general

Demand for air travel continued its recovery in March this year, according to IATA, despite the war in Ukraine and China’s restrictive Covid-19 policies. Reporting its latest global traffic data on 4 May, the airline association noted that with travel restrictions softened or removed in many regions, “we are seeing the long-expected surge in pent-up demand finally being realised”. The impact of the war in Ukraine was “quite limited overall” when it came to travel demand in March, IATA adds, while the impact of the Omicron variant of Covid-19 was confined to Asian domestic markets – most notably China’s. IATA director general Willie Walsh cautions, however, that “we are also seeing long delays at many airports with insufficient resources to handle the growing numbers”. He calls on that issue to be urgently addressed, “to avoid frustrating consumer enthusiasm for air travel”. Total global demand measured in revenue passenger kilometres (RPKs) during March was down 41.3% compared with the same month in 2019, IATA says – an improvement from the 45.5% decline recorded in February. Within this year’s number, the domestic recovery continues to outpace that of international markets, IATA states, despite the recent Covid-related setbacks in the huge Chinese domestic market. Global domestic RPKs were 23.2% down versus pre-Covid levels in March, while international traffic was some 51.9% lower. In capacity terms, global available seat kilometres were down 35.5% versus 2019 levels in March, with international capacity down 45.2% and domestic ASKs some 18.4% lower.<br/>

The FAA said Wednesday that it will “immediately” increase staffing at a major air traffic control center in Florida to handle airlines’ surging numbers of flights to the Sunshine State after passengers this year faced thousands of flight cancellations and delays. “Because representatives said Florida operations will continue increasing past 2019 levels, the FAA will immediately increase the number of authorized staff at Jacksonville Center and evaluate other Florida facilities,” the agency said. The FAA held a two-day meeting with airlines as well as private aviation industry members this week to discuss solutions to air traffic congestion in Florida. Executives from JetBlue Airways, Frontier Airlines and Southwest Airlines have blamed air traffic control staffing shortfalls on recent delays to and from the state. The FAA said it is not capping the number of flights serving Florida. More frequent thunderstorms in Florida, coupled with high travel demand and thinner airline staffing levels than needed, also led to the delay or cancellation of thousands of flights last month alone. Airlines said Florida flights would continue to surpass pre-pandemic levels of 2019 this year, a sign of continued strong demand there. Other obstacles in the state have included an increasing number of space launches and military exercises. The agency said it will share more information with carriers about such events, which often mean airspace closures. The FAA also said it would help airlines come up with alternative altitudes, such as flying under weather systems, to keep traffic moving.<br/>

The FAA said Wednesday the rate of unruly air passenger incidents dropped to its lowest level since late 2020 after a US judge ended a government transportation mask mandate on April 18. The FAA said in the week ending April 24, there were 1.9 reported incidents per 10,000 flights, compared to 4.4 reported incidents per 10,000 flights in the prior week. The FAA said previously about 70% of reported incidents involved the enforcement of masking rules. The FAA said in the average rate in the last three months of 2020 was 2.45 incidents per 10,000 flights. Some airline officials had predicted the number of unruly passenger incidents would fall sharply when the mandate was lifted. Then-FAA Administrator Steve Dickson first issued a zero-tolerance mandate when unruly passenger incidents escalated around the time of the Jan. 6, 2021, attack on the US Capitol. Last month, the FAA said that zero-tolerance policy will become permanent even after the mask mandate was lifted. Under the policy, the FAA issues fines to passengers for unruly behavior instead of warning letters or counseling. Since January 2021, the FAA has proposed fines totaling about $7m for disruptive passengers. Two new fines issued in April were the highest yet, including an $81,950 fine for an American Airlines passenger on a July flight in which a passenger allegedly pushed a "flight attendant aside and tried to open the cabin door." The FAA said "after the passenger was restrained in flex cuffs, she spit at, headbutted, bit and tried to kick the crew and other passengers."<br/>

