general

This year was supposed to herald air travel’s big comeback, with China reopening, airlines ramping up flight schedules and airports going on a hiring spree to handle the surge. But a potential bottleneck to that growth is looming in form of a shortage of aircraft engines and spare parts, particularly on workhorse Airbus SE and Boeing Co. jets. The shortfall is being exacerbated by the fact that more carriers are flying with the latest-generation turbines that — while as much as 20% more fuel efficient — also have been prone to far more frequent maintenance cycles than their more robust predecessors. As a result, airlines around the world have been forced to ground hundreds of airplanes just as they gear up for what stands to be a busy summer travel season. Air Baltic Corp AS says 10 of its 39 Airbus A220s are currently out of service due to engine issues. In the US, budget carrier Spirit Airlines Inc. warned it would scale back growth plans due in part to a spate of malfunctioning engines. And India’s IndiGo is seeking compensation for about 30 planes it has had to ground due to parts shortages, some of which are tied to engines. Supply-chain constraints were rippling through the industry even before the pandemic, and in its aftermath engine makers have struggled with a lack of skilled mechanics and component shortages. The latest engines from Raytheon Technologies and a General Electric-Safran SA venture feature exotic metal alloys, coatings and composites needed for them to operate at furnace-like temperatures. Airlines say turbine components are wearing more quickly and being sent to the shop earlier than initially expected. “The engines are running hotter, and the materials used for that are not withstanding the pressure, so there are more engine-related problems than we used face previously,” said Qatar Airways CEO Akbar Al Baker.<br/>

The Biden administration is seeking additional funding for the FAA, funds that aim to boost hiring of air traffic controllers and facilitate other improvements to manage increasingly congested airspace. The White House on Thursday proposed $16.5b for the agency, up from the $15.2b the FAA received in fiscal 2023. The request would increase funding for the National Airspace System to $3.5b, up $500m, to improve the systems that oversee the country’s airspace “to safely accommodate the growth in traditional commercial aviation traffic alongside new entrants from the commercial space, unmanned aircraft, and advanced air mobility industries.” The request, part of a broad budget proposal for the 2024 fiscal year, comes less than two months after a pilot-alert system outage prompted the FAA to ground flights nationwide for the first time since 9/11. Airlines and the Transportation Department have sparred over causes of flight disruptions, with some company executives blaming a shortfall of air traffic controllers. Airlines last year scaled back their growth plans to put more slack in their schedules as they grappled with a shortage of pilots and aircraft. President Joe Biden’s request highlighted the increasing number of rocket launches by space companies as one of the strains on US airspace. Last year, the FAA managed airspace for a record 92 space missions – a total that includes rocket launches and spacecraft reentries, which it expects to top in 2023. Many of those missions launched from Florida, a state which has seen more and more commercial air traffic as well. Biden is also seeking a $3m increase for consumer protection work at the Transportation Department, which is pushing airlines to formalize policies like ensuring families can sit together without paying a fee as well as prompt refunds when things go wrong.<br/>

The Biden administration told Congress on Thursday its pick to head the FAA is fully qualified and does not violate a law requiring civilian leadership. Republicans question whether Denver International Airport CEO Phil Washington has the required aviation experience needed to serve as top US aviation regulator. Transportation Department (USDOT) General Counsel John Putnam said in a letter reviewed by Reuters that Washington met the legal requirements for the job, adding "the fresh perspective he will bring to his top-to-bottom assessment of the FAA's culture and operations will be a benefit." Senator Ted Cruz, ranking Republican on the Senate Commerce Committee, and other Republicans say Washington, who retired from the U.S. Army in July 2000, must have a waiver from rules requiring civilian leadership to head the FAA. "Congress and the president have strictly, repeatedly, and on a bipartisan basis interpreted the law, since it was written, as excluding retired military members like Phil Washington," a spokeswoman for Cruz said. She rejected USDOT's letter, arguing it was "based on a dictionary and an unrelated NASA statute." The FAA, without a permanent leader for nearly a year, has come under fire after a series of recent near miss incidents and still faces questions about its oversight of Boeing after two fatal 737 MAX crashes. In January, the FAA halted all departing passenger airline flights for nearly two hours because of a computer outage, the first nationwide ground stop of its kind since Sept. 11, 2001.<br/>

