general

Airline associations around the world have called for governments to ensure the global alignment of airport slot regulations to safeguard the consistent, fair, and transparent allocation of slots under the Worldwide Airport Slot Guidelines (WASG). In a joint statement, the African Airlines Association (AFRAA), Airlines for America (A4A), Airlines International Representation in Europe (AIRE), Arab Air Carriers Organization (AACO), Association of Asia-Pacific Airlines (AAPA), European Express Association, European Regions Airline Association (ERAA), International Air Transport Association (IATA) and Latin American and Caribbean Air Transport Association (ALTA) set out the benefits of the WASG, which has ensured decades of stability and consistency in the application of slot management. Under the WASG, consumers have benefitted from a consistent growth in reliable schedules and expansion to new markets, while airlines and airports have seen an increase in the utilisation of scarce airport capacity. Fragmentation of slot regulation risks disruption to airline schedules and imperils the advances in global connectivity, efficiency, competition and choice which have characterized the aviation industry in recent decades. With the number of slot-regulated airports worldwide growing steadily, it is vital that governments recognize the importance of the harmonization of slot regulations in line with the WASG. The WASG has undergone a significant revision in recent years, with improvements to the new entrant definition to increase competition and access opportunities at congested airports. Slot performance monitoring has also been better defined to ensure optimal use of allocated slots. It is therefore important that national or regional slot regulations are aligned dynamically with the WASG so that the aviation sector and travelers can immediately benefit from these and other enhancements to the system.<br/>

Latin American aviation is charting a course back to health despite receiving no direct government help in the Covid-19 crisis, with a battle for the skies heating up through mergers and expansion plans. On the brink of collapse when flights were grounded during the pandemic, three of the region’s largest airlines — Chile’s Latam, Avianca of Colombia and Aeroméxico — all exited US bankruptcy protection over the past 18 months. Others such as Brazilian carriers Gol and Azul have struck deals with creditors to reduce debts and financial obligations to more manageable levels.  As passenger numbers bounce back, growth is once again in focus. The sector’s dominant players have embarked on corporate combinations and launched new routes, with investors pumping in billions of dollars to aid the recovery. This spirit is embodied by the newly created Abra Group, a pan-Latin holding company bringing together Avianca and Gol under common ownership. It will challenge Latam, the regional market leader by fleet size and itself the result of a merger over a decade ago. While the two brands are to remain independent with separate managements, Abra says it will lead to cost savings and greater economies of scale, at the same time increasing revenues and investments. “You’ve seen consolidation in the US and Europe. Players like Lufthansa and Air France-KLM really now dominate the region, with low-cost rivals keeping them honest,” said Adrian Neuhauser, Avianca’s CE. “You’ve got very little of the old, one-market airline. And we think the same is starting to happen in Latin America.”  Abra’s ambitions suffered a setback last month, however, when Avianca abandoned an acquisition of stricken fellow Colombian carrier Viva Air. It blamed conditions imposed by regulators as unworkable.  Even so, analysts say there is logic to such business tie-ups, given the scope for greater bargaining power on fuel and aircraft purchases. <br/>

Aviation executives implored European leaders to pitch in more taxpayer funding to clean up emissions, warning that the region risks falling behind the US, where subsidies have jumpstarted funding for fossil-fuel alternatives. “Policy is absolutely critical to create momentum,” said Jonathan Wood, a vice president at Finland’s Neste Oyj, which produces biofuels for the aviation sector. “We need to get on with this. We have no time to look for the perfect solution.” Wood spoke on a panel Friday ahead of next week’s Paris Air Show, where French planemaker Airbus and its US counterpart Boeing stand to rake in billions of dollars’ worth of orders for fuel-guzzling jetliners. Aviation executives are using the industry’s biggest annual gathering to press the case for Europe to emulate the US and incentivize investment in cleaner fuels. They’re also lobbying fiercely against clean-air restrictions that would hit airlines finances and slow jet sales. The EU is mandating use of at least 6% biofuels and e-fuels in commercial aircraft by 2030, rising to 34% by 2040. “It’s a really steep ramp-up,” said Remona van der Zorn, sustainable strategy director at Dutch airline KLM. “That’s where it’s crucial to have these incentives.” The lobbying effort bore some fruit on Friday when French President Emmanuel Macron said France will help fund a E1b plant to produce sustainable aviation fuel. That’s just a trickle of the estimated $1.45t needed globally to reach net-zero carbon emissions by 2050. Airline executives hold the US Inflation Reduction Act, with subsidies of up to $1.75 a gallon for fossil-free aviation fuels, as a model for other regions to follow. The subsidies are already having an impact, said Chris Raymond, Boeing’s director of sustainable development. <br/>

