China has a strong record on aviation safety, with fatal commercial aircraft crashes unheard of in recent years and airlines operating millions of flying hours without incident. Yet on Monday afternoon local time, a Boeing 737-800 NG flown by China Eastern plunged into the hills of the Guangxi region in the country’s south. The plane was carrying 123 passengers and nine crew. China’s last fatal crash was in 2010, according to Aviation Safety Network, when a Henan Airlines Embraer SA jet carrying 96 people crashed in Yichun in the northeast, killing 44. The country’s worst aviation disaster was in 1994, when a China Northwest Airlines Tupolev Tu-154 crashed after taking off from Xi’an in Shaanxi province en route to Guangzhou. All 160 people on board died. China Eastern’s most recent major incident was in June 2013 when an Embraer jet skidded off a runway in Shanghai, according to Aviation Safety Network. The carrier’s last fatal crash was in 2004, however, when all 53 passengers and crew on a Bombardier aircraft died when it crashed after takeoff in Baotou, Inner Mongolia. <br/>
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The Boeing 737-800 NG, the model that crashed in China on Monday, is a workhorse of the skies. There are nearly 25,000 passenger planes in service worldwide, according to Cirium, an aviation data provider. Of those, about 4,200, or 17%, are Boeing 737-800 NGs. China is home to nearly 1,200 of those planes, followed by Europe, with nearly 1,000, and the United States, with nearly 800. American Airlines has 265 737-800 NGs in service, while Southwest has 205, United has 136 and Delta has 77, according to Cirium. Boeing delivered nearly 5,000 of the planes to customers between 1998 and 2020, according to Boeing data. China is the largest market for Boeing planes after the United States. Last year, Boeing forecast that the number of commercial planes in China would double by 2040, with Chinese airlines needing 8,700 new aircraft by then, valued at about $1.47t. The country is perhaps more crucial for Boeing’s leading rival, Airbus. Last year, Airbus delivered 142 commercial aircraft to China, its largest single-country market, representing a quarter of Airbus’s global commercial aircraft production. Airbus has a mammoth assembly line in the city of Tianjin, producing the A320 single-aisle planes and A330 wide-body passenger jets. It also has relationships with Chinese airline and helicopter operators, and many components in Airbus jets are made by Chinese companies. The value of the Airbus and Chinese cooperation reached around $500m in 2015.<br/>
The crash of a Boeing jet in China on Monday is the latest crisis for the American plane manufacturer, raising the prospect of renewed regulatory scrutiny and confronting the company with another catastrophe involving its planes. It could be weeks or even months before investigators identify what caused the Boeing 737-800 NG operated by China Eastern Airlines to plunge from the sky with more than 130 people aboard. But the outcome of the investigation could weigh heavily on Boeing, which recently overcame years of troubles involving a newer variant of the single-aisle 737, the Max, and has had long delays in producing and delivering the twin-aisle 787 Dreamliner. “I think it’s going to be very important to see what actually happened with this particular incident because there’s a credibility concern,” said Rob Spingarn, a managing director at Melius Research, a financial analysis firm. “I think the investment community will pause to some extent on Boeing until that information is out.” Thousands of 737-800 NG planes have safely traversed the globe in recent decades, and many industry analysts and experts were disinclined to conclude that Monday’s crash indicated any fundamental design flaw. But Boeing’s stock fell 3.6% nonetheless. Shares of China Eastern ended 6.5% lower in trading in Hong Kong. On Monday, Boeing said that it was in touch with China Eastern Airlines and with the NTSB, the agency leading U.S. efforts in assisting China’s investigation into the crash.<br/>
