IATA has revised traffic recovery estimates for the Asia-Pacific, helped by Japan’s decision to finally reopen its international borders. The association’s regional vice president for Asia-Pacific Philip Goh says the region is expected to recover between 73-74% pre-pandemic traffic by year-end. It is a slightly higher estimate compared to figures disclosed in September, which put the recovery at around 70-73%. Goh was speaking at a virtual briefing on 11 October, the same day that Japan swung open its borders in a highly-anticipated reopening that will see restrictions such as arrival caps and quarantine scrapped. He also notes that the revised recovery figure is more than 20 percentage points higher than traffic figures for August, an increase that is “not hard to imagine”, as international markets in Asia-Pacific open up, and domestic travel demand remains robust. “Recovery is on track, but we are still a long way off. [However], there is no mistaking…that the momentum is very strong,” says Goh. The latest figures also take into account an imminent reopening of China, though Goh declines to comment on when the country will swing open borders. China – with its continued closure – remains the “elephant in the room” – among other factors like manpower issues and economic headwinds – that is hampering recovery momentum, says Goh. He adds that China’s reopening “will be eagerly awaited” by many in the region, especially countries which rely heavily on Chinese tourist arrivals, like Vietnam and Thailand. China remains committed to a zero-infection strategy for managing the Covid-19 pandemic, which has seen major cities put under lockdown. <br/>
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The latest version of the US Senate's defense bill does not contain an amendment to extend a December deadline for Boeing to win regulatory approval for the 737 MAX 7 and MAX 10 jetliners, according to sources and documents seen by Reuters. Late last month, Republican Senator Roger Wicker proposed extending until September 2024 the deadline for the US planemaker to win approval for the two new 737 variants. Unless it gains an extension from Congress, Boeing must meet new modern cockpit-alerting requirements that could significantly delay the planes' entry into service. Wicker had sought to attach the measure to the version of the defense bill that was filed on Tuesday. Boeing shares, which were trading around $135 a share before Reuters reported the news, fell to $131.57 at the close, down 33 cents from the previous session's close. The requirements were adopted by Congress as part of certification reform passed after two fatal 737 MAX crashes killed 346 people and led to the bestselling plane's 20-month grounding. Wicker, top Republican on the Senate Commerce Committee, did not immediately comment. There are other opportunities to make changes to the defense bill and an extension could be attached to other measures Congress will consider before year end.<br/>
European regulators and politicians need to pave the way for further consolidation within the airline sector if its operators are going to be able to compete against global rivals, the head of the world’s biggest aircraft lessor argues. Speaking during a wide-ranging panel debate at Eurocontrol’s Where to Next for European Aviation conference in Brussels on 4 October, Aercap chief executive Aengus Kelly said that while US carriers have thrived since consolidation moves after the financial crisis, national interests continue to hold back development of European airlines. “Nobody deals with the airlines more than we do,” Kelly says. ”The biggest challenge in this market [Europe] is the nationalism that surrounds airlines. The US is an example of what can happen if we want to try to create durable, profitable, tough airlines here in Europe that can take on the world,” he says, noting the sector remains too fragmented and with too many political interests. Cross-border consolidation in Europe has thus far been driven through holding company structures, under which individual brands operate as part of a wider group, or by pan-European low-cost carriers moving into the space vacated by airline failures. The holding company structure is in part a response to European carriers needing to retain national traffic rights in parts of the world without agreements covering EU-wide ownership rules. ”Are airlines as profitable as they could be?” Kelly asks. ”No, but one of the impediments is here in Brussels and in European capitals, where they have to allow airlines to achieve scale. You are not really going to stand up on an international basis with 50 aircraft, you just don’t have the scale and buying power. To be fair to airlines over the course of the last 20 years, the management of airlines has improved dramatically."<br/>
London’s Heathrow airport has warned of slowing demand for flights over the winter, as a predicted rebound in Covid-19 and the cost of living crisis loom over the travel sector. However, Europe’s biggest airport said it expected peak days during the Christmas period “to be very busy”. “While we face many economic headwinds, as well as the legacy of Covid, our aim is to get back to full capacity,” Heathrow CE John Holland-Kaye said. “Our focus over the next 12 months is to get capacity, service levels and resilience back to the high levels that they were before the pandemic.” After a big drop in passenger numbers earlier in the pandemic, the airport scrambled to boost staff numbers as travellers returned this summer. Heathrow said it had recorded the busiest summer of any European hub airport. However, the rise in demand and a shortage of ground staff caused severe disruption at Heathrow over the peak summer period, resulting in thousands of flight delays and cancellations that angered customers and prompted a cap of 100,000 passengers per day. The limit was originally scheduled to run until September 11 and led to a row with some airlines, notably Emirates, which were taken by surprise by the measure and objected to being forced to disrupt passengers’ journeys at short notice. Emirates described the cap as “entirely unreasonable and unacceptable” and warned of “airmageddon” at the hub over the summer. However, the UK’s busiest airport said the cap had kept “supply and demand in balance” and that “the vast majority of passengers travelling through Heathrow this summer had a very good experience”. The cap is scheduled to be lifted on October 29, the end of the aviation industry’s summer season. “Resource levels across the airport, airlines and their ground handlers have been increasing.” Holland-Kaye said. “We are working with our airline partners to develop a more targeted mechanism, which protects passenger service during peak periods.”<br/>
