general

Flying will become more expensive because of soaring oil prices, the former head of British Airways has warned. Willie Walsh, the former CE of the airline, also said passengers are set to face problems at UK airports as they try to go away this summer. Britain is currently in the grip of a cost of living crisis, with soaring inflation and petrol pump prices already affecting the budgets of millions of people. A report published on Friday revealed that families are now paying an extra GBP500 a year to fill up their cars with petrol. Experts warned on the same day that energy bills could soar to an average of GBP3,300 per year within months. Walsh, current DG of the IATA, said: “I think that it is right that these cancellations are made early because that will allow airlines and their customers to adapt to the revised schedules. I actually expect people to be able to get away. I think there will be some disruption but I don’t think it will be on the scale we have seen to date. I believe that there are solutions that have been put in place.” He also said: “Flights are getting more expensive because of the high price of oil and it has been clear to everybody that will be reflected in higher ticket prices. “Flying will be more expensive for consumers, without doubt. Oil is the single biggest element of an airlines’ cost base. It is inevitable that ultimately the high oil prices will be passed through to consumers.”<br/>

Global passenger data for May 2022 shows the recovery in air travel accelerated heading into the busy northern hemisphere summer travel season, the IATA reported at the weekend. IATA’s performance update for Mays showed total traffic in May 2022 (measured in revenue passenger kilometres or RPKs) rose 83.1% compared to May 2021, primarily driven by the strong recovery in international traffic. International traffic rose 325.8% versus May 2021. The easing of travel restrictions in most parts of Asia is accelerating the recovery of international travel. May 2022 international RPKs reached 64.1% of May 2019 levels. Overall global traffic is now at 68.7% of pre-crisis levels achieved in 2019.<br/>

US Transportation Secretary Pete Buttigieg said Sunday the government has completed 10 investigations into airlines over passenger refund-related issues. “We’ll collaborate with airlines when they’re ready to take steps that are positive and proactive, whether that’s improvements in pay that are helping with hiring or flexibility in customer service,” Buttigieg said Sunday. “We’re also going to enforce passenger and consumer rights.” In September 2021, the US DoT said it had 18 pending investigations against airlines over complaints that they failed to provide timely refunds during the COVID-19 pandemic. A department official told Reuters on Sunday that 10 investigations have been “concluded and will be moving to enforcement actions in coming weeks.” US Transportation Secretary Pete Buttigieg said on Sunday the government has completed 10 investigations into airlines over passenger refund-related issues. “We’ll collaborate with airlines when they’re ready to take steps that are positive and proactive, whether that’s improvements in pay that are helping with hiring or flexibility in customer service,” Buttigieg said Sunday. “We’re also going to enforce passenger and consumer rights.” In September 2021, the US DOT said it had 18 pending investigations against airlines over complaints that they failed to provide timely refunds during the COVID-19 pandemic. A department official told Reuters on Sunday that 10 investigations have been “concluded and will be moving to enforcement actions in coming weeks.”<br/>

The US DOT Friday warned airlines it may issue regulations prohibiting them from charging extra fees to allow young children to sit next to accompanying family members. The agency cited a 2016 law that required it to review U.S. airline family seating policies. The agency issued a notice urging airlines to ensure children age 13 or younger are seated next to an accompanying adult with no additional charge to the maximum extent practicable, and said it could take regulatory action later this year after it reviews airline policies. The Transportation Department said it has received few complaints about the issue but said “even one incident is one too many.” It added that airlines should implement policies enabling workers “to make immediate adjustments as needed to ensure young children are able to be seated adjacent to accompanying adults” but are not required to provide seats that would result in an upgrade. The agency said airlines using seat blocking should monitor its ability to ensure adequate numbers of seats are blocked to meet demand for adjacent seats for passengers traveling with young children. Last month, the department noted that US consumers lodged more than quadruple the number of complaints against US airlines in April compared with pre-pandemic levels. <br/>

