Global airline seat capacity rose for the first week so far this year, potentially ending a malaise that kept aviation fuel demand subdued in January as one country after another endured waves of coronavirus infections. The return of some previously closed domestic capacity in China has helped raise the figure, and globally, airlines offered almost 79m seats on planes for the week commencing Feb. 7, according to OAG Aviation. That’s about one quarter less than the equivalent week of 2019. Most of that deficit is due to international travel, which is only at about half normal strength globally, while domestic travel trails 2019 levels by about 11%. The worst hit regions for international travel remain northeast and southeast Asia, including places such as Hong Kong, while domestic capacity is most reduced in the southwest Pacific, southern Africa and western Europe.<br/>Jet fuel has been the weakest link in the oil market through the pandemic, with air travel always the first victim of any kind of lockdown or movement restriction. In its most recent monthly report, the International Energy Agency saw the omicron variant slowing the recovery in Europe’s aviation fuel consumption this quarter, but expected growth to gather pace in the second and return to close to the five-year average in the remainder of the year. European flight data is showing early signs of its deficit to 2019 starting to narrow. Arrival and departure numbers for 41 nations in the European network area sank from about 22,700 a couple of days before Christmas to as little as about 13,800 on Jan. 25 and were back up to about 18,000 on Sunday, according to government-funded Eurocontrol. When a rolling average of the flight numbers is compared against the same period of 2019, the Eurocontrol data translates into a tumbling decline through January and the start of a gentle recovery in February.<br/>
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Willie Walsh, DG of the IATA, has warned that fares will rise as airlines implement measures to hit sustainability targets in coming years. He also warned that fares may rise in the short term this year as oil prices hit multi-year highs in 2022. In a video interview with the Irish Tourist Industry Confederation that will be circulated among its members on Wednesday, Walsh heralded sustainable aviation fuel, a less environmentally damaging fuel mix that is blended with aviation’s traditional fuel of kerosene, as a “game changer”. “The problem with [such fuel] is the cost,” Walsh said. He said the greener fuel was “2½ times as expensive” as traditional aviation fuel. Considering the proportion of a typical airline’s costs go on fuel – about 25% – it is “clearly going to have an impact on price” as many airlines turned to sustainable fuel to help them hit carbon reduction targets, he said. Walsh called on governments to provide more incentives to airlines to “decarbonise” their operations. He suggested that State incentives to decarbonise road transport, which is “much easier” to achieve than reducing aviation emissions, should be redirected to the aviation industry.<br/>
The US Justice Department on Tuesday said it is "fully committed" to holding disruptive airline passengers who violate federal law accountable, but did not endorse Delta's request to add convicted passengers to a government no-fly list. Delta CE Ed Bastian, in a letter first reported on Friday by Reuters, asked US Attorney General Merrick Garland to place passengers convicted of on-board disruptions on a national "no-fly" list that would bar them from future travel on any commercial airline. Bastian said the action would "help prevent future incidents and serve as a strong symbol of the consequences of not complying with crew member instructions on commercial aircraft." Justice Department spokesman Joshua Stueve said on Tuesday the department "is continuing to prioritize the investigations and prosecutions of those who engage in criminal behavior that threatens the safety of passengers, flight crews, and flight attendants." The Justice Department "will be referring Delta's letter to appropriate departments," Stueve added.<br/>
The Justice Department is standing by a settlement it reached with Boeing for deceiving regulators who approved the 737 Max, despite personal pleas to Attorney General Merrick Garland from relatives of passengers who died in crashes of Max jets. In a filing Tuesday, the Justice Department asked a federal court in Texas to deny the families' request for a hearing into the US$2.5b settlement. The families argued that government lawyers violated a crime-victims law by not telling them that the government was negotiating a settlement with Boeing. They want a court to strike down the part of the deal that shields Boeing from criminal prosecution. The Justice Department told the court, however, that the family members are not crime victims. Department lawyers also said the settlement included compensation above what the law required. Last month, several relatives of passengers held a video meeting with Garland during which they pressed the attorney general to help them re-open the settlement, which was reached two weeks before the Trump administration left office. According to people who took part in the meeting, Garland expressed sympathy to the passengers' relatives but expressed no position on the case. In the settlement, Boeing blamed two former test pilots for misleading the FAA about a key flight-control system that played a role in two crashes in Indonesia and Ethiopia that killed 346 people. The Justice Department agreed not to prosecute Boeing for conspiracy to defraud the government.<br/>
