general

Airline revenue is pressured in ‘off-trend’ calendar quirk for holiday season

Airlines are coping with a calendar quirk that’s prompting more fliers to book flights on either side of December, creating an air pocket in the last month of the year. The US Thanksgiving holiday on Nov. 24 was the earliest its been since 2018, prompting more travelers to take a return trip the same month — unlike in the past three years when some of that spilled into December. And because many people will be on holiday Monday, Dec. 26, the day after Christmas, more fliers are delaying their trek back home until early January. As a result, fewer seats are being booked in December. “Four additional off-peak days between Thanksgiving and Christmas, as well as Christmas timing incentivizing January return travel” are behind the quirk, JPMorgan analysts Jamie Baker and Mark Streeter wrote Thursday in a research note to clients. Investor anxiety over December booking trends have hurt airline stocks, even as Delta emphasized it’s seeing strong demand. An S&P 500 index of major US carries is down more than 7% this month. <br/>

Water leak that affected 787 electronics prompts FAA call for inspections

The US Federal Aviation Administration intends to require that airlines inspect Boeing 787s for water leaks after several such incidents, including one involving water leaking into a jet’s electronics bay. “The findings include a loss of water pressure during flight and a potable water system leak, discovered after landing, that caused water to migrate into the forward electronic equipment bay and affect multiple pieces of electronic equipment,” says the FAA in a new proposed airworthiness directive (AD). Published in the US government’s regulatory library on 13 December, the proposal says detached or improperly installed ”clamshell couplings” caused the leaks. The FAA intends to require that airlines address the issue by completing steps detailed in an August service bulletin published by Boeing that addresses the issue. Carriers would be required to inspect 787-8, 787-9 and 787-10 “potable water systems for any missing or incorrectly installed clamshell couplings”, the FAA’s proposal says. It adds that several 787 operators experienced such leaks. One “reported a significant water leak due to a loose potable water system hose, caused by an incorrectly installed clamshell coupling within the lavatory”. Another instance involved water leaking from a detached clamshell coupling in a 787’s galley, the proposal says.<br/>

Brazilian airline workers union to go on partial strike from Monday

Brazilian pilots and flight attendants voted for a partial strike starting on Monday, the national aeronautical union said, as they demand better pay and working conditions amid high inflation. The union said in a phone call on Thursday that stoppages would take place at Brazil's major airports of Sao Paulo, Rio de Janeiro, Campinas, Porto Alegre, Brasilia, Belo Horizonte and Fortaleza every day between 6 a.m. and 8 a.m. because of the "frustration of negotiations for the renewal of the collective labor agreement." Azul and LATAM Airlines declined to comment on the strike. Gol did not immediately respond to a request for comment. The workers are demanding a 5% salary increase, in addition to a 5.9% raise to reflect inflation. Talks began in September, but the airlines have so far not agreed to increase pay beyond inflation, the union said. Though takeoffs would be postponed until after 8.a.m. from Dec. 19, the union said that flights carrying organs for transplants, transporting vaccines or sick people would not be stopped.<br/>

Canada certifies Embraer's E2 jets ahead of first Porter Airlines delivery

Brazilian planemaker Embraer said Thursday that its E2 family of commercial jets has received Type Certification from Canada's aviation regulator. The move opens room for Embraer to deliver in the coming days the first of fifty E195-E2 aircraft ordered by Toronto-based Porter Airlines. The E2 jets had already been granted certification by regulators in Brazil, the United States and Europe.<br/>

Spanish airport workers call off Christmas strike after company agrees on bonus

Planned strike action by workers at Spanish airport operator Aena (AENA.MC) around Christmas and New Year has been called off after the company agreed to reinstate an annual bonus, union CCOO said on Thursday. Workers affiliated to CCOO had planned to strike on Dec. 22, 23, 30 and 31 and on Jan. 5 and Jan. 6 to demand a bonus that was suspended during the COVID-19 pandemic. The company will resume paying an annual bonus in 2023 in two instalments in January and March, the union said. An Aena spokesperson declined to comment. Soaring consumer prices have pushed Spanish unions to press sometimes reluctant employers for pay rises, with strike action seen in sectors including fashion retail and airlines. Unlike other European countries, such as Britain, air travellers in Spain were mostly spared airport chaos last summer as Aena's furlough scheme during the pandemic allowed it to retain most of its workers, so it didn't face staff shortages when travel picked up again.<br/>