France will invest E200m to boost the production of sustainable aviation fuels (SAF) as part of measures to make the French and the European aviation industry greener, President Emmanuel Macron said on Friday. "The French must be the champions of the ultra-sober aircraft," Macron said. The French President was speaking during a visit of a site of aerospace engine-maker Safran in Villaroche, in the Paris region, and ahead of the Paris Air Show next week. The E200m will notably help fund the construction in Lacq in southwestern France of a SAF production plant. Aviation is seen as one of the hardest sectors to decarbonise, with zero-emission aircraft not expected for more than a decade. The aviation industry set a 2050 goal of net zero emissions in 2021. The main path is widespread use of SAF, which so far makes up 0.1% of airline fuel consumption.<br/>

The hustle and bustle has returned to most of China's airports, an encouraging sign for the Chinese civil aviation sector, which has been fueled by rising demand for travel and the overall economic recovery. Travelers made nearly 51.7m air trips in May, 94.8% of the volume in May 2019, according to the Civil Aviation Administration of China (CAAC). The domestic air travel market has recovered, with the passenger transport on domestic routes in May topping pre-pandemic levels, showing an increase of 2.6% from May 2019. A significant recovery has also been seen in international flights. Chinese air companies have put more international flights into operation to cater for the surge in demand for cross-border passenger transport. China Southern Airlines currently operates 123 international flights per day, involving 85 international flight routes. Daxing airport has some 16 airlines operating international and regional routes, connecting with 22 other destinations around the globe, including London, Doha and Abu Dhabi. So far, international passenger flights have been opened to 61 countries and regions, recovering to about 80% of the level during the same period of 2019, according to the CAAC.<br/>

At more than 7 feet tall when fully extended and with 360 degree vision they’re formidable enough to make any would-be lawbreaker think twice. But Robocop they are not. These are the two robots the Singapore Police Force has introduced to patrol Changi Airport following more than five years of trials. And they are just the first such robots the force plans to deploy across the Southeast Asian city-state to “augment frontline officers” in the years to come. The robots, which have been patrolling the airport since April, are meant to “project additional police presence” and serve as extra “eyes on the ground,” according to the force, which describes them as the latest addition to its “technological arsenal.” And they are no mere gimic. During an incident, says the force, the robots are able to enforce cordons and warn bystanders using their blinkers, sirens and speakers while they wait for human officers to arrive. Members of the public can directly communicate with the force by pushing a button on the robots’ front. The Singapore Police Force said Friday that more robots would be “progressively deployed” across the city-state. “The integration of robotics enhances the operational efficiency and capabilities of our frontline officers, enabling them to be more effective in their duties,” said superintendent and operations head Lim Ke Wei of airport police.<br/>

