general

BOC Aviation says lessors seeing 'horrendous' hikes in insurance costs

The likely huge insurance claims related to the cancellation of aircraft leases in Russia is already leading to "horrendous" hikes in the cost of renewing policies, the CE of major lessor BOC Aviation said on Thursday. Over 400 leased planes worth almost $10 billion remained in Russia after a March 28 deadline to cancel the contracts in line with Western sanctions over the war in Ukraine, leaving lessors facing heavy potential writedowns or a long insurance battle. In a trading update on Thursday, BOC said the net book value of the 17 owned aircraft it was in the process of recovering from Russia - net of all cash collateral held in respect of the aircraft - was $589 million or 2.5% of its total assets. All letters of credit held in respect of the aircraft had been successfully drawn, it added. "Because there are going to be huge claims on these insurances this year for confiscation or theft if the aircraft aren't given back, this will then have a knock on effect on insurance costs," Robert Martin told an aviation conference. "This is one of the unforeseen circumstances that is going to hit us later this year and I'm hearing some horrendous numbers for some of the near term renewals due at the end of March. We fortunately don't go until January next year." The world's top aircraft lessor AerCap said last week that it had submitted a $3.5b insurance claim for more than 100 jets stuck in Russia, the largest exposure in the sector.<br/>

Storms are causing major flight delays on the East Coast

Thunderstorms and low clouds over the East Coast are complicating air travel as many Americans are heading to airports during the busy spring break season. Thousands of flights are delayed, with some delays stretching up to two hours, according to FAA data. By 4:15 p.m. on Thursday, more than 4,500 flights had been delayed, including more than 700 on Southwest, more than 560 on Delta, more than 370 on United and more than 560 on American, according flight tracking data from FlightAware. Thunderstorms and clouds in the New York area caused air traffic controllers to halt departing flights bound for the New York's LaGuardia Airport, according to the FAA. Delays at John F. Kennedy International Airport stretched over an hour and a half and were approaching that mark Thursday afternoon at nearby Newark Liberty International Airport. Storms also affected air travel in Florida, according to the FAA. Delays ranged from 15 to 45 minutes in Orlando, Miami and Tampa on Thursday afternoon.<br/>On Wednesday, more than 5,700 flights within, into or out of the United States were delayed, according to FlightAware. Flight delays also hit travelers over the weekend during the busy spring break travel season. More than half of Saturday flights on Southwest Airlines were either canceled or delayed because of "an intermittent technology issue, as well as ongoing weather challenges," according to a tweet Saturday night from the airline.<br/>

US court reinstates Biden federal employee COVID vaccine mandate

A US appeals court panel on Thursday reinstated President Joe Biden's executive order mandating that federal civilian employees be vaccinated against COVID-19. By a 2-1 vote, the 5th Circuit Court of Appeals lifted an injunction issued by a US district judge in Texas in January that had blocked enforcement of the federal employee vaccine mandate. Biden said in September he would require about 3.5 million government workers to get vaccinated by Nov. 22, barring a religious or medical accommodation, or face discipline or firing. The White House and Justice Department did not immediately comment. The Biden administration argued the federal trial court had no power to hear the dispute. The administration told the appeals court that employees were required to raise their grievance through the Civil Service Reform Act (CSRA). The panel majority said the plaintiffs "seek to circumvent the CSRA's exclusive review scheme" and that the court declined the "invitation." Federal employee disputes generally occur before the Merit Systems Protection Board (MSPB) and then the Washington, DC-based Federal Circuit appeals court, the Justice Department said in its court filings. "The injunction seriously harms the public interest by impeding efforts to reduce disruptions from COVID-19 in federal workplaces," the government's lawyers said in their court filings. The White House has said more than 93% of federal employees have received at least one vaccination and 98% have been vaccinated or are seeking a religious or medical exemption.<br/>