Four consortia interested in Greek regional airport concession

Greece has received initial interest from four consortia to take over the running of Kalamata airport in the south of the country, its sovereign wealth fund HCAP said on Thursday. Fraport has teamed up with Delta Airport Investments and Pileas to bid for the 40-year concession to operate Kalamata airport, on the Peloponnese peninsula, HCAP said. The other three consortia are GEK Terna with GMR Airports, Mytilineos with Corporation America Airports, and Egis Airport Operation with Aktor Concessions and Aeroports de la Cote D’ Azur. The airport has been operated by Greece’s Civil Aviation Authority for the past 63 years and the government is offering the new concession under its privatisation programme. HCAP said it expects to decide which investors qualify for the second phase of the binding offers in Q1 2023. Kalamata airport handled 340,000 passengers in 2019 and is close to several popular destinations for foreign tourists. <br/>

Heathrow ground handlers suspend strike after improved pay deal -Unite

Britain's Unite labour union said on Thursday that ground handlers at Heathrow airport employed by Menzies would suspend a planned strike, which was due to start on Friday, after the company made an improved pay offer. Unite, which did not disclose the latest revised pay offer, said it would now ballot its members on the wage revision, while adding that it would go ahead with another strike planned from Dec. 29, pending the outcome of the ballot. Menzies welcomed the announcement. "We are hopeful that this revised offer will be accepted allowing us to give our employees their well-deserved pay increase," said Miguel Gomez Sjunnesson, Menzies Executive Vice-President Europe.<br/>

Asia-Pacific airlines add new international routes as Covid-19 fades

Asia-Pacific carriers are beefing up their international networks as the region’s air travel recovery continues. Air India launched its first service on the Mumbai-San Francisco route on 15 December, which follows its launch of Bengaluru-San Francisco on 2 December. The new Mumbai-San Francisco service will be operated three times weekly with Boeing 777-200LRs, and takes the carrier’s US network to 40 non-stop flights weekly. “As part of our five-year transformation plan, Vihaan.AI, we plan to significantly enhance connectivity between India’s major cities and prime global destinations,” says Air India CE Campbell Wilson. “The non-stop flight between India’s financial capital and Silicon Valley is a step towards achieving enhanced customer experience. With the launch of this route, we will have a weekly availability of 40 non-stop flights that will bolster India’s connectivity with the USA.” Hong Kong’s Greater Bay Airlines, which started services in July, has announced that it will commence services on the Hong Kong-Seoul Incheon route from 17 January 2023. The new route, it says, was made possible by Hong Kong’s continued retreat from its tight coronavirus prevention measures, which all but cut off Hong Kong from the world since early 2020. Greater Bay will operate the service three-times-weekly using 737-800s. In early December, Greater Bay announced that it would also commence operations to Tokyo Narita in January. Taiwan’s EVA Air also plans to grow its network, with the addition of a daily Taipei-Manila Clark service from 30 March 2023. It will use Airbus A321s on the route. EVA also operates daily to Cebu. Virgin Australia, meanwhile, says it will launch a daily Cairns-Tokyo Haneda service from 28 June 2023, using 737 Max 8s. According to Cirium fleets data, Virgin Australia operates 60 737-800s, five 737-700s, and has four Max 8s and 25 Max 10s on order. “Today’s announcement is a huge development for our region’s tourism industry and economy as we continue our post-COVID recovery,” says Cairns Airport CE Richard Barker. “It is also further evidence that long-range, narrowbody aircraft such as the 737-8 are game changers for our region, bringing destinations such as Japan closer with more cost-effective and fuel-efficient operations.”<br/>

