general

Global airline passenger traffic was at 96.1% of 2019 levels in May this year, as the industry neared parity with pre-Covid levels of demand after three years of deficit. The latest data from airline industry association IATA continues to reflect the rapid recovery trend seen this year, with traffic having been at 76.9% of 2019 levels as 2022 ended. Measured in revenue passenger kilometres (RPKs), traffic in global domestic markets was 5.3% above 2019 levels in May – outpacing pre-pandemic data for the second month in a row – with international traffic at 90.8% of pre-Covid levels. The latter metric has risen sharply since the turn of the year, thanks to the reopening of the key China market. Still, Asia-Pacific carriers continue to lag pre-crisis RPKs the most, at 15% down in May (albeit that number had been -43.5% as recently as December 2022). In contrast, Middle Eastern carriers saw their RPKs surge to 16.2% above 2019 levels in May, IATA data shows. That is, however, partly explained by runway closures at Dubai International airport in May 2019, which restricted flights and therefore artificially inflate the 2023 comparison. Middle Eastern carrier RPKs had been 12.1% down versus pre-Covid levels in April. North American carriers also saw traffic above pre-crisis levels, at 2.1% up in May, in a more reliable reflection of recent recovery trends. <br/>

Mexico's armed forces are taking control of the capital's main airport, and the government plans to give the military control of nearly a dozen more across the country as the president takes aim at corruption and mismanagement. President Andrés Manuel López Obrador has been setting the armed forces to a wide range of nontraditional tasks since he was elected in 2018, creating concerns about the separation of the military from civilian life. A new airport was built by the army outside Mexico City a year ago at a cost of $4.1b US. It is run by the military but little used. López Obrador says the old airport, the country's busiest, will be run by the navy. More than 1.8m Canadians travelled to Mexico in 2022, according to Statistics Canada. The navy took charge of security at Mexico City International Airport, or Benito Juárez, more than a year ago. It will soon have control of everything else, from customs and immigration to handling luggage and cleaning bathrooms, with the imminent publication of a presidential order to make that official. The list of problems at Mexico City Airport has long included major drug shipments and illegal migration. Infrastructure was in disrepair, and a number of close calls were reported on the runways in recent years as the airport increasingly had trouble handling flights. The airport also had a reputation for stolen luggage, mismanaged airline schedules, business without contracts and corruption. Meanwhile, López Obrador has gone to the armed forces for help throughout his term, giving them some immigration duties and control of ports and customs. Its members are also building major infrastructure projects, such as a tourist train through the Yucatan Peninsula and a new airport in the same area. They even run plant nurseries and tourist trips to a former penal colony.<br/>

European flights during the summer holiday period could be affected by strike action by air traffic managers. Eurocontrol, which manages flights over Europe, has said one of its unions could take industrial action, although no dates have been announced yet. Negotiations are continuing with the union and other unions, Eurocontrol said. Industry group Airlines UK urged Eurocontrol "to reach agreement as soon as possible". Another industry body, Airlines for Europe, said the possible impact of any strike action "remains to be determined". Eurocontrol said it was "making every effort to keep negotiations open and to find a constructive way forward". One of its trade unions, Union Syndicale Bruxelles, has "announced a period of six months during which industrial action could take place". It said the action could affect its Network Manager Operations Centre, which handles more than 10m flights a year. Prior to the pandemic, it had daily peaks managing more than 37,000 flights, and Eurocontrol said the centre played a pivotal role in managing, streamlining and improving air traffic. Eurocontrol stressed that it was in "ongoing dialogue" with the union. "As no notice of specific industrial action has been received, it is premature to speculate on any potential impact," it said. Airlines for Europe said any strike action would not affect Eurocontrol's air traffic control services and "therefore its impact on passengers could be limited". The BBC has approached Union Syndicale Bruxelles for comment. Aviation in Europe is facing a particular set of challenges this summer. Demand for flights is returning to pre-Covid pandemic levels, and European airspace is being constricted by Russia's war in Ukraine. But there is a shortage of air traffic controllers, and some strikes are already planned - for example, there is an air traffic strike in Italy on Saturday 15 July.<br/>