Germany’s Fraport has upped its target to cut its directly-controlled carbon dioxide emissions at Frankfurt airport. The airports operator says it aims to emit a maximum of 50,000t of CO2 a year from areas that fall under its direct control at Frankfurt by 2030, down from a previous maximum target of 75,000t a year. Frankfurt currently emits 116,000t of carbon dioxide annually. Fraport acknowledges, however, that it only has direct responsibility for about 10% of Frankfurt airport’s CO2 emissions. The vast majority of an airport’s emissions come from the aircraft that use it. The operator says it is working with airlines, German rail company Deutsche Bahn and other local industry partners to implement joint climate measures covering emissions beyond its direct control. Fraport CE Stefan Schulte says that while he welcomes “any political initiative to protect the planet’s climate”, the operator “cannot allow unfair competition to be the end result”. Schulte asserts that “if flying becomes more expensive only within Europe, passengers will simply switch to other routings”. In the neighbouring Netherlands, the Dutch government has proposed a cap on the number of flights operating to and from Amsterdam Schiphol in order to address local concerns about noise and emissions. The government last June proposed limiting aircraft movements at the hub to a maximum of 440,000 a year, down from the current capacity of 500,000. This has prompted KLM and other airlines to take legal action against the proposal, arguing that the aviation industry has set its own decarbonisation targets.<br/>

Flights across various UK airports were delayed or cancelled as heavy snowfall prompted by an Arctic blast caused disruptions. Heathrow, Gatwick and London City were among the airports whose aircraft movement was hit with the cold snap, according to Express news. UK’s Met Office has issued a warning that the condition could get even worse as it expects more snowfall. Arrivals board of Gatwick Airport showed that the majority of the flights were delayed or cancelled due to snow. Heathrow, which is said to be one of the biggest international airports in the country, has also cancelled nearly 25 arrival flights, according to the news publication. Besides, flight disruptions were reported at Bristol Airport, with the airport authorities warning passengers of delays due to the yellow weather warning across the South West region, The Independent reported. In a statement posted on its Twitter account, the airport said: “The Bristol Airport teams are working hard on snow clearing operations, but as the snow continues to fall, flight operations have been suspended until 1100. Passengers are advised to contact their airline for specific flight information prior to travelling to the airport and please take extra care.""<br/>

Syria's Aleppo International Airport will resume operations on Friday morning after being shut down because of an Israeli air strike, state media said on Thursday, citing a statement by the ministry of transport. The ministry called on all air carriers to reschedule all flights and said the airport is ready to receive relief aid planes for earthquake victims. An Israeli air strike knocked Aleppo airport out of service on Tuesday and forced Syrian authorities to reroute flights carrying aid for people affected by last month's earthquake, Syrian state media reported. The attack caused "material damage" to the airport, SANA cited the source as saying, without mentioning any casualties. The Israeli military declined to comment.<br/>

Around 70% of flight attendants in Japan have reported that photos had been or likely had been taken of them secretly, an aviation trade union said Thursday, calling for tougher penalties against the act. Thirty-eight percent of respondents said their pictures had been secretly taken, while 33% said they were not sure but “believe” it has happened, with the combined result rising 9 percentage points from the previous survey in 2019, according to the Japan Federation of Aviation Industry Unions. While most cabin crew reported face and full body pictures had been taken, others replied that they were “upskirted” or had their chest or behind photographed. Twenty-nine percent said they had not been secretly photographed. Regarding how the issue was dealt with, 57% said they did nothing. A smaller percentage gave the offender a verbal warning or asked for the picture to be deleted, the survey found.<br/>

Indonesian authorities are hopeful for a return of flights to Mainland China, even as current frequencies remain well below pre-pandemic levels. DG of civil aviation Maria Kristi Endah Murni says the “accessibility of flights” between the two countries will “further encourage” the aviation sector’s recovery. She points out flights to China from cities other than capital Jakarta among the opportunities for airlines. Kristi’s comments come as Bali’s Ngurah Rai international airport welcomed an inaugural flight from Xiamen Airlines, connecting Xiamen to the tourist hotspot. The Chinese operator will fly its Boeing 737-800s daily on the route, and is currently the only carrier to fly between Xiamen and Bali. Chinese carriers have steadily ramped up flying to Indonesia, while their Indonesian counterparts lag behind in resuming flights to China. According to Cirium schedules data, Xiamen Airlines holds the largest share of frequencies between the two countries: the SkyTeam carrier also has daily flights from Xiamen to Jakarta, as well as thrice weekly flights from Fuzhou to Jakarta, operated by a mix of 787s and 737s. China Southern Airlines is the second largest by frequency, and has five weekly flights between Guangzhou and Jakarta operated by Airbus A330s and A321s. It also has thrice weekly flights between Shenzhen and Jakarta, as well as once-a-week flights between Manado and Guangzhou. Only three Indonesian carriers have scheduled operations to China: Sriwijaya Air, which flies to Wenzhou, Hangzhou and Fuzhou, flag carrier Garuda Indonesia, which only flies once a week to Guangzhou from Jakarta, as well as low-cost operator Lion Air, which recently launched once-weekly flights to Shenzhen from Bali. <br/>