US moves to choke off exports to 3 Russian airlines

The Biden administration moved Thursday to choke off US exports to three Russian airlines as part of what officials described as an unprecedented enforcement action. The Commerce Department said the move would prevent the airlines — Russian national flag carrier Aeroflot, Utair and Azur Air — from receiving items from the US, including parts to service their aircraft. “Those restrictions are significant because it’s obviously difficult to keep flying if you can’t service your planes,” Matthew Axelrod, an assistant Commerce secretary for export enforcement, told reporters. The effect, he said, is that the sanctioned airlines “and their fleet of aircraft will, over time, largely be unable to continue flying, either internationally or domestically, as they are now cut off from the international support and the US parts and related services they need to maintain and support their fleets.”nThe actions, known as temporary denial orders, do allow the Commerce Department to grant exceptions when the safety of a flight would be at risk. The orders extend for 180 days, though they can be renewed. The three airlines that were singled out had already violated US government restrictions, and the actions were taken to prevent expected violations in the future, officials said. The private sector has also taken its own action against Russian airlines in response to the war against Ukraine, with Delta Air Lines in February suspending its codesharing partnership with Russian national airline Aeroflot.<br/>

Here’s why people are still flipping out on airliners

Incidents involving unruly passengers in the United States are decreasing. But the good news may end there. On average, there were about 500 reports of unruly passengers per month in 2021, according to the US FAA. In the first three months of 2022, this number fell to about 350 reports per month, according to FAA statistics. That’s progress, especially considering that there are far more flights than in early 2021, when incident reports reached an all-time peak. However, it’s still a far cry from the number of in-flight outbursts logged before the pandemic, which from 2014 to 2019 happened about 10 times a month. Why unruliness skyrocketed: In 2021, nearly 3 out of 4 unruly passenger reports were related to mask compliance, according to the FAA, which monitors flights that depart from or arrive in the United States. For some, refusing to wear a mask became both a political statement and a marker of personal autonomy, said Sharona Hoffman, co-director of the Law-Medicine Center at Case Western Reserve University School of Law. Many of these people do not want to be told what to do, and flying is “an environment where they are told what to do — all the time — for hours.”<br/>

Shanghai COVID measures target international flights - sources

Chinese authorities are telling foreign airlines they must have more empty seats on international flights when they arrive at Shanghai’s Pudong airport, sources said on Thursday, as part of measures to prevent the importation of COVID-19 cases. Shanghai, China’s financial hub and its most populous urban centre, is grappling with the country’s largest COVID outbreak, locking down nearly all of its 26m residents and massively disrupting daily life and business. Two sources with knowledge of the matter told Reuters that flights arriving into Shanghai from abroad would have to have a load factor - an airline industry measure of seat occupancy - of just 40% from next Monday till the end of the month. That compares with a previous load factor cap of 75%, as air authorities look to limit international passenger arrivals and help prevent infections spreading within planes The move will likely add to headaches for many travelers stranded abroad as international capacity to and from China has remained at only a fraction of its pre-COVID level. The country has stuck to a zero-COVID policy of stamping out all cases regardless of the economic costs. “If they cannot get COVID under control (in Shanghai) and extend it beyond April, that’s going to be very challenging for everyone,” said an industry source. The country’s aviation regulator has also suspended a growing number of international flights in recent months under its “circuit breaker” system as Omicron cases surge overseas, prompting the US government to retaliate and cancel flights by Chinese carriers.<br/>

Costa Rica airport reopens after DHL plane skids off runway in emergency landing

Costa Rica's Juan Santamaria International Airport reopened on Thursday hours after a Boeing 757-200 cargo aircraft operated by DHL made an emergency landing and skidded off the runway, separating its tail, aviation authorities said. Airport operator Aeris said the airport, on the outskirts of capital San Jose, reopened at 3:30 p.m. local time, several hours earlier than expected following the 10 a.m. incident. Some 8,500 passengers and 57 commercial and cargo flights were affected by the closure, Aeris said. DHL, part of Deutsche Post, said the crew was unharmed and that one member was undergoing a medical review as a precaution. Images from Costa Rican newspaper La Nacion showed a yellow plane emblazoned with the DHL logo being doused with firefighting foam where it had landed on a grassy field next to a runway. The tail had detached and a wing had broken, the photos show. The aircraft was bound for Guatemala when it apparently had a failure in the hydraulic system, said Luis Miranda Munoz, deputy director of Costa Rica's civil aviation authority. The issue prompted the pilot to request an emergency landing shortly after takeoff, he said. A Boeing spokeswoman said it would defer questions to investigating authorities. DHL and airport authorities said they were working together to move the aircraft, although they said it was not affecting operations. "DHL's incident response team has been activated and an investigation will be conducted with the relevant authorities to determine what happened," DHL said. Aeris originally estimated the airport would remain closed until 6 p.m. local time, which would have impacted three cargo flights and 32 commercial flights to and from the United States, Central America, Mexico, Canada and Europe.<br/>