general

Severe weather, FAA shortfalls kick off rocky start to summer air travel

Flight disruptions mounted Tuesday as severe storms and staffing issues kicked off a rocky start to summer. More than 6,400 flights US flights were delayed as of Tuesday evening and another 1,800 were canceled, FlightAware data showed, as thunderstorms that derailed thousands of trips over the weekend lingered in airspace that is heavily congested on a clear-weather day. That’s on top of more than 8,800 U.S. delays and 2,246 cancellations Monday. The FAA paused flights bound for New York’s LaGuardia Airport, John F. Kennedy International Airport and Newark Liberty International Airport in New Jersey. Delays were averaging three hours or longer at those airports. The FAA said that the thunderstorms were blocking arrival and departure routes. The disruptions come ahead of the busy Fourth of July holiday travel period, when millions are expected to fly. The TSA said it could screen more travelers than in 2019, before the pandemic, raising competition for spare seats. The Biden administration has pressured airlines to improve their operations after widespread flight disruptions last spring and summer, which prompted carriers to trim their overambitious schedules. But the industry struggled to recover this past weekend from a series of thunderstorms that didn’t let up for days. Thunderstorms are difficult for airlines because they can form with less warning than other major weather obstacles like winter storms or hurricanes. Rolling delays could force crews to reach federally mandated workday limits and further worsen disruptions. About 30,000 flights have arrived late since Saturday, FlightAware data showed, with cancellation rates from Saturday through Monday up more than three times the average for the year. Some airline executives have also blamed some of the disruptions on shortages of air traffic controllers. <br/>

Ottawa airport to test feasibility of dedicated traveller lines

The Ottawa International Airport will soon have dedicated Verified Traveller screening lines as part of what the federal government is calling a pilot project. Transport Minister Omar Alghabra announced Tuesday that the Ottawa and Halifax airports would be launching a pilot project to test the feasibility of having dedicated lines open on a daily basis at these airports by Aug. 23. The lines would be open during peak periods. Front-of-the-line service would be offered to verified travellers during off-peak times. "As we enter the busy summer travel season, we are working hard to ensure a smooth security screening process for travellers," Alghabra said. "This new Verified Traveller program will help ease congestion over time and builds on our $1.8b investment for CATSA in Budget 2023 to create a safe and smooth passenger experience for all Canadian travellers." Ottawa was passed over for an expansion of the trusted-traveller program that was announced in May in six other Canadian cities. The new lines provide eligible travellers with select benefits at security screening checkpoints, such as keeping laptops, large electronics and compliant liquids and gels in their carry-on, and keeping shoes, belts and light jackets on. Airport spokesperson Krista Kealey says the airport authority is delighted with the news. "YOW is at 80% capacity of its pre-pandemic passenger volumes; with airlines like Porter growing at YOW, our new non-stop service to Paris with Air France, and Air Canada, WestJet and Flair airlines introducing new routes and restoring previous air service, it’s vital that Canada’s Capital offers the same time saving screening process available to qualified passengers at other Canadian Tier 1 airports," a statement said. "We look forward to working with the Canadian Air Transport Security Authority to introduce the program in the coming months." Mayor Mark Sutcliffe praised the move on social media Tuesday. "I'm pleased to see the Federal Government responding to Ottawa's request," he said in a tweet. "Starting this August, travellers will experience a more efficient travel journey through our airport during peak hours. This is an important first step to ease congestion and streamline screening."<br/>

US lawmakers make new push for expanded drone shootdown authority

A group of bipartisan US lawmakers said on Monday they are making a new push to expand government authority to detect and destroy drones that could pose security threats. Representatives Chrissy Houlahan, Mike Gallagher, Troy Carter and Mike Johnson introduced legislation that would allow state and local law enforcement and critical infrastructure operators to use drone detection technology. It would also authorize the Transportation Security Administration to proactively protect transportation infrastructure from drone threats. Houlahan said she thinks the bill could get attached to an annual defense bill. A parallel drone bill was introduced in the Senate in May. "We really have not enough legislation that protects the American people from really catastrophic effects of a drone strike," she told Reuters on Monday, adding that the push was sparked by concerns about drones in places including presidential inaugurations and high-profile sporting events such as the Super Bowl and the Olympics. The bill would also reauthorize existing government drone authority that expires on Sept. 30 and create a new pilot program allowing a limited number of state and local law enforcement agencies under federal oversight to destroy threatening drones. The White House and US sports leagues have been pushing since 2022 for expanded authority to detect and disable threatening drones. The US Chamber of Commerce, National Football League, Major League Baseball and other organizations said in a June 5 letter that without expanded authority, airports and sporting events "are at substantial risk from malicious and unauthorized (drone) operation."<br/>