President Ferdinand Marcos Jr's administration has approved 123 new projects that will form part of a pipeline of infrastructure worth 9t pesos ($163b) it hopes to start or complete in the coming years, the economic planning chief said on Thursday. Unlike the previous administration, which relied on foreign financing, including from China, Marcos has said he prefers to tap private capital to bankroll his infrastructure ambitions. Economic Planning Secretary Arsenio Balisacan said the 123 projects comprise mostly of those improving physical connectivity, including long-distance railways near the capital and in central and southern Philippines, and an upgrade of the ageing Manila international airport, the country's main gateway. The list also includes water infrastructure, like irrigation and flood management, and projects in digital connectivity, health, power and energy, agriculture, and others, Balisacan said in a regular news conference. This brings to 194 the government's priority infrastructure projects that will see faster permitting processes, 45 of which will be funded by the private sector through public-private partnerships. Marcos is banking on infrastructure to support his goal of growing the Philippine economy by as much as 8% before his six-year term ends in 2028, and halve the country's poverty rate to 9%.<br/>

Australia has followed the US in removing its controversial requirement for arrivals from China to take a pre-departure COVID test. The federal government said the rules would be abolished from 12.01am on 11 March 2023 and followed no new variants of concern being discovered. It will apply to both mainland China as well as the Special Administrative Regions of Hong Kong and Macau. China fully opened its border by axing quarantine on 8 January, and the testing changes came into effect on 5 January. “This is a sensible, measured decision based on decreasing COVID-19 case numbers in China, regular data updates from China on case numbers, and the fact that we have strengthened our capacity to detect and respond to emerging variants of concern within Australia of international origin,” said Health Minister Mark Butler on Thursday. The announcement significantly came just hours after the US made the same decision and followed similar moves by Korea, Japan, France and Italy. The move will be seen as a boon for the aviation industry, which has been relying on Chinese carriers increasing capacity into Australia to repair the slower-than-hoped-for international recovery.<br/>

Lessor BOC Aviation is optimistic about the global airline market, although its exposure to Russia hurt profitability in 2022. In BOC’s 2022 results statement, CE Robert Martin painted an optimistic picture for air travel, noting a “robust recovery in passenger demand”, which helped cash flows for the aviation sector. “The pace of airline passenger demand recovery and the airline sector’s return to profitability has positively surprised most of the aviation industry,” says Martin. “This demand strength has enabled airlines to boost pricing, offsetting higher labour and fuel costs to generate record yields and – in some cases – record profits. This has especially been the case for airlines in the United States, the Middle East, Australia and even parts of Asia, where demand recovery has been most pronounced.” Martin notes that the easing of travel restrictions in China this year will provide a further boost to the sector, particularly for Asian carriers. Despite the optimistic outlook, net profits fell 96.4% to $20m. BOC Aviation attributes the shortfall to a $507m in write downs against aircraft in Russia - several key countries imposed sanctions on Russia following its invasion of Ukraine in February 2022. <br/>

General Electric Co forecast revenue at its cash-cow aviation business to grow by at least low-double digits through 2025, sending its shares to levels not seen since 2018 on Thursday.<br/>The shares rose 6.5% after CE Larry Culp said at the company’s annual day for investors that a recession was “the last thing on our mind.” The Boston-based conglomerate’s shares have benefited from strong aerospace demand and the recent spinoff of its healthcare business, even as its renewable energy unit has struggled. GE stuck to its profit expectations for 2023 despite the dim economic outlook and persistent supply shortages. It expects adjusted earnings per share of $1.60 to $2.00, with revenue growth in the high single digits. “We’re well positioned to have a strong year,” Culp said. Through 2025, GE expects profit margins at GE Aerospace to be about 20%, company executives told investors at a conference in Ohio. A jump in air travel has driven up sales at its aerospace division, which makes and services engines for Boeing and Airbus jets.<br/>