU next week when Biden meets continental leaders in Brussels, according to a draft statement seen by Bloomberg. In a dramatic agenda-setting gesture, Biden will announce on Thursday the US will buy 500m doses of Pfizer Inc.’s shots to share internationally. At the same time, Biden’s national security adviser Jake Sullivan downplayed the chances of travel opening up soon. “I don’t think the working groups will finish their work by the time the trip is through so we’re not currently anticipating any specific announcements,” he told reporters. The idea of vaccine passports has also been floated, especially by countries dependent on tourism, though it’s unlikely to gain much traction at the G-7. There are growing signs that a fresh Covid wave is starting to hit the UK and other countries, with new strains emerging and infections on the rise. Another 7,540 people tested positive for the coronavirus in the UK on Wednesday -- the highest daily cases since the end of February. That may get in the way of plans to further lift restrictions, even if the economic price is high. Johnson himself is worried about it and at least one of his cabinet ministers has warned people to avoid trips overseas.<br/>
European airlines are pushing against Brussels imposing tougher emissions rules under the EU’s long-awaited climate package, according to documents obtained by a leading environmental group. The documents obtained by Influence Map through freedom of information requests show that airlines and industry bodies have been lobbying against stricter EC rules for the sector under the EU’s carbon-trading system. They have also objected to the creation of new taxes for carbon-intensive fuels, using their pandemic-ravaged balance sheets as an argument against tougher regulations. The industry efforts come as the Commission prepares to unveil a host of green legislation in mid-July as part of its work to slash the region’s emissions by 55% by 2030 compared with 1990 levels. Lufthansa wrote in January to Frans Timmermans, EU vice-commissioner for the Green Deal, to complain about the “unlevel playing field” that new rules, such as requirements for carriers to use a certain amount of sustainable fuel, would create. European airlines last year committed to reaching net-zero emissions by 2050, which they plan to achieve using a mix of fuel-efficient aircraft, sustainable fuels, offsetting and new technologies such as hydrogen and electric-powered aircraft. These commitments have been undermined by the lobbying against short-term climate measures, according to green advocacy groups. “The aviation sector has communicated high-level support for net-zero EU aviation emissions by 2050 while opposing national and EU-level climate regulation to help deliver that target in,” said Influence Map.<br/>
The UK competition regulator has launched enforcement cases into Ryanair and British Airways after the airlines refused to offer customers refunds for flights they were unable to take during the pandemic. The announcement on Wednesday by the Competition and Markets Authority brought a furious response from BA, which said the investigation was “incredible” and any punishment could put jobs at risk. The CMA said it was investigating whether BA and Ryanair had broken consumer protection law and had written to both companies detailing its concerns. The regulator opened the probe in December. During the pandemic, when customers were unable to fly because of lockdowns in the UK, BA offered customers vouchers or the chance to rebook their flights and Ryanair only provided the option to rebook. Andrea Coscelli, CE of the CMA, said: “While we understand that airlines have had a tough time during the pandemic, people should not be left unfairly out of pocket for following the law. Customers booked these flights in good faith and were legally unable to take them due to circumstances entirely outside of their control. We believe these people should have been offered their money back.” The investigation is a new headache for BA and Ryanair as the airline industry faces the growing prospect of a second lost summer of travel. Story has more. <br/>
The UK aviation sector has warned that airports are likely to lose at least £2.6bn this summer as the “chaotic” Covid traffic light system halts international travel. Airports said the coming months could deal a heavier financial blow than 2020, while airlines called for grants to offset the impact of travel restrictions and protect jobs. The Airport Operators Association (AOA) said with fewer countries on the green list now than on the travel corridors last summer, owing to the government’s “overly cautious” restrictions, UK hubs were likely to lose even more than the GBP2.6b in revenue lost from April to September 2020. Last year passenger numbers reached just 22% of pre-pandemic levels in August, when the greatest number of travel corridors allowing quarantine-free travel were designated by the government. But only 1.7% of the passengers who flew abroad in 2019 went to destinations on the green list, which exempts travellers from quarantine on return to the UK. The AOA CE, Karen Dee, said: “The government’s overly cautious approach to reopening travel has real-world consequences for the 1.6m jobs in the UK aviation and tourism industries.” She said unless the government extended the green list and made Covid testing for travellers cheaper, “aviation is in for an extremely difficult summer”. Dee said if the government decided it could not reopen travel, it should stand ready to give substantial financial support to the aviation and tourism sector, with airports being backed to remain open for critical services.<br/>
Airlines based in Britain have told the government they will need industry-specific support to help them survive if COVID-19 rules continue to keep travel markets shut. Companies including BA, easyJet and Ryanair are in a deepening crisis after Britain's plans to restart travel on May 17 following a 4-1/2 month ban on foreign holidays fell far short of their hopes. Britons are still discouraged from travelling to most countries, and since the May reopening, the government has tightened the rules, removing one of the few destinations that was open, Portugal, from a safe travel list. As July and August approach, the months when airlines make most of their profits, there are worries the summer season may be lost for a second year in a row, risking airline viability and jobs. "If a meaningful reopening is not possible during the summer ... then targeted economic support will be essential to ensure UK airlines are able to reach the point when a restart is possible, in order to protect many tens of thousands of jobs," industry lobby Airlines UK said in a letter to finance minister Rishi Sunak on Thursday. Come the end of September, government support schemes to protect jobs are also due to end, a worry for airlines that might still be grounded due to foreign travel restrictions. <br/>
Most airliners will rely on traditional jet engines until at least 2050, with the introduction of zero-emissions hydrogen limited to regional and short-range planes, Airbus told EU officials in a briefing released on Thursday. The planemaker has emerged as the industry’s leading champion for hydrogen propulsion, saying it plans to develop the world’s first zero-emission commercial aircraft by 2035. It has not publicly said whether the technology will be ready in time for the European industry’s next major milestone - a replacement for the medium-haul A320 in the 2030s - but February’s briefing to EU officials appeared to rule this out. “Zero-emission hydrogen aircraft will be primarily focused on regional and shorter-range aircraft from 2035. Which means that current and future iterations of highly efficient gas turbines will still be required as we move towards 2050, especially for long-haul operations,” the presentation said. Slides from the presentation to the office of EC VP Frans Timmermans were released by InfluenceMap, an investor-led climate lobbying watchdog which said it obtained them through a freedom of information request.<br/>
Airbus is poised to begin taking orders for a freighter version of its A350 wide-body as soon as next month, in a challenge to Boeing’s dominance in the market for dedicated cargo aircraft. The planemaker has been speaking to more than a dozen potential customers and will seek board authorization to market the new plane in the coming weeks, provided it can line up enough commitments, according to people familiar with the matter. The program could officially launch by year-end, said the people, who sought anonymity discussing confidential matters. Going after a segment where Boeing has long held sway would mark a major strategic push for Airbus. CEO Guillaume Faury said in April that he’s keen to challenge his US rival and that the A350, a modern, lightweight plane with carbon-fiber wings and hull, would be “a strong candidate” for a freighter. “Leaving Boeing in an unrivaled position is a little dangerous for Airbus,” said Jefferies analyst Sandy Morris. “It’s as much about addressing spots where your competitor is strong as it is about addressing weaknesses.” The cargo version would be based on a modified A350-900 and may be slightly longer than the passenger version, according to the people. It would take four to five years from the launch date to secure regulatory approvals and enter service, the people said.<br/>