IATA expects Latin American airlines to lose $1.4b in 2023

Despite having one of the most robust traffic recoveries globally after the COVID-19 pandemic, Latin American airlines are expected to record a net loss of about $1.4b in 2023. That’s the latest figure revealed today by the IATA during IATA’s Wings of Change celebrated in Mexico City. Even before the pandemic, operating a profitable airline in Latin America & the Caribbean was complex. Carriers in the region regularly lost money, except for a few companies such as Copa Airlines. This year Latin American companies are expected to record traffic growth. Many countries will leave behind the COVID-19 pandemic, and there’s a boom in the ultra-low-cost segment, with companies such as Volaris, JetSMART, and Sky Airline becoming regional powerhouses. Nonetheless, this traffic growth is improving airlines' bottom lines across the region. On Tuesday, IATA’s regional vice president for the Americas, Peter Cerdá, said carriers in the region are expected to lose about $1.4b in 2023 or about $4.92 per passenger. Those numbers starkly contrast with IATA’s expected net revenue of $9.8b globally (or about $2.25 per passenger). The North American carriers will have the best financial performance in 2023. IATA expects them to record a net profit of $11.5b. European airlines will profit $5.1b, and Middle Eastern carriers will get $2.0b. In contrast, African airlines will lose about $500m, Latin American airlines $1.4b, and Asia-Pacific carriers $6.9b.<br/>

Mexico proposes handing control of capital airport to its navy

Mexico is likely to hand over control of the capital’s main airport - the busiest in the country - to its navy, according to a draft decree published on Tuesday, in what would be the latest step increasing the military’s role in the sector. President Andres Manuel Lopez Obrador has touted the armed forces’ involvement in aviation, arguing it has reduced drug trafficking and smuggling out of airports. The Mexico City International Airport (AICM) currently sits under the transportation ministry, though the navy has already taken over security operations, including customs. Former navy pilot Carlos Velazquez was appointed as its top director last year. “There’s more security, more certainty, the rules are followed better, there’s more discipline,” with the navy in charge of the airport, Velazquez told reporters on Tuesday. The draft decree must be published in Mexico’s official gazette to take effect. Velazquez said that authorities were working to make sure the AICM, also known as Benito Juarez, would be able to take advantage of the funds generated from the airport-use tax. The money currently goes to a fund to pay off bondholders who financed the construction of an airport canceled by Lopez Obrador in favor of building the Felipe Angeles airport on the outskirts of the capital. The little-used, one-year-old Felipe Angeles airport, one of the president’s largest public works projects, is also on an active military base.<br/>

European airports back in profit but ACI warns about fundamentals

While European airports today confirmed they returned to the black in 2022 for the first time in three years, pressure on future funding remains of concern amid increased debt and slower traffic growth. At its annual meeting in Barcelona on 27 June, Airports Council International (ACI) Europe disclosed that airports in the region made a net profit of E6.4b last year. That was despite passenger traffic remaining more than a fifth down on pre-Covid levels in Europe. While it marked a welcome return to profit for European airports after €E0b in losses accumulated during the pandemic, ACI Europe director general Olivier Jankovec said the financial situation remains challenging. “For European airports it is about finally turning the corner from Covid, being back in the black, posting a net profit which is very welcome,” Jankovec said during a press conference in Barcelona. ACI says the profit was driven by airports delivering cost efficiencies and by cutting planned investments, noting capital expenditures were down E5.5b. “It’s still difficult because traffic performance is very diverse and we are carrying a significant amount of debt from Covid, and that means, moving forward, a bigger part of the revenue… will have to service that debt,” he adds. ACI Europe estimates that debt and liabilities are still E47b higher than before the pandemic.<br/>