The deadly crash of a China Eastern 737-800 could set back Boeing's efforts to regain ground in the world's biggest aircraft market and deliver more than 140 737 MAX jets already constructed for Chinese customers. The 737-800 that crashed on Monday does not have the equipment that led to 737 MAX crashes more than three years ago, but that may not make a difference to Chinese passengers and a national regulator known for scrupulous safety requirements. China Eastern said the cause of the crash was under investigation. Such accidents typically involve multiple factors, and experts warned it was far too early to draw any conclusions on the potential causes, especially in light of the scarce information available. China was the first country to ground the 737 MAX after fatal crashes in Indonesia and Ethiopia more than three years ago, and it is the only major market where the MAX has not resumed commercial flights. A 737 MAX built for China Eastern subsidiary Shanghai Airlines took off from Seattle bound for Boeing's completion plant in Zhoushan last week, industry sources said, in a sign the model's return to service in China was close. The plane landed in Guam on March 15 as part of a multi-leg journey and has not moved in the week since, according to flight tracking website FlightRadar24. Boeing declined to comment. Colin Scarola, senior equity analyst at CFRA Research, said he would not be surprised if the crash further delays the return of the MAX in China, where the aviation regulator is known for being very thorough on safety issues. Chinese airlines do not need new MAX planes because demand is down following the country's biggest COVID-19 outbreaks in two years, industry sources said. But the US manufacturer has more than 140 MAX jets already built for Chinese customers waiting to be delivered once the jet returns to commercial service there, a person familiar with the matter said. More than 4,200 737-800s are in service globally, data from aviation firm Cirium shows.<br/>
The federal government says it has tightened rules for Russian aircraft after a commercial airliner was able to circumvent a ban on entering Canadian airspace late last month by falsely claiming to be a humanitarian flight. Aeroflot Flight 111 was allowed to traverse Canadian airspace en route from Miami to Moscow on Feb. 27 despite Ottawa having banned all Russian aircraft earlier that day in retaliation for Russia's invasion of Ukraine. Officials have previously said Aeroflot 111 was allowed into Canadian airspace because it had registered as a humanitarian flight, a designation that Transport Canada's head of civil aviation suggested on Monday was deliberately falsified. While the department is continuing to investigate, Nicholas Robinson told the House of Commons transport committee that officials believed Aeroflot used the humanitarian designation to "circumvent" Canada's flight ban. "Humanitarian flights are for emergency purposes," Robinson said. "And in this instance, we don't see that. This action by Aeroflot is one that we're continuing to investigate and have a great deal of disappointment in." The decision to let Aeroflot 111 into Canadian airspace because of its humanitarian designation appears to have been the result of confusion between the Liberal government and Nav Canada, which oversees air-traffic control across the country. Story has more.<br/>
Russia's largest airport, Moscow's Sheremetyevo, said on Monday it had furloughed a fifth of its staff and frozen further recruitment as passenger traffic plunged due to Western sanctions. The United States and Europe have closed their airspace to Russian airlines, prompting Moscow to retaliate by imposing the same measure. Sanctions have also cut off supplies of most aircraft and spare parts to Russia. "From March 16, some employees of Sheremetyevo International Airport were furloughed," it said, adding that they would be paid two-thirds of their wages. Sheremetyevo, one of the busiest airports in Europe before the COVID-19 pandemic hit in 2020, had cast itself as a transit hub linking east and west. The airport closed two of its five passenger terminals on March 15 and has taken one of its runways out of service, citing "enforced restrictions on international air transport". The company has also temporarily frozen all its investment projects. Privately-owned Ural Airlines, one of Russia's largest carriers, also said last week that it had been forced to furlough some of its staff.<br/>
Russian leisure carrier Azur Air has been granted clearance to conduct maintenance across its fleet if the aircraft are on the domestic register. Azur Air says it has received approval for maintenance on Boeing 777s and 737s from the federal air transport regulator Rosaviatsia. The company has technical facilities at Moscow Vnukovo. The airline had previously obtained permission, four years ago, to service Boeing 767s registered in Russia – the carrier operates several 767-300ERs, a number of which carry domestic registrations. It was also given authorisation to service 757-200s in 2020. Extension of its FAP-285 certificate will enable Azur Air to maintain the airworthiness of its entire fleet, says the carrier, and support third parties as an independent maintenance organisation. The airline’s fleet includes 777-300ERs, 737-800s and 737-900ERs although – as with many Russian operators – most aircraft are leased and registered in Bermuda, which has the