India boosts facilities at Delhi airport to ease year-end travel congestion

A surge in travel that overwhelmed India's busiest airport this week as the holiday season sets in has eased after authorities added staff and security equipment to cope with the surge in travellers. Passengers queued for hours to pass through check-in and security at the main domestic and international terminal of Indira Gandhi International Airport in Delhi, leading to some flight delays. Civil Aviation Minister Jyotiraditya Scindia said more x-ray machines and staff were added to Terminal 3. A video on Thursday showed passengers appearing to check-in smoothly. He said additional measures were also being taken at other airports, including those in the western city of Mumbai and Bengaluru in the south. "In the last 24 to 36 hours, all agencies have swung into action to mitigate congestion at every checkpoint at all major airports. Congestion at entry points and check-in counters at T3 has eased," Scindia said in a post on LinkedIn. Indian infrastructure conglomerate GMR Group, which leads a conglomerate that owns and operates the airport, did not respond to a request for comment. Like in other countries, air travel in India has picked up as COVID-19 restrictions have eased. The congestion at Delhi airport prompted India's biggest airline IndiGo to ask passengers to arrive at Delhi airport for check-in at least 3-1/2 hours before their flight, instead of the usual two hours. Other airlines had to delay flights, a Reuters journalist who travelled from Terminal 3 said.<br/>

Airports eye travel rebound induced by K-culture boom next year

Piggybacking on the global popularity of Korean culture led by K-pop and K-dramas, Korea Airports Corporation said Thursday it is going all out to attract more international travelers next year. “Welcoming 2023 and 2024 as the Visit Korea Year, we plan to bring in as much as 8.5m inbound travelers, 40% of the pre-pandemic level, by combining K-culture and tourism,” Korea Airports Corporation CEO Yoon Hyeong-jung said. Visit Korea Year is the government’s tourism promotion scheme to attract 30m international travelers and generate tourism related expenditure of $30b by 2027. Of the 14 airports operated by KAC, seven international airports including Gimpo, Gimhae, Jeju, Daegu and Chungju will be at the forefront of creating new flight routes and liaise tourism packages and K-pop concerts, Yoon said. In particular, Gimhae International Airport located in South Gyeongsang Province will step up to expand its routes to the western region of the US and Europe. KAC is seeking to provide incentives such as cutting airport charges and landing fees for long-haul airlines. In a move to bring back deep-pocketed Chinese tourists, who make up 40-45% of the its revenue, the company plans to visit Beijing Capital International Airport and other airports to as part of its marketing strategies. “At the same time, we will target emerging markets like Indonesia, where more than half of the population is in their 20s and 30s, and are active consumers of Hallyu content. Daegu International Airport can be the key hub for inbound tourists from Indonesia, once we create direct flights from Jakarta,” said Yoon.<br/>

Travel chaos at Australian airports on busiest day of the year

Long wait times and possible flight delays are anticipated across the nation on Friday, as airports brace for the highest number of travellers this year. With tens of thousands of people attempting to return home or visit family before the weekend, travellers have been urged to carefully plan their trips to avoid being affected by the delays. Brisbane airport head of public affairs Stephen Beckett said a post-Covid record of 14,300 people would travel through the airport’s international terminal on Friday. “It’s hard to remember this time last year if you were travelling internationally you would have had to have done a seven-day quarantine period,” he said. “We had a cap of 1000 people a week who were allowed into Queensland.” Beckett said the domestic terminals were dealing with “lots of movement”, but queues were moving relatively quickly. A few people had been “caught short” and might have missed their flights, he said. “If you’re travelling today we do recommend that you arrive 90 minutes before a domestic flight and pre-book your Ubers and taxis,” Beckett said. “We are hearing from a few people in the terminal this morning they got caught short with wait times. Make sure you’re aware of what and can’t go in your hand luggage and remember just pack your patience.” An airport security strike planned for Monday had been averted, which was “great news for families”, Beckett said.<br/>