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US airlines and Amazon join push to reduce aircraft emissions

Major US airlines and Amazon.com's aviation unit are joining an effort to speed development and use of sustainable aviation fuels (SAF) to decrease emissions in air transport. The Sustainable Aviation Buyers Alliance (SABA) said Amazon Air, Alaska Airlines, JetBlue, and United Airlines are joining the effort, which includes major corporate airline customers, to help drive greater SAF production, price cuts and technological advancements. The Environmental Defense Fund and the Rocky Mountain Institute launched the Sustainable Aviation Buyers Alliance in April with companies including Boeing, Bank of America, JPMorgan Chase, Microsoft, and Netflix to support increased market demand for SAFs. At the climate talks in Glasgow, RMI managing director Bryan Fisher said aviation emissions would be equivalent to the sixth largest country's total emissions. Fisher said SAF is "almost largely 100%" of the solution through 2030 "and still a very large part" through 2050 but SAF is just 0.1% of jet fuel consumed today. US Transportation Secretary Pete Buttigieg will represent the United States as a coalition of countries led by Britain are expected to announce the "International Aviation Climate Ambition Declaration," Reuters reported, citing sources. Buttigieg on Wednesday praised SABA and cited "the importance of partnerships between the public and private sector" in cutting aviation emissions.<br/>

Airlines chief says high oil prices to delay debt reduction

High oil prices could delay efforts by airlines to restore balance sheets weakened by the pandemic, but the lifeline of bookings made well in advance is picking up as markets reopen. Crude prices have risen 66% so far this year as economies exit lockdown and supplies remain tight. "I think it's going to be tougher, but I don't see that airlines can avoid that. They will have to strengthen their balance sheets," said Willie Walsh, DG of the IATA. "For some airlines it will take time, and a higher oil price probably does slow down the recovery period," he said. Airlines are grappling with $651b in debt, up $220b since the COVID-19 crisis began, according to IATA, which represents almost 300 carriers. Labour shortages are also a concern and represent a real risk for the first time in decades, Walsh added. Gaps range from pilots to ramp workers, he said, adding one airline had been forced to increase hourly pay by more than 50%. On the positive side, forward bookings are increasing and stretch up to a year ahead as travel restrictions are lifted. That marks a respite for airlines recently forced to rely on last-minute bookings as travellers waited for new COVID rules. "It hasn't returned to the same pattern, but people are now confident in saying 'I am going to start booking for next summer and beyond'," Walsh said. Bookings snapped back on the crucial transatlantic market when the United States announced the lifting of COVID-related travel restrictions, which led to a reopening from Monday. "It is very clear that when restrictions are removed or relaxed, there is an immediate response - and it is immediate: the transatlantic spike was almost to the second," Walsh said.<br/>

Business travel seen in ‘structural’ decline in post-Covid era

As the airline industry struggles to recover from a deep, pandemic-induced slump, another crisis is looming in the crucial business travel market, according to a new report. Companies are expected to keep a tight rein on trips in the coming years, leading to a “structural” decline of between 15% and 25% through 2025 from before the Covid-19 pandemic, consultancy AlixPartners said Wednesday. The loss could trigger a broad strategy overhaul for full-service carriers because corporat demand makes up as much as three quarters of their profits, and nearly a third of sales. “Business travel will be hit harder than leisure,” said Pascal Fabre, a managing partner at the firm in Paris. “There will be a long-lasting effect from hybrid working and reduced corporate spending on travel.” European airlines like Air France-KLM and IAG SA’s British Airways benefited from a rebound in regional travel this summer and are adding more capacity after the US lifted border restrictions this week. Yet a full recovery to pre-crisis levels of overall flying worldwide isn’t expected until around mid-decade, AlixPartners said. Airlines, financially weakened and debt-laden coming out of the Covid crisis, are holding out hope. Shai Weiss, CEO of Virgin Atlantic, said this week that he expects a full rebound in business travel by 2023. But IAG chief Luis Gallego said it is likely to remain as much as 15% lower than 2019 levels by then. In the meantime, the sector is pushing ahead with more cost cutting, aggressive fleet deals and simplification, and the sale of non-core assets. Consolidation could also be in the offing, as stronger carriers wear down weaker ones with lower pricing. <br/>

IATA says airlines likely to beat interim sustainable-fuel goal

Airlines will likely beat an interim industry goal of around 5% sustainable aviation fuel consumption by 2030 so long as energy companies boost production, the head of a global airline industry association of airlines said on Wednesday. The IATA last month released its strategy to achieve net-zero carbon emissions by 2050, including a progressive increase in sustainable aviation fuel use. Under the plan, airlines have committed to significantly increasing the use of bio-based fuel from 2% of fuel consumption in 2025 to 65% in 2050, including a stepping stone of 5% in 2030. Last week, British Prime Minister Boris Johnson criticised sustainable aviation fuel targets as "pathetic". But IATA DG Willie Walsh said he expected airlines would beat their interim 2030 target of 5.2%, citing some airlines who have set out higher goals. "Probably it stems from his view that we should be able to do better, we should be more ambitious, and generally I think we will," Walsh said in reference to Johnson's comments. His remarks coincided with a transport debate at the United Nations' climate conference in Glasgow. The aviation industry, which accounts for some 3% of global carbon emissions, is considered one of the toughest sectors to tackle due to a lack of alternative technologies to jet-fuelled engines. It plans to bridge the gap with bio-based fuels. Walsh said there was "no question" airlines would be using sustainable fuel today if it were as available as conventional jet fuel, and urged oil companies to increase production. "There's no point mandating airlines to use it when it isn't there for us to use."<br/>