responsibility for their maintenance oversight. Aeroflot Group’s maintenance division A-Technics has also secured an extended FAP-285 certificate from Rosaviatsia, following an audit, to conduct servicing on several Airbus and Boeing types on the domestic registry. A-Technics says that it will be able to work on Airbus A350 and A320-family jets, as well as the Boeing 777, 747-400 and 737. “[We have] everything necessary – highly-qualified personnel, rich experience, in-depth knowledge of aviation technology and the necessary equipment,” insists A-Technics chief Mikhail Korobovich. Siberian operator Yakutia has similarly been approved for Boeing 737 maintenance on domestically-registered jets, and it plans to obtain further clearance for Bombardier turboprops.<br/>
Three days after the invasion of Ukraine, a Boeing 737 — operated by Russia’s Pobeda but owned by Dublin-based Avolon — was impounded after landing in Istanbul. The plane’s seizure came as European sanctions on Russia’s aviation sector prompted a global scramble among overseas leasing groups to recover more than 500 aircraft, worth an estimated $10bn, that were stuck in the country. But it was among the last to be repossessed, after the Kremlin moved to block such efforts last week by signing a new law allowing foreign jets to be re-registered in Russia. “The Russian government is playing a game of what I call ‘Grand Theft Aero’,” said Paul Jebely, global head of asset finance at law firm Withers. Russia’s actions could force the world’s largest leasing companies to write off billions of dollars worth of assets, raising the prospect of lengthy battles with insurers over who should foot the bill. Rating agencies have warned that the lost income from the leases has increased risks to bondholders in deals backed by the aircraft. Moscow has flouted decades-old international treaties that provided security to lessors operating in more risky jurisdictions and helped underpin a boom in international travel. “This is the worst-case scenario, where a country unilaterally takes control of an aircraft’s register,” said Phil Seymour, president of aviation consultancy IBA. “It has never really been contemplated. There will be repercussions in terms of aircraft lease agreements.” Some industry executives have insisted that it was too early to write off the chances of these planes flying internationally again. Others, however, believe the chances are slim. “From a planning perspective, we should assume that those aeroplanes are gone for all intents and purposes,” one executive said. Story has more.<br/>
Hong Kong will lift bans on flights from nine countries in April and cut the quarantine period for arriving passengers, following an interim review on the city’s onerous pandemic management measures. At a government press conference on 21 March, Hong Kong chief executive Carrie Lam says flight bans will be eased for Australia, Canada, France, India, Nepal, Pakistan, the Philippines, Britain and the United States. Lam says her government is of the view that the flight bans — also known as “circuit breaker” — are “no longer necessary…because in these countries, they are no worse than the situation in Hong Kong”. She notes that travellers from the nine countries who do enter Hong Kong “do not show any symptoms”. Hong Kong first banned incoming flights from the nine countries on 8 January, amid the global spread of the more infectious Omicron variant of the coronavirus. As for quarantine, Lam says the isolation period will be halved to seven days for incoming travellers, provided they are fully-vaccinated, test negative before departure, and on the sixth and seventh day of quarantine. Hong Kong’s quarantine requirements have come under fire for being among the strictest in the world, and are widely seen as a key reason for travellers avoiding the city. The move is likely to be welcome news for the city’s home carrier Cathay Pacific, which has warned that its operations are constrained under strict quarantine rules. <br/>
Mexican President Andres Manuel Lopez Obrador on Monday opened a new Mexico City airport, over three years after he rattled investors by scrapping a $13b hub partly built by the previous government that he cast as corrupt. The military air base north of the capital, which Lopez Obrador has turned into Felipe Angeles International Airport, started with just a handful of flights. It begins operations without a train connection, which is due to be ready next year. Hundreds of soldiers milled around the airport, whose new buildings gleamed in bright sunshine, even as workers in orange and yellow vests continued work on parts of the site. The airport is the first of the major infrastructure projects planned by Lopez Obrador to be launched, and is aimed at easing congestion at the current Mexico City hub that lies approximately 45 km to the south. The president held his regular morning news conference at the airport ahead of the opening ceremony, and quickly rounded on critics who had questioned whether it would be completed. "This work was done in spite resistance from vested interests and people who wished us ill," said Lopez Obrador, who is holding a recall referendum next month on his presidency in a bid to strengthen his democratic mandate. The airport was built despite criticism from business groups that had backed the partly-built hub canceled by Lopez Obrador just a few weeks before he took office.<br/>