Boeing said Tuesday deliveries rose in September to 51 airplanes, while orders rose by 90 as the planemaker continues to see strong demand for new aircraft. Boeing deliveries last month tied its 51 deliveries in June, when it exceeded the 50-plane threshold for the first time since March 2019. In August, Boeing deliveries rose to 35 airplanes after it resumed handovers of its 787 Dreamliner after a 15-month delay. Last month, Boeing had 51 new 737 MAX airplane orders and 45 widebody airplanes, including 14 777s. In September, Boeing delivered 14 widebody planes, including 7 787s, including three 787-8s to American Airlines. American Airlines told Reuters Friday that since August it has received four 787s from Boeing and all are in service. Boeing’s commercial order backlog now stands at 4,354 planes. Boeing has delivered 328 airplanes in the first nine months of 2022, including 267 737 MAXs.<br/>
Boeing sees travel in Latin America ramping up more quickly than in other regions as countries loosen regulations and household incomes rise, the company's regional analyst said on Tuesday. Boeing expects Latin American air traffic to grow an average of 4.4% annually over the next two decades, surpassing the 4% growth it forecasts for the industry worldwide, helped by a trend towards more liberal policies over the next 10 years. "We see liberalization not only as an engine of growth for the industry, but also as a great way to democratize air travel and make it accessible for a larger number of people," David Franson, the company's regional director of market analysis, told Reuters. Franson said a trend toward looser state control had already helped develop a network of low-cost carriers in the region, adding more routes in Latin America. Low-cost carriers such as Argentina's Flybondi and Chile's JetSmart have already found a foothold, while Mexico's Volaris has focused on a strategy of so-called "bus-switching," targeting traditional bus users who previously could not afford pricier plane tickets. Airlines across Latin America have added 200 net airport pairs to their networks over the past 10 years, he said. While some countries have been hesitant to give airlines free rein due to concerns over economic competitiveness, labor standards and the environmental impacts of air travel, the move towards liberalization started decades ago by the United States and Europe is expected to keep up, Franson said.<br/>
Airbus jetliner handovers increased in September, while remaining short of the monthly average needed to reach an already downgraded year-end goal. The planemaker delivered 55 aircraft, up from 39 in August, it said Monday, confirming an earlier Bloomberg report. That takes the net tally to 435, meaning it must ship an average 88 per month to hit the annual target of 700. Airbus is clinging to the goal even as labor and raw-material shortages at suppliers make boosting production tougher. While a year-end push is far from unusual, the scale of this year’s challenge stands out, with Chief Executive Officer Guillaume Faury saying last month that hitting 700 jets leaves “a hell of a lot of work to be done.” Qantas Airways CEO Alan Joyce last week warned against lengthy delays to deliveries as he prepared to meet with Faury for a progress report on key programs. Airbus booked 13 orders in September after securing none in August, including six A320-family aircraft for Chinese carrier Sichuan Airlines. The month also saw three cancellations, down from 19 in August.<br/>
The government of Panama and energy companies, including SGP BioEnergy, announced Tuesday that they will add green hydrogen production to an advanced biorefinery in development. The facility plans to refine 180,000 barrels a day of biofuels, including sustainable aviation fuel (SAF), and generate 405,000 metric tons of green hydrogen annually. Producing green hydrogen will allow the facility to operate with net-zero emissions, SGP BioEnergy said in a news release. The airline industry is harder to decarbonize than other types of transportation, so a massive ramp-up in SAF output will be needed for aviation to reach net-zero emissions. SGP BioEnergy first announced the plan for the facility, located in Colon and Balboa, Panama, in May. Construction is set to begin in 2023. For the project, SGP BioEnergy will work with Topsoe Sustainable Aviation Fuel to produce green hydrogen from waste carbon and renewable fuels by-products produced during refining, the release said.<br/>
Mainboard-listed SIA Engineering Co announced early Wednesday the extension of its partnership with Hawaiian Airlines to provide airframe maintenance services for the airline's A330-200 aircraft. Separately, the aircraft maintenance, repair and overhaul service provider said it signed a 10-year agreement with Malaysian low-cost carrier MYAirline to provide support services for the latter's fleet of Airbus A320 aircraft. The deals are not expected to have a material impact on the group's earnings per share or net tangible assets per share for the year to March 31, 2023. Under the new agreement with Hawaiian Airlines, SIAEC will perform checks on 11 of the airline's aircraft into 2027. Maintenance services will be undertaken by the group at its facility in Singapore. Based in Honolulu, Hawaiian Airlines currently operates a fleet of 24 A330-200 aircraft, serving 13 gateway cities in the United States and nine destinations throughout Asia and South Pacific. "This signing signifies the confidence that Hawaiian Airlines has in SIAEC's technical strengths and capabilities," said Jeremy Yew, the group's senior vice-president of base maintenance services. Meanwhile, under SIAEC's new agreement with MYAirline, the group will provide component support coverage for aircraft and engine spares as well as repair and overhaul support services for the airline's fleet of Airbus A320 aircraft.<br/>