Airlines rush toward sustainable fuel but supplies are limited

Airlines rolled out a slew of sustainable fuel initiatives in the run-up to COP26, aiming to prove they’re serious about the fight against global warming. Sustainable aviation fuel (SAF), a substitute for the fossil-based kerosene powering today’s jet turbines, is derived from a variety of ingredients, from waste oils and fats to sugar crops and some trees and grasses. British Airways operated a “carbon neutral” flight to Glasgow, while EasyJet will use a SAF blend on 42 flights out of London Gatwick airport. United Airlinescommitted to buying 1.5b gallons of SAF made from forest and crop waste. The sudden embrace of kerosene alternatives makes sense for an airline industry desperate to avoid another shock after the decimation caused by the Covid-19 pandemic. If scaled quickly, SAF could help airlines fend off calls for emissions-related restrictions on flying, and clear the way for a return to growth. Some industry participants are concerned that the publicity is outpacing palpable progress. “It feels a little frothy right now,” said Gene Gebolys, CEO of World Energy, one of two companies supplying commercial quantities of SAF in the US. “It can’t be just a press release battle. There’s got to be authenticity here.” A crucial selling point of SAF is that it offers a way to make immediate progress toward cutting CO₂ emissions, given more impactful changes like hydrogen- and electric-powered planes are still on the drawing board. SAF is made without extracting more fossil fuel, and can be blended for use in existing aircraft. One of the main challenges is cost. SAF is typically three to four times more expensive than kerosene, so airlines aren’t buying it in bulk. As a result, very little is being produced. If Delta filled all its planes for one day, the carrier would soak up a year’s worth of US SAF supply, said CEO Ed Bastian. Energy producers “don’t know if they have a client, and the airlines can’t afford to pay that much higher level of cost,” Bastian said. “That’s why we’re working with our people in Washington” on getting tax credits for SAF fuel blends.<br/>

More than 200,000 people flew to the US on Monday under new rules

Travelers from more than 30 countries previously banned by coronavirus restrictions poured into US airports on Monday, the first day on which visitors coming from those countries, but travel from abroad still lagged far behind prepandemic levels. This was the first time that airlines have required proof of vaccination for travelers boarding flights to the United States. Visitors also were required to show proof of a negative coronavirus test. As photos of emotional reunions spread across social media on Monday, 206,990 international travelers arrived at US airports, according to Customs and Border Protection. This is nearly 40,000 more travelers from abroad than the United States received on a typical day in 2020. Visitors from England, Ireland, France, Brazil, China, India, Iran and 26 other previously restricted countries were welcomed in the change, which signaled a shift toward normality, an enormously significant development that buoyed hopes for hotels, restaurants, long-divided families and companies with overseas employees. The overall number of incoming travelers, including US citizens but not counting crew members, falls far short of a typical day in 2019, when 371,912 people, including air passengers and crew, flew into the United States. (Estimates for a typical day in 2021 are not yet available.) Numerous airlines and tourism analysts have expressed optimism that the real bump in travel to the United States from abroad will occur over the holidays.<br/>

Philippines flight school readies recruits as global travel sees brighter skies

With travel demand expected to grow as countries rush to reopen to international visitors, an aviation school in the Philippines is stepping up its training to try to head off problems from a global pilot shortage. Travel restrictions imposed to fight COVID-19 have caused major disruption to the aviation sector, with aircraft grounded worldwide and many pilots no longer flying, having been laid off, furloughed or forced to find employment elsewhere. "The important thing for us to do is to get ourselves prepared and be ahead of the herd," said Lev Albarece, head of training at Alpha Aviation Group, a pilot school with hubs in the Philippines, Britain and the Middle East. "We have to be ahead of the line and be ready for the next hiring surge." Expanded vaccinations and an easing of restrictions in many countries has seen global demand for flights grow and airlines racing to restart routes after a lengthy hiatus. Flights in the Philippines fell dramatically at the start of the pandemic, with no signs the country plans to reopen to foreign visitors or business travellers anytime soon. Only 100 students have enrolled this year at Alpha's local training facility, a third of pre-pandemic levels, with costly fees and job uncertainty deterring potential pilots. But at Alpha's school in Pampanga province, northwest of Manila, its full-motion Airbus flight simulators have been running all day to get trainees ready for real-world scenarios.<br/>