Staffing shortages, bad weather, high fuel prices and runaway inflation — airlines face plenty of challenges as they seek to benefit from a strong travel rebound. But there’s at least one other complication in the mix: negotiating new pilot contracts. Each of the nation’s largest carriers is in the process of trying to strike a deal with pilots. In some cases, airlines appear ready to pay substantially higher wages, with two major airlines recently offering to raise pay more than 14% in the next year and a half. But money alone may not be enough. Pilot unions are also demanding changes that they say would improve operations and their members’ quality of life, particularly as flight disruptions throughout the recovery have left pilots feeling frustrated and overworked. They may be well positioned to get what they want, industry analysts say. A brewing pilot shortage was worsened during the pandemic when airlines encouraged thousands of pilots and other workers to accept buyouts and early-retirement offers. Now, with the industry hiring pilots at record numbers but struggling to attract, train and retain them, their unions are pushing hard for broader changes. “You absolutely cannot address quality of life with money,” said Casey Murray, a pilot and the president of the Southwest Airlines Pilots Association. “You’re never going to pay someone enough for a lost piano recital with their daughter or a lost baseball game.” Airlines in the US have already hired more than 5,500 pilots this year, more than in any full year since at least 1990, according to Future & Active Pilot Advisors, a career consulting firm for pilots. The four largest carriers — American, Delta, Southwest and United — accounted for most of that hiring and collectively employ about 50,000 pilots. <br/>

Rogers Telecommunications said its network was beginning to recover late on Friday after a 19-hourservice outage at one of Canada's biggest telecom operators shut banking, transport and government access for millions, drawing outrage from customers and adding to criticism over its industry dominance. Nearly every facet of life has been disrupted, with the outage affecting internet access, cell phone and landline phone connections. Some callers could not reach emergency services via 911 calls, police across Canada said. Canadians crowded into cafes and public libraries that still had internet access and hovered outside hotels to catch a signal. Canada's border services agency said the outage affected its mobile app for incoming travelers. Retailers' cashless pay systems went down; banks reported issues with ATM services. Rogers said on Twitter that "our wireless services are starting to recover" and workers are trying to get people back online as quickly as possible. The disruption also made transport and flight bookings more difficult at the height of the summer travel season. So far, Transport Canada has not received reports of direct safety or security impacts to any flights, marine or rail services as part of this outage, according to spokesperson Sau Liu.<br/>

The Turkish civil aviation authority is tightening conditions covering Turkish pilots who resign and move abroad to work for foreign airlines as the aviation industry races to find extra personnel amid a booming tourism season. The sector across Europe is dealing with especially long queues at airports this summer partly because of a lack of staff to handle the rebound in demand after COVID-19 lockdowns. The Turkish authority said a letter of consent from previous employer will be necessary for pilots who want to work for foreign airlines. If a pilot resigns without a consent letter, then their application for verification will not be processed for six months by the authority, it said. The air traffic and passenger numbers are nearing pre-outbreak levels in Turkey, according to official data. Hava-Is union, which said the new regulation is an intervention to pilots' freedom of labour and individual rights, will meet with transportation ministry and civil aviation officials to discuss the changes. Hava-Is said there is serious demand for Turkish pilots from Gulf countries and North American air carriers. There are 10,525 aircraft pilots in Turkey, according to aviation authority data. Last month, Germany said it will fast-track work permits and visas for several thousand foreign airport workers, mainly from Turkey, to help to ease summer travel chaos.<br/>

Duty-free retailer Dufry said Monday it would acquire Italian airport and motorway caterer Autogrill, expanding the Swiss company's growth opportunities in international markets as travel rebounds. Italy's Benetton family - the largest investor in Autogrill through its Edizione holding company - will transfer its entire 50.3% stake to Dufry at an exchange ratio of 0.158 new Dufry shares for each Autogrill share, according to Dufry. Edizione will become Dufry's largest shareholder with a stake of between about 25% and 20%. After the transfer, Dufry will launch a tender offer for the remaining Autogrill shares, wherein shareholders would receive 0.158 new Dufry shares for each Autogrill share. Alternatively, Autogrill shareholders will receive a cash component of E6.33 ($6.43) per Autogrill share. Xavier Rossinyol will lead the combined Group as CEO, Dufry said, adding that Autogrill's current CEO Gianmario Tondato da Ruos will assume the position of executive chairman of the North American business of the combined entity.<br/>

