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Airlines face long haul to reach sustainable fuel goals

When an estimated 20,000 people arrive in Glasgow for the UN climate change conference this weekend, they will draw inevitable jibes about the tonnes of carbon emitted by the aircraft many fly in on. The airline industry, acknowledging the problem, this month pledged to reach net zero flying by 2050. But the “sustainable aviation fuel” that forms the core of its strategy is scarce, costs multiples of petroleum-based jet fuel and in some cases may cause changes in cropland that undercut emissions goals, analysts say. Flying is one of the hardest industries to decarbonise and technologies such as electricity- or hydrogen-powered aircraft are years from carrying a plane full of people over long distances. Commercial aviation accounts up to 5% of global warming and its travel growth is “unparalleled” by any other mode of transport, led by middle-class and white-collar flyers in developing and emerging economies, according to the International Energy Agency. The IATA’s 2050 target relies heavily on changing fuel mixes to achieve nearly two-thirds of its planned reduction in greenhouse gas emissions. The trade group estimates about 450b litres a year of sustainable aviation fuel (SAF) will be needed in 2050, or about two-thirds of total fuel consumption. Current annual SAF production is only 100m litres, the Iata estimates. United Airlines has laid out plans to buy nearly 7bn litres of SAF over the next 20 years, which it says is the biggest commitment in the industry. One of its jetliners took a test flight from Houston this month with an engine that burnt fuel derived from sugars found in corn. But sustainable fuel still represents less than 1% of the fuel United currently burns in a normal year. “There’s no sustainable aviation fuel that is cost competitive yet with traditional jet fuel,” said Scott Kirby, United CE. “That’s why it’s important for us to invest and drive down the cost curve.” <br/>

United will begin selling mini bottles of hard liquor next month

United is getting ready to resume hard liquor sales just in time for the busy holiday travel season. The airline confirmed that it will expand its in-flight beverage service Nov. 15 to include miniature bottles of liquor on select flights in domestic, Canada and Latin markets. Drink sales are offered in economy class on flights at least 301 miles long and customers can request one cocktail, beer, wine or hard alcohol at a time. Purchases can be made through United's contactless payment system. United is also swapping in some new choices next month, with black cherry-flavored White Claws replacing its mango-flavored hard seltzer, Goose Island Neon Beer Hug IPA replacing Breckenridge Brewery Juicy Drop Hazy IPA and Kona Longboard Island Lager replacing Kona Big Wave Golden Ale. After briefly halting in-flight drink service due to the COVID-19 pandemic, United began reintroducing wine and beer sales in November 2020. Other airlines are still holding off on resuming in-flight adult beverage services.<br/>

US court postpones decision on Avianca's restructuring plan

A court decision on the bankruptcy exit plan of Avianca Holdings has been postponed pending the receipt of additional documentation, the airline group announced. Judge Martin Glenn of the US Bankruptcy Court in the Southern District of New York postponed an October 26 hearing, setting a deadline for additional documentation to be submitted by 1700L (2100Z) on October 28, 2021, Avianca Holdings said in a SEC filing. “The Company remains focused on advancing its Chapter 11 process as efficiently as possible,” it said. Avianca Holdings is asking for the approval of a restructuring plan that will reduce its debt by about US$3b, preserve more than 10,000 jobs, and transfer majority ownership to lenders and noteholders. Creditors were asked to submit their votes on the plan to the court by October 15. <br/>

Moscow-bound Egyptair flight turns back after hoax threat

A threatening letter that forced an EgyptAir plane bound for Moscow to return to Cairo was found to be a hoax following a security review, Egypt's national carrier said on Wednesday. Flight MS 729 landed in Cairo airport 22 minutes after taking off earlier on Wednesday. "After the landing of EgyptAir flight MS 729, model A220-300, it was confirmed that the threat was negative after reviewing the security procedures," the airline said. Another plane was prepared for the flight to Moscow and later took off with 93 passengers on board, it added later.<br/>

Air New Zealand suspends cash burn guidance, draws down loan

Air New Zealand said Thursday it had suspended its cash burn guidance due to uncertainty about domestic COVID-19 alert levels and had drawn down another NZ$105m ($75.22m) from a government debt facility. The airline said it was operating around 40% of its domestic network given tough travel restrictions in the country’s largest city, Auckland. “While the near-term situation is uncertain, I am extremely hopeful as we observe our population making great strides in terms of vaccination rates, which is critical to reconnecting New Zealanders with the world,” Air New Zealand Chairman Therese Walsh said at the carrier’s annual meeting. PM Jacinda Ardern said last week New Zealand will end its strict lockdown measures when 90% of its eligible population is fully vaccinated. About 72% of those eligible have been fully vaccinated so far, while nearly 87% have received a first dose. Air New Zealand last month said it was burning through around NZ$25m to NZ$35m of cash a month in the domestic market. The closure of a quarantine-free travel bubble with Australia had led to another NZ$20m to NZ$25m a month in cash burn, it said at the time. The airline has access to a NZ$1.5b debt facility from the government, which is also its majority shareholder.<br/>

Air NZ promises to make regions more accessible by doubling capacity and offering cheaper fares

Air New Zealand plans to help New Zealanders move to the regions by more than doubling regional capacity, improving connectivity and offering cheaper fares. At its annual shareholder meeting on Thursday Air New Zealand CE Greg Foran​ said changes that had begun before Covid-19 had accelerated. “There’s the opportunity to fly new routes – and to fly more often – by scheduling at different times of the day, adapting our service to the changing nature of work,” Foran said. “I believe Air New Zealand can help make the life-changing decision to move out of our largest cities a success for our customers and their families – while also growing our business.” Covid-19 has had a devastating impact on Air New Zealand with the company last year letting go of more than 4000 staff, reducing its pre-pandemic workforce by a third to about 8000 staff. Throughout the pandemic the airline has been relying heavily on Government support including wage subsidies, a generous cargo capacity scheme, deferred tax owed to Inland Revenue and loan facilities totalling $1.5b, of which $455m had been drawn down.<br/>