A lot has changed in the four years since one of the aviation industry’s biggest air shows was held in person. The Covid-19 pandemic devastated travel demand, the aviation industry shed thousands of experienced workers and roller coaster appetites for new jets wreaked havoc on production rates of new planes. After all that, the Paris Air Show — a trade event where companies get a chance to showcase new technology, commercial and military aircraft, and strike deals — returns on Monday during a surge in air travel demand, with airlines starving for jets to feed it. The question is whether Boeing, Airbus and their numerous suppliers can catch up. “That’s creating pressure on the order books — it’s creating upward momentum on used aircraft lease rates and forcing airlines to make compromises,” said Andy Cronin, CEO of aircraft-leasing firm Avolon. Aviation analytics firm IBA estimated last week that there could be orders for about 2,100 planes during the show as airlines replace older aircraft and prepare for future growth in air travel. Over the past year, Boeing has logged large orders or preliminary agreements from customers including United Airlines, Saudia and new Saudi carrier Riyadh Air. Air India’s massive order earlier this year included both Boeing and Airbus jets. Turkish Airlines’ chairman told reporters last month that the carrier is planning to order around 600 aircraft, both wide-body and narrow-body planes. The order would be the largest ever for a single airline, though it isn’t clear whether that would come together in time for the show. IBA’s chief economist, Stuart Hatcher, wrote in a June 15 forecast that Delta Air Lines, Malaysia Airlines and Air France-KLM could be buyers, but the timing isn’t yet certain. Air Baltic could also look to expand its Airbus A220 fleet, he said. “It might still be too early to call any Chinese expansion yet given the political climate, but I wouldn’t be surprised to see top-up orders coming through,” Hatcher wrote. The major challenge for manufacturers now is increasing production. Slots for narrow-body jets, such as Boeing 737s and Airbus A320s, are sold out for years. Now that long-haul travel is returning, some airlines could also be looking to expand their fleets of larger, long-range jets.<br/>

Airbus said it signed orders for 60 A320 narrowbody aircraft and 10 A350 widebodies from undisclosed customers, flexing its sales muscle ahead of the Paris Air Show that’s resuming on the company’s home turf after a four-year hiatus. The sales, which include accords with leasing companies, will be added to the June tally, CCO Christian Scherer said at a press briefing in Paris, where he was flanked by Airbus CEO Guillaume Faury and other senior managers. Scherer said the air show, the biggest industry event and a venue where customers place large purchases, will produce more widebody agreements, as the segments shows a robust rebound from the coronavirus slump. Some analyst have estimated that Airbus might pull in more than 2,000 orders and commitment at the expo, which starts on the outskirts of Paris on Monday. Airlines and leasing companies are rushing to place orders as travel rebounds and delivery times grow longer. The race to increase output has been hampered by supply-chain bottlenecks, which Faury said he expects to continue for a long time. <br/>

Airbus SE is poised for a grand entrance at the Paris Air Show, where the European planemaker could announce a record 500-aircraft agreement with Indian carrier IndiGo on the first day. The proposed order, which would double the airline’s existing backlog, is for A320neo family aircraft, according to people familiar with the negotiations. IndiGo and Airbus are moving to announce the accord as early as Monday, said the people, asking not to be identified because the talks are private. Airbus is also working to firm up talks with Saudi carrier Flynas Co. for a large narrowbody order that could become another marquee deal of the event alongside IndiGo, other people said, confirming negotiations previously reported by Bloomberg News. Negotiations for both transactions could still drag out and final number might change, the people cautioned. Officials at Airbus, IndiGo and Flynas declined to comment. Airbus CEO Guillaume Faury said on Friday that the show will demonstrate how the industry is returning “back to the good old times of excitement.” Even before the event, Airbus said it struck deals for 60 A320 family aircraft and 10 A350s from undisclosed customers, setting the pace for what stands to be a few busy days of orders.<br/>