Pilot union Air Line Pilots Association, International (ALPA) estimates the cost of upgrading radio altimeters on US commercial aircraft due to possible interference from fifth-generation (5G) cell phone networks will reach into six-figures per aircraft, and could take years to complete. In a scathing letter to the US House of Representatives subcommittee on aviation, ALPA president Joe De Pete on 8 February blasted the FCC - the government agency that regulates telecoms companies - for being negligent and ignoring aviation industry concerns regarding interference with avionics equipment ahead of the introduction of 5G service across the country last month. The “avoidable crisis” that resulted, he adds, will cost the airlines millions to fix. “While it is difficult to provide specific information, we are generally aware that avionics upgrades can be more expensive than many would ever imagine,” Pete writes. “Because multiple radar altimeters are installed aboard large air transport aircraft, the cost of the modified or new equipment, including the cost of labor to install the equipment, and the cost of aircraft time out of service, the overall cost could easily be $100,000-$150,000 per aircraft, depending on the aircraft type.”<br/>
Sun Country Airlines faces challenges hiring across its business amid the labor issues facing US companies. But even as it struggles to find enough pilots and maintenance technicians to grow as fast as it wants, executives see a silver lining in the higher airfares that are likely from a slower airline recovery. “I believe staffing challenges will result in downward pressure on capacity and therefore, be positive to fares,” Sun Country CEO Jude Bricker said during the carrier’s Q4 and full-year results call on Tuesday. Bricker has good reason to find a silver lining. The airline posted a 9% increase to $111.48 in its base fare per passenger during Q4 compared to the three months prior. And year-over-year, fares were up 28%. The upward trend is a matter of supply and demand. While the Omicron variant hit demand for air travel in January and February, airlines — Sun Country included — remain confident in throngs of vacationers returning to the skies for spring break in March and April, and then again this summer. That return is all well and good for airlines but it means fares will rise if the industry cannot resume — or exceed — its pre-pandemic schedules in lock step with demand. And after thousands of pilots retired during the pandemic, the timeline of the supply-side recovery is in question amid the growing staffing shortages.<br/>
Swissport, which provides ground services at 285 airports in 45 countries, said Tuesday it plans to hire 17,000 staff on an anticipated pick-up in air travel as pandemic restrictions ease. The increase in the number of staff providing passenger services such as check-in and gate assistance, as well as baggage-handling and aircraft services, will help its 850 client airlines scale up their operations and bring Swissport back to essentially its pre-pandemic number of employees. "With the anticipated easing of pandemic restrictions in many countries, Swissport expects travel demand to rebound in the coming months, at the latest by the start of the summer holidays," the company said. Swissport is considerably more optimistic than some industry bodies. The UN's civil aviation body, ICAO, said it expects air travel industry to remain considerably affected by the pandemic, with a drop in passengers of between 26 and 31% as international travel remains impacted by border restrictions.<br/>
Summer holiday bookings at TUI were approaching pre-COVID levels on pent-up demand, the world’s largest holiday company said on Tuesday, with a steady recovery in Britain since restrictions and testing rules were lifted. TUI said underlying operating loss in Q1 ending December was at E274m. Citi analysts expect bigger-than-expected losses in the current quarter before a potential recovery, sending TUI shares 4% lower. The group, which runs hotels, airlines, cruises and travel agencies, said 3.5m TUI customers had booked a trip for summer 2022, as of Jan. 30, around 72% of the levels seen in the same period in 2019. But new bookings matched pre-crisis levels, it said. Bigger holiday budgets and demand for packages as well as additional services such as room or hotel upgrades boosted its average selling price, which is up 22%, it said, despite having offered discounts and promotions to lure in customers. TUI CE Fritz Joussen said the lifting of COVID testing rules in Britain had a positive impact on booking behaviour and that Britain was the most important market for TUI currently due to higher margin bookings. Long-haul travel was also looking more attractive, he added. While inflation was an issue, Joussen said there was no impact on bookings because households had built up savings in the pandemic.<br/>
Israel extended on Tuesday a deadline that might have halted its airlines’ flights to the United Arab Emirates over an aviation security dispute, but warned of a potential crisis with the Gulf state unless the issue is resolved. Direct El Al, Israir and Arkia connections from Tel Aviv to Dubai were among the fruits of a landmark 2020 deal establishing ties between Israel and the UAE. Hundreds of thousands of Israelis have visited the UAE commercial hub since. But Israel’s Shin Bet security service has voiced concerns - which it did not publicly detail - about arrangements at Dubai International Airport and said the three national carriers would stop operating there if these went unresolved. The current arrangements had been due to expire on Tuesday. But a senior Israeli official said Transport Minister Merav Michaeli extended the deadline “by about a month” so the negotiations can continue. Dubai authorities did not respond to a request for comment. In tandem with the deadline extension, Israel increased pressure on the UAE to address its security concerns. Should the Israeli airlines eventually stop flying to Dubai, the senior Israeli official said, that would spell a de facto end to their UAE operations and prompt a recriprocal ban. “If El Al can’t fly to the Emirates, then Emirati companies can’t land here,” said the official, who spoke on condition of anonymity. Emirati state carrier flydubai operates direct Dubai-Tel Aviv flights. Dubai airline Emirates and UAE’s Etihad Airways have also been looking to launch flights to Israel.<br/>