The Taliban and the United Arab Emirates are poised to strike a deal for the Gulf nation to run Kabul airport and several others in Afghanistan that could be announced within weeks, according to sources familiar with the negotiations. The Taliban, whose government remains an international pariah without formal recognition, have courted regional powers, including Qatar and Turkey, to operate Kabul airport, landlocked Afghanistan's main air link with the world, and others. But after months of back-and-forth talks, and at one point raising the possibility of a joint UAE-Turkey-Qatar deal, the Taliban is set to hand the operations in their entirety to the UAE, who had previously run Afghan airports, the sources said. An agreement would help the Islamist militants ease their isolation from the outside world as they govern an impoverished country beset by drought, widespread hunger and economic crisis. It would also hand Abu Dhabi a win in its diplomatic tussle with Qatar for influence. Under the deal with the UAE, Afghans will be employed at the airports, including in security roles, crucial for the Taliban who want to show they can create jobs but also because they staunchly oppose the presence of foreign forces, sources said. An Emirati state-linked contractor had been contracted to provide security services, which should be announced soon, while negotiations over airspace management are ongoing, they said.<br/>

Europe's Airbus posted flat first-half deliveries on Friday as it struggles to convert rising production plans into handovers to airlines amid tight global supply chains. The world's largest planemaker said it delivered 60 commercial airplanes in June, bringing the total for the year so far to 297, unchanged from the halfway point last year. "Airbus appears impacted by some production constraints," said Jefferies analyst Chloe Lemarie, who had earlier predicted the 21% year-on-year drop in June deliveries to 60 airplanes. Airbus needs to boost second-half deliveries by 35% to reach its full-year target of 720 units, she said in an investor note. Airbus posted an adjusted net total of 295 first-half deliveries after deducting two jets originally destined for Russia's Aeroflot that it had booked last year. On the demand side, Airbus reported 442 orders, or a net total of 259 after cancellations in the first half, up sharply from 38 net orders at the same point last year. That included seven A350 Freighters to at least one undisclosed buyer. Airbus also booked a recently announced major order for 52 jets to Australia's Qantas, including 12 wide-bodies amid signs of a pickup in demand for large models. Delta topped up a fleet of A330neo jets with one extra order. The US major is widely expected to announce an order for some 100 Boeing 737 MAX 10 in coming days.<br/>

SMBC Capital Aviation, one of the world’s biggest aircraft lessors, took a $1.6b write-off to cover the loss of its planes stuck in Russia, but struck an optimistic note about the rebound the industry is enjoying. The Irish-based lessor said on Friday that it had taken a $1.6b impairment to cover the loss of 34 of its planes still in Russia following the invasion of Ukraine. Despite terminating the leases for the planes in line with international sanctions, Russian carriers were continuing to fly the aircraft. SMBC said it was “unlikely” that it would be able to recover the aircraft “within a reasonable timeframe, or at all”. The company added that it had the “benefit of significant insurance coverage” and expected that “substantial recoveries will be secured”. The war triggered a global rush among overseas leasing groups to recover more than 500 aircraft, worth an estimated $10b, from Russia. The country’s carriers, however, have continued to fly many of the planes, both domestically and internationally. Lessors have only managed to retrieve a handful of them in recent months despite efforts to repossess them at airports outside of Russia. Peter Barrett, SMBC CE, said the company had since renewed its insurance cover and that premiums had gone up “by multiples” in the wake of the war. The write-off left SMBC with a net loss of $1.1b in the 12 months to the end of March. It overshadowed a strong underlying performance for the year, with profit before tax and exceptional items of $336m — just shy of the $364.5m it reported in 2019, the year before the pandemic. Barrett said that despite “ongoing challenges, the business is benefiting from a market recovery that continues to gather pace and a positive rebound in airline and investor demand for our portfolio of high quality assets”.<br/>