FAA questions some Boeing appointees expertise for certification tasks

The FAA told Boeing that some of its appointees overseeing aircraft certification tasks lack expertise and directed the largest US planemaker to quickly address the issue. In a Nov. 2 letter, the FAA told Boeing an oversight review conducted this summer found some appointees did not have required expertise and found some of those Boeing employees performing certification tasks for the agency "are not meeting FAA expectations." The air regulator added that of 12 recent appointees who handle safety matters on the agency’s behalf, some "38% struggled to demonstrate an understanding of FAA certification processes." An FAA spokesman said the letter speaks for itself. Under a new law adopted in the wake of two fatal Boeing 737 MAX crashes in five months that killed 346 people, the FAA will start exercising new oversight over the selection of candidates who perform safety work on the FAA's behalf. Starting Jan. 1, Boeing will nominate candidates for but the FAA must approve or reject them. The FAA will also review existing members. Boeing said Wednesday it is "committed to ensuring the highest levels of safety and quality in all that we do, and that includes the important work of Boeing employees who are designated as authorized representatives. We respect the FAA’s oversight role and look forward to strengthening" the selection process and overall program. The letter also cited concerns about appointment evaluation panels have "not demonstrated an independent assessment of a candidate’s experience and technical capability." The FAA directed Boeing to investigate and submit "corrective action" within 30 days.<br/>

Hours-long waits at Heathrow return with new border gate outage

Passengers arriving at London Heathrow airport on Wednesday were caught in queues that stretched for as long as two hours after software issues caused automated entry gates to fail for the third time in less than two months. A technical issue was affecting Border Force e-gates at a number of ports, according to a spokeswoman for the Home Office. “We are working to resolve the issue as soon as possible and apologise to all passengers for the inconvenience caused,” she said. The border chaos threatens to mar a comeback for international travel after the US lifted entry restrictions on visiting Brits and Europeans. Airlines have reported a surge in bookings and planes on transatlantic journeys are filling up. In Terminal 5 on Wednesday, queues snaked around the arrivals halls and moved slowly as border officials were forced to check documents manually. This is at least the third such border software outage, with previous failures in September and October. “The e-gate technology is quite fragile,” said Lucy Moreton, a spokeswoman for the Immigration Services Union. “You’ll find e-gates out at one location or another almost every day.”<br/>

Auckland Airport's outgoing CEO Adrian Littlewood declares New Zealand needs to open up now

In his last week in Auckland Airport's top job, Adrian Littlewood told The AM Show there is no longer any logic in forcing fully vaccinated New Zealanders with pre-departure testing into quarantine facilities as the science doesn't support it. He called on the Government to decide on the matter now, giving the aviation industry time to prepare amid the recovery from the COVID-19 pandemic. "The Government has stated that vaccinations are our ticket to an unrestricted summer holiday, yet fully vaccinated and tested Kiwis remain stuck offshore, kept apart from family and friends over Christmas," Littlewood said. "Some of our most prominent scientific experts have come out and said this week that the risk they present is low and better use could be made of our scarce MIQ facilities. And we've also seen Air New Zealand announce new domestic safety protections this week, meaning only fully vaccinated or COVID-19-negative people will be able to fly from mid-December. "The time has come for the grief and inequity caused by these restrictions to end, allowing Kiwis to return, reunite with their families and isolate at home if they are fully vaccinated with pre-departure testing. The Government needs to make this a priority now."<br/>

Boeing and Airbus are launching cargo planes that may face crowded skies

In recent years, when the world’s air carriers, aerospace manufacturers, and leasing companies gathered for the Dubai Airshow, the seemingly endless appetite for new planes shown by homegrown carrier Emirates Airlines and its Gulf competitors has gotten much of the attention. When this year’s show opens on Nov. 14, the spotlight will be on air freighters. Because of the dramatic growth of e-commerce, the pickup in demand for both consumer and industrial goods as the pandemic eases, and supply chain turmoil that’s shown the downside of total dependence on ocean shipping, cargo carriers and logistics companies are turning to air freighters. These behemoths can quickly transport huge amounts of freight while bypassing port tieups, shortages of ocean containers or rail cars, and the current dearth of long-haul truck drivers. And aircraft owners are eager to add more of them to their fleets because the prospects for freight growth are encouraging. Plane lessor Avolon Holdings Ltd., for example, forecasts air cargo revenue will reach $150b this year, with traffic doubling over the next 20 years. In Dubai, Airbus will be chasing customers for a cargo version of its A350 widebody passenger plane. Boeing is also preparing to unveil the initial deal for an all-cargo version of its 777X widebody. But the announcement could come outside of the airshow if an expected launch customer, Qatar Airways, skips the event because of geopolitical tensions. Both planemakers have been schmoozing the same small circle of potential buyers, a group that includes FedEx, Lufthansa, Singapore Airlines, and DHL, according to people familiar with the efforts who asked not to be identified as the talks are confidential.<br/>