Boeing is preparing to accelerate production of its cash-cow 737 jets “soon,” the planemaker’s commercial chief said, as the company makes progress toward addressing a supplier defect that has slowed deliveries. The rate break to a 38-jet monthly pace will happen “sooner rather than later,” Stan Deal, who heads Boeing’s commercial airplane business, said Sunday in Paris ahead of the industry’s biggest gathering. He declined to say whether the 23% uptick — which would boost Boeing revenue — would happen by the end of this month or in Q3. Boeing’s Q2 results will likely be weighed down by production defects that have disrupted work at its factories and slowed deliveries of another critical source of cash, the twin-aisle 787 Dreamliner. The planemaker is working its way through workforce and supplier issues in the wake of the coronavirus pandemic that have led to cost overruns on fixed-price defense contracts and frustrated customers for its commercial aircraft. Ted Colbert, who heads Boeing’s defense division, also spoke ahead of this week’s Paris Air Show. He said the unit’s profit margins for Q2 would be in line with the 3.2% operating loss posted in Q1. Among the latest setbacks on the commercial side is a supplier shimming issue that’s disrupted handovers of the 787 as airlines head into the busy sumer travel season. The planemaker has delivered the first 787 to be inspected and repaired for the issue, Deal said. Meanwhile, the horizontal stabilizers flowing to Boeing’s South Carolina assembly line from the unnamed supplier have been cleared of the defective parts, he added.<br/>

Boeing predicts airlines around the world will add 42,595 jets valued at about $8t over the next two decades, even as concerns over climate change affect the way consumers travel. The US planemaker’s latest tally of industrywide deliveries over the next 20 years takes into account growing activism over jet emissions, said Darren Hulst, a Boeing vice president of marketing. He predicts a fall-off in commercial flights that are shorter than 500 miles, as governments urge consumers to switch to greener transport such as trains. Airlines’ ability to wring more flying and profit out of their aircraft will also temper sales. Boeing estimates that carriers will find ways to squeeze about 20% more productivity out of their fleets by moving to large planes, adding denser seating patterns and keeping the airliners airborne more hours each day. Still, Boeing expects the global fleet will nearly double through 2042, growing at a faster pace — 3.5% per year — than its 2.6% forecast for annual global economic growth. Airbus SE predicts that 40,850 new jets will enter the commercial market over that span. Both planemakers expect single-aisle jets to dominate the market for the next two decades. Boeing sees the workhorse jets like its 737 Max and Airbus’s A320neo accounting for 76% of projected sales, compared with a 80% forecast by its European rival. The Arlington, Virginia-based manufacturer doesn’t expect every category of jet to enjoy robust growth. Boeing reduced the numbers of air freighters and regional jets that it expected to enter the market by 1.6% and 14.6%, respectively, from last year’s forecast. Hulst is skeptical that single-aisle jets capable of flying between continents, like rival Airbus SE’s A321XLR, will ever command more than a small niche of the market. The US planemaker doesn’t have an offering that directly competes with its rival’s long-range narrowbody.<br/>

French-American jet engine maker CFM International said on Saturday it was redesigning some parts of its LEAP engine to improve durability in harsh climates, to be available for retrofit on Airbus and Boeing jets next year. It is the latest example of increased stress in climates such as the Middle East and India, which has exacerbated a logjam in maintenance capacity caused by post-COVID labour shortages, notably for CFM's competitor Pratt & Whitney. "We have seen the durability of the core not where we expected it to be," said Karl Sheldon, executive vice-president of the world's largest engine maker by number by units sold, co-owned by General Electric and France's Safran. The move is CFM's response to the analysis of high-pressure turbine blades and turbine nozzles when operating in harsh and hot environments, the company said in a briefing ahead of the Paris Airshow. CFM provides power for the Boeing 737 MAX and competes with Pratt & Whitney to power the Airbus A320neo family. Analysts say all engines take time to achieve the extended time between maintenance visits promised to airlines, designed to reduce repair costs, but most publicity has focused so far on Pratt & Whitney, which has a higher number of jets out of service. CFM said measures to improve durability in hot and dusty climates would also extend the time on wing in normal ones. Waiting times for repairs have increased as airlines industry copes with a rapid increase in demand, which is in turn forcing CFM into a second sharp industrial ramp-up for new engines - even steeper than the LEAP's introduction in 2016. CFM said the utilisation of its engines had returned to 92% of pre-pandemic levels, while production of new LEAP engines would increase by 50% this year to 1,700 units.<br/>