Transportation officials in Mexico said Wednesday they will effectively force airlines to use a new, more distant airport that was one of President Andrés Manuel López Obrador’s pet projects. López Obrador inaugurated the new Felipe Angeles airport, 43 km north of Mexico City, in March. But rail and road links to the new terminal have yet to be completed, and airlines have been loath to change flights from the still-operating inner city airport. Currently, only about a half-dozen flights per day use the new terminal. But Transportation and Infrastructure Secretary Rogelio Jimenez Pons told local media the government has decided to reduce the number of flights allowed to land at the old airport by 20%. The reduction is to start in July, and could force about 10 daily flights to the new terminal. The government had already said any new flights scheduled into Mexico City will have to use Felipe Angeles, but the new reduction applies to existing routes. Jimenez Pons said the old airport had to reduce traffic because it is overloaded and needs updates. He said airlines can choose to go the Felipe Angeles terminal or to an even more distant, largely unused airport in the neighboring city of Toulca, to the west.<br/>

Germany’s aviation industry views the European Union’s planned phase-out of Russian oil imports as manageable, though Berlin’s airport will be hurt more than others, Handelsblatt newspaper reported on Tuesday. “As things stand, in case of an embargo on Russian oil, we expect to be able to secure the supply of sufficient kerosene at German airports for the most part,” Matthias von Randow, CE of aviation association BDL, told Handelsblatt. He added the situation would be more difficult at the Berlin BER airport as it largely depends on supplies from the Schwedt refinery, which currently relies on Russian oil, and would need alternative supplies. “According to our information, the oil companies are working on this,” von Randow told the newspaper. The ADV airport association and Germany’s flag carrier Lufthansa also told the newspaper they were confident lost crude oil supplies from Russia could be replaced from other sources. However, the German fuels and energy trade association en2x, said the situation was “not trivial”, especially when considering logistical requirements for alternative transport and delivery routes, Handelsblatt reported. <br/>

Mumbai International Airport has raised $750m from a private bond sale to Apollo Global Management Inc. after delaying a planned note issue. The operator of India’s No. 2 airport, controlled by the country’s richest man, sold 7.25-year dollar notes to funds managed by Apollo in order to refinance existing debt and fund new capital expenditure, according to a stock exchange notice. The statement did not lay out the terms of the deal. A major bond market rout globally has prompted several Asian companies to revise their dent sale plans. Kalyan Jewellers India Ltd. announced last month it had halted a dollar bond sale last month, and India’s local currency debt market has also seen a string of shelved deals over recent months.<br/>

Singapore has seen a “significant improvement” in air travel, with passenger movements at Changi Airport more than doubling in the month following the country’s full opening of its borders. The city-state is also “well on track” to restore passenger volumes to half of pre-pandemic levels by the end of the year, says transport minister S Iswaran. The minister says that as of end-April, Changi Airport’s passenger movements were about 40% of pre-pandemic levels, a significant increase compared to the 18% recovery reported for March. Singapore in early April fully reopened borders, do away with arrival quotas, as well as testing requirements for all vaccinated travellers. Beyond immediate recovery, Iswaran says it was critical Singapore’s aviation hub status “thrives” in a post-pandemic world. Even though the Asia-Pacific region is expected to fully recover slower than other parts of the world, the minister says Singapore is “well positioned” to tap into growth demand. “The strength of our air hub has always been its connectivity, and we are committed to working closely with airline partners to grow this network. We must not only preserve our previous links or restore our previous links, but go beyond to expand the network, densify schedules, and forge new partnerships with airlines, ” Iswaran says. <br/>

Vietnam’s air cargo industry is pushing through the coronavirus pandemic and other headwinds in the global economy, with the number of flights picking up and a new homegrown freight carrier set to take to the skies. The Southeast Asian nation's 2022 air cargo traffic is expected to grow 17% from last year to more than 1.52m tons, according to local media, accelerating beyond average annual expansion of 15% over the last 30 years. That comes amid surging demand for domestic and overseas freight as Vietnam cements its position in global supply chains for everything from electronics to clothing, with its overall exports jumping nearly 20% to about $336b in 2021. Major cargo operators such as Germany's DHL Express and Japan's ANA Holdings have increasingly been targeting the country. "March was a record in terms of volume handled," said a senior executive at a major foreign logistics company with a facility in the capital, Hanoi. "Even with the COVID pandemic, you can really feel the momentum of Vietnam." Growing appetite has pushed up the cost of exporting by plane, however, with several industry insiders saying such air freight rates are still two to four times higher than pre-COVID levels. One of Vietnam's biggest conglomerates, IMEX Pan Pacific Group, is looking to land some fresh business through its IPP Air Cargo subsidiary, which it expects to begin operating by year-end as Vietnam's first company specialized in air freight.<br/>