Malaysia’s government advisory council proposed reopening of the nation’s international borders as early as March 1, without the need for compulsory quarantine. Travelers must take the Covid test before their departure and upon arrival in the country, National Recovery Council Chairman and former premier Muhyiddin Yassin said in a briefing video posted on Facebook. The government must set a definite timeline to open the borders to revive businesses that depend on tourism, Muhyiddin was quoted as saying in the local media last week. In the NRC meeting held in January, a committee comprising the Health Ministry was formed to map out the way forward, he said. Health Minister Khairy Jamaluddin on Feb. 3 said his ministry will recommend reopening borders only after the nation’s booster vaccination rate improves. The ministry is still discussing the threshold values that it is comfortable with in regard to vaccination for children and booster shots for adults, he said. Nearly 80% of the total population has been fully vaccinated, with more than 53% of adults having received booster shots. <br/>
Boeing said on Tuesday it delivered 32 aircraft in January, the lowest in three months, as its sidelined 787 Dreamliner program continued to weigh on the planemaker’s ability to capitalize on a recovery in air travel. The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report. Of the 27 MAX deliveries, seven were to Irish budget carrier Ryanair, while China Eastern Airlines took delivery of one 777 freighter. Boeing handed over 38 jets in December and 34 in November. The 737 MAX and the 787 Dreamliner are crucial to Boeing’s ability to recover from the pandemic and catch up with Airbus, having lost out on the delivery race to its European rival for the third consecutive year. After slashing production mainly due to the pandemic, plane makers are seeing more demand for medium-haul passenger jets and freighters, and are rushing to ramp up production. However, snags in Dreamliner production have proved costly for Boeing, with the company incurring $4.5b in charges in Q4 and paying penalties to customers for pushing back deliveries. Boeing booked 77 orders on a gross basis in January, including orders for 55 MAX airplanes and 22 freighters. Demand for the cargo planes has been a bright spot for the company, as it continues to dominate sales amid an e-commerce surge. Of the freighter orders, 14 were from Qatar Airways for the 777-8 model. The airline last month handed Boeing an order for 34 new 777X freighters and 25 737-10 MAX jets. <br/>
Airbus’s order backlog shrank by 16 aircraft in January, after the world’s biggest planemaker canceled 52 jets in a dispute with Qatar Airways. The European manufacturer reported 36 orders for the month, while subtracting 50 A321 single-aisles and two A350 widebodies after taking the unprecedented step of scrapping an agreement with one of its biggest customers. Airbus delivered 30 planes in January, an increase from the 21 handed over in January 2021. It also performed better in terms of orders, with no commitments in the same period a year earlier. The first month of the year is normally a slow one for Airbus after the typical December push to achieve sales targets and ship as many finished planes as possible. Yet the Toulouse-based company is starting the year in a deeper hole than usual due to an escalating dispute with Qatar over the surface quality of A350 wide-bodies. The Middle East carrier took the matter to court in December, and the planemaker responded by canceling the airline’s separate order for A321s. Airbus disclosed Tuesday that it took the additional step of pulling orders for two Qatar A350s. In a sign that the traditional market dynamic between Airbus and Boeing is returning after a difficult couple of years for the latter firm, the US company earlier reported 32 deliveries for January, including 27 of the resurgent 737 Max narrowbody. <br/>
Rolls-Royce Holdings plans to hire around 150 people across its network of partners in Singapore as airlines start to bring back planes that were grounded during the pandemic and international travel picks up. London-headquartered Rolls-Royce expects about 80% of the planned expanded head count for this year will be for maintenance, repair and operations (MRO) ventures, Bicky Bhangu, the company’s president of Southeast Asia, Pacific and South Korea, said Tuesday during a briefing. An additional 130 trainees will be hired across the network, he said. “We do see an anticipated growth in the MRO activities and we need to be future ready,” Bhangu said. “The near-term growth is definitely in the MRO side of things. That’s why we’re hiring 150 people this year.” Airlines must carry out inspections of their planes regularly to ensure they’re fit to fly. The recent moves by a growing number of countries, including Australia and Vietnam, to reopen borders to international travel after extended periods of having them closed has also increased the need for jet maintenance. In Singapore, Rolls-Royce manufactures fan blades for its Trent engines that power Airbus’s A350 passenger and cargo planes as well as Boeing’s 787s. The company also has a venture with SIA Engineering, the aircraft-maintenance arm of Singapore Airlines, for engine MRO operations.<br/>