Security staff at several German airports will stage another one-day strike on Tuesday after four rounds of talks to increase wages failed to result in an agreement, trade union Verdi said. Airlines, which are reeling from soaring fuel prices and airspace closures due to the war in Ukraine, had to cancel hundreds of flights to and from German airports amid security worker strikes last Monday and Tuesday. Verdi called the strike for this Tuesday at Frankfurt, Berlin, Bremen, Hamburg, Hanover, Stuttgart, Duesseldorf and Cologne/Bonn airports. Frankfurt is Germany's busiest airport, handling around 2.1m passengers last month. "We did make progress in aligning regional wages," Verdi negotiator Wolfgang Pieper said Monday. "But when it came to wage increases, the employers' offers fell far short of what the employees demanded." The union is demanding that employers raise the wages of the around 25,000 airport security employees in Germany by at least 1 euro an hour for the next 12 months and that staff in different parts of the country earn the same. BDLS, the association of aviation safety companies, has said that all of Verdi's demands combined amounted to pay increases of up to 40% and were "utopian." A next round of wage talks has been scheduled for Thursday, Verdi said.<br/>
The Philippines on Monday eased restrictions to allow foreign ownership of airline, telecommunications and shipping operators, as it seeks to boost jobs and spur activity in the virus-hit economy. The archipelago nation has long struggled to attract foreign money, as red-tape, corruption and political uncertainty scared off investors who instead pumped billions of dollars into neighbouring nations. The amendments to the 85-year-old Public Service Act are the latest effort to woo foreign investment and increase competition in sectors long dominated by a few local players. "I believe that with this law, the easing of foreign equity restrictions will attract more global investors, modernise several sectors of public service and improve the delivery of essential services," outgoing President Rodrigo Duterte said as he signed off on the changes. Trade Secretary Ramon Lopez said foreign equity restrictions would be "eased out" in several sectors, including telecommunications, shipping, airlines, railway and subways. <br/>
Elon Musk’s SpaceX believes an aviation-specific antenna may be revolutionary for connecting Starlink, its global high-speed internet service, with airplanes. “Connectivity on airplanes is something that we believe is ripe for an overhaul,” SpaceX vice president Jonathan Hofeller said Monday at the Satellite 2022 conference here. In-flight connectivity is a market that SpaceX has talked about disrupting since the company began offering Starlink service. Hofeller said that air travel passengers’ expectations for internet service “has changed faster than the technology has changed,” creating an opportunity for Starlink. “Our approach to connectivity in the sky is much like it is at home: You walk into your house and the internet just works. It’s simple. It’s high speed,” Hofeller said. Airlines work with satellite broadband providers for inflight Wi-Fi, with Viasat and Intelsat — the latter of which purchased Gogo’s commercial aviation business — two such companies that add connectivity on flights by airlines including Delta, JetBlue, American Airlines and United. But, while existing services use satellites in distant orbits, Starlink satellites orbit closer to the Earth and could boost the speeds that passengers see in-flight. Additionally, the global mesh of Starlink satellites would mean aircraft could connect to the internet without disruption. “We believe in a future where connectivity is abundant, you’re not scrapping for kilobits per second here. It’s so much that people get on the plane and they stream just like they do in their home, so we’re designing a service that every single passenger on that plan can stream simultaneously if need be,” Hofeller said. SpaceX is testing aviation-specific Starlink terminals, also known as satellite antennas, on aircraft.<br/>