Russian civil aviation regulator grants life extension to An-148

Russia’s federal air transport regulator has granted life-extension approval for the Antonov An-148 regional twinjet, increasing it from 10 to 30 years. Rosaviatsia says the work to extend the type’s life has been conducted in “strict accordance” with regulations and international practice. The An-148 was originally developed by Ukrainian design bureau Antonov, and – under a previous co-operation programme – several airframes were assembled at a Russian plant in Voronezh. While Antonov is the type certificate holder, the deterioration in Ukrainian-Russian relations – which preceded the current conflict – meant joint work on the programme stalled. Rosaviatsia says it issued the supplementary certification on 21 June, following work carried out by the Ilyushin division of United Aircraft. “Results of the certification work allow the An-148, operated by several Russian airlines, to continue flying,” it states. Rosaviatsia says that Ilyushin has “strong competencies” as an aircraft developer, and that – as part of the effort – the An-148 was assessed under an aging-control programme, with an evaluation of previous work undertaken by Antonov.<br/>

AAPA urges ‘disciplined’ cost control amid positive outlook

The Association of Asia Pacific Airlines (AAPA) has continued to warn of inflationary pressures on the region’s carriers, even amid strong passenger traffic recovery in recent months. The association’s director general Subhas Menon says that airlines are focused on “disciplined cost management throughout the business”, while noting that an easing of fuel prices has some relief to operating expenses. He says: “Overall, the outlook for the airlines remains positive, with the recent moderation in oil prices providing some relief to operating expenditure even though the industry will continue to face inflationary cost pressures.” His comments come as the region’s carriers see continued growth in passenger numbers in May, about a year since most Asia-Pacific markets eased most of their pandemic restrictions. The region’s carriers flew about 21.4m passengers in May, more than twice the numbers year on year. Similarly, capacity and traffic both doubled year on year, with traffic growth outpacing that of capacity, leading to a 5.9 percentage point jump in load factors to 77.9%. Notes Menon: “Strong travel appetite continued to spur recovery in passenger demand which grew by nearly three times in May, with both premium and leisure segments on the rise.” Meanwhile, air cargo traffic in May was “adversely impacted” by weakened demand, with freight-tonne kilometres falling 7% year on year. This contrasted with a 6% rise in capacity, leading to a 8.5% drop in cargo load factors. AAPA says the weak cargo performance is likely to carry on for some time. “Trade tensions are likely to weigh down on cargo markets for some time to come whereas air travel demand is expected to demonstrate resilience in spite of the headwinds in the external environment,” says Menon.<br/>

Boeing’s main 737 supplier, union forge agreement to end strike

Spirit AeroSystems Holdings Inc. and leaders of its largest union reached an agreement on a new contract, aiming to end a strike that’s halted its production and pressured customers Boeing and Airbus. The latest terms sweeten management’s previous offer on health insurance and increased wages. It also includes a limit on mandatory overtime, which had been a sticking point for striking workers. The International Association of Machinists and Aerospace Workers urged its rank-and-file members to ratify the proposed four-year deal during a vote on June 29. Workers had rejected an earlier agreement, bucking union leaders, then overwhelmingly approved a strike. If union members approve the tentative agreement, Spirit would speedily resolve a dispute that’s threatened output of Boeing’s 737 Max, a cashcow aircraft that’s critical to both Spirit and the aircraft maker. Shares of both companies rose after the close of regular trading in New York. “We listened closely and worked hard in our talks over the last several days to further understand and address the priorities of our IAM-represented employees,” Tom Gentile, Spirit’s CE officer, said Tuesday.<br/>

Embraer lags in orders at Paris Airshow, but longer-term recovery seen

Investors were left disappointed by weaker-than-expected order numbers for Brazil’s Embraer at the world’s largest airshow last week, though some analysts were heartened by a bid from China and interest in Embraer’s electric aircraft unit. The world’s third-largest aircraft maker after Airbus and Boeing, Embraer bagged 13 fresh orders for commercial jets at the Paris Airshow, falling short of market estimates and previous years’ levels. That led shares in the company to fall roughly 18% in a week, reversing the 11% gain realized in the days ahead of the show, when market players seemed excited by the prospects of new deals. The 13 new orders compared with 74 secured at Le Bourget in 2019 and 28 in Farnborough last year. They also lagged some upbeat market forecasts, including expectations by JPMorgan analysts for at least 30 orders. The US bank said in a note to clients on Tuesday that it hosted Embraer for a webinar and the company acknowledged the low number of orders announced, but said it was in line with its strategy to preserve margins and profitability. “Embraer continues to hold talks with several airlines, both in the US and abroad, and expects to announce more new orders in the midterm,” JPMorgan said as it reiterated its “overweight” rating on the firm. In Paris, investors were especially disappointed by the lack of orders from the booming Indian airline market, which handled an all-time-high 500-plane transaction to Airbus and new orders to Boeing.<br/>