Airbus on Wednesday confirmed a delay in development of its A321XLR jet to early 2024 in what industry sources described as a move by regulators to tighten rules to prevent fire risks. The latest upgrade to the best-selling A321 had been due to enter service in late 2023, but the delay stems from discussions with regulators about certification of a novel fuel tank needed to boost its range in a battle for sales with Boeing. The EASA is looking at significant rule changes that would force Airbus to redesign areas of the lower fuselage known as “underbelly fairings”, two of the sources said. These composite external structures would have to be lengthened and redesigned in heavier metal to help contain fire in the event of a belly-landing. A maiden test flight is still due by the end of this quarter, Airbus said in a quarterly results statement. “Initially planned for the end of 2023, the entry-into-service is now expected to take place in early 2024 in order to meet certification requirements,” it said. Reuters reported earlier on Wednesday that the jet’s introduction would be delayed to 2024. One of the industry sources cautioned that new structural work could add 6-9 months to the timetable depending on the scope of the final rule. A second source said this and other work could add up to a year. “The certification of the A321XLR is an ongoing project,” an EASA spokesperson said. “The complete set of conditions in relation (to) the installation of the rear-centre tanks is still under definition, and, when ready, will be published for comments.”<br/>

Airbus on Wednesday firmed up record plans for a 50% hike in key narrowbody jet output as it gambles on a steady travel rebound led by the United States, where the European exporter plans to deepen its industrial footprint. The world's largest planemaker reaffirmed existing plans to raise A320-family production to 65 jets a month in mid-2023 and confirmed tentative plans to go further by lifting monthly output to 75 in 2025, compared with around 50 a month now. Coming alongside a higher than expected first-quarter profit, the move highlights a powerful recovery for the industry's most-sold category of jet, which has propelled Airbus ahead of Boeing - still emerging from a crisis over the 737 MAX. The decision will lead to a second A320-family assembly line in Mobile, Alabama, increasing the European manufacturer's presence in arch-rival Boeing's backyard. So far, Airbus has nine current or planned lines in Europe, the US and China. US airlines have ordered hundreds of Airbus single-aisle jets, while also placing recent large orders for the MAX. CE Guillaume Faury, who spearheaded an Airbus restructuring involving thousands of job cuts when the pandemic hit two years ago, stressed significant work would remain in Europe, where Airbus will continue to build the main parts. "We can go faster in Mobile and will be gaining critical mass," he told reporters, adding "It will benefit the whole ecosystem of Airbus and benefit all our sites."<br/>

Widebody programme troubles pushed Wichita airframe manufacturer Spirit AeroSystems to a $52.8m loss in Q4 2022. But that loss came on Q1 revenue that surged 30% year on year, to $1.2b, due largely to a healthier narrowbody aircraft segment, Spirit reported on 4 May. In addtion, the negative earnings figure is still an improvement on the same period of 2021 when Spirit lost $172m. “Our recovery continues despite ongoing challenges from the Covid-19 pandemic, the Russia/Ukraine conflict, supply chain disruptions and inflation,” says Spirit CE Tom Gentile. “Our factories continue to meet deliveries to our customers, but we have seen downward revisions in schedule to some programmes.” Spirit attributes its improved Q1 revenue “to higher production deliveries on the Boeing 737, Airbus A220 and Airbus A320 programmes, as well as increased aftermarket revenue”. “On the 737 Max, our largest programme, we have recently increased production to 31 shipsets per month and currently expect to hold at that rate for the remainder of the year,” says Gentile. That aligns with Boeing’s goal of producing 31 737s monthly this year. But a bevy of costs and charges offset the improving narrowbody segment: Spirit took a $23.8m forward loss due to “further production rate decreases and costs of rework on the Boeing 787 programme, as well as increased costs of quality, and production rate decreases, on the Airbus A350 programme”, it says. Other charges included $26.2m due to “increased estimates for supply chain, raw material and other costs related to the Boeing 737”.<br/>