The Dutch government has won a legal battle to reduce the number of flights at Amsterdam’s Schiphol airport, in a blow to the airline industry which fought against the rare attempt to curb air traffic on environmental grounds. An appeals court on Friday ruled that The Hague can reduce the number of flights at the airport between the end of the year and October 2024, over-ruling a local court. The move is the most drastic yet in the EU to tackle noise and pollution caused by the aviation industry, and was challenged by carriers including KLM, easyJet, Tui and Delta. The government is seeking to reduce flight numbers by 8% to 460,000 a year at one of Europe’s busiest hubs. The case rested on the impact of flying on the local community, including aircraft noise and nitrogen dioxide emissions. The aviation industry faces increasing scrutiny of its wider environmental impact and senior executives watched with alarm the Dutch government’s efforts to curb flying through legislation. Two senior industry executives said they feared the Dutch ruling could be the start of wider moves to constrain growth in flying in Europe, which has bounced back strongly from the coronavirus pandemic. Schiphol, which is majority owned by the state, has said it is willing to sacrifice growth in order to become “quieter, cleaner and better”, and has announced plans to consult with airlines on a ban on night flights and private jets and a reversal of plans to build an additional runway. It is the EU’s third biggest airport and served 53mn passengers in 2022, connecting 313 destinations. But the government is under pressure to reduce nitrate emissions and pollution in the densely-packed country. The Dutch ministry of infrastructure said the ruling represented “an important step in achieving a new balance between the economic importance of an internationally well-connected airport on the one hand, and the interests of residents and the environment on the other hand”. Elsewhere in Europe, the French government has implemented a partial ban on short-haul domestic flights, but there are few other examples of attempts to limit the growth of flying. Airlines and airports have argued that flying can reach net zero carbon emissions by 2050 while still growing, chiefly by turning to alternative fuels that emit less carbon than jet fuel.<br/>

Commercial flights between Italy and conflict-torn Libya will resume in September after the Italian government agreed to lift a 10-year-long ban on civil aviation in the North African nation, one of Libya’s rival governments said Sunday. Abdul-Hamid Dbeibah, prime minister of the Tripoli-based government, said on Twitter that the Italian government of Prime Minister Giorgia Meloni informed his government of the decision. He called the removal of the ban a “breakthrough.” The decision came after Libyan and Italian aviation officials met Sunday in the Libyan capital of Tripoli to discuss “the upcoming restoration of direct flights and the strengthening of cooperation” between the two countries, according to a statement from the Italian Embassy in Libya. Oil-rich Libya plunged into chaos after a NATO-backed uprising toppled and killed longtime dictator Moammar Gadhafi in 2011. In the disarray that followed, the country split into rival administrations in the east and west, each backed by rogue militias and foreign governments. Italy and other European countries banned Libyan flights from their airspace as the country descended into chaos. Over the past decade, Libya has had direct flights to limited destinations, including cities in neighboring Egypt and Tunisia, and other Middle Eastern countries, such as Jordan. A Libyan government statement said the two countries have agreed that one airliner from each country would operate flights starting in September. They did not name the destination cities.<br/>

Ireland’s aviation sector watchdog last year obtained E348,000 in refunds and compensation for disgruntled air passengers. The annual report of the Commission for Aviation Regulation (CAR) says it received 2,302 valid complaints about airlines, with long delays and cancellations making up the vast bulk of the complaints at 1,043 and 1,178 respectively. Valid complaints jumped 55% in a year when the airline industry made a strong return after Covid-19 shutdowns. By January 30th of this year 600 of these valid complaints have been concluded, with 567 upheld. More than E120,000 was obtained in refunds following CAR intervention and more than E228,000 in compensation was awarded to passengers in respect of the 567 upheld complaints. The two biggest airline operators in Ireland, Aer Lingus and Ryanair, accounted for 66% of complaints made in 2022, with 1,253 complaints made against Aer Lingus and 830 against Ryanair. Of the Aer Lingus complaints 146 were upheld, 297 were not sustained and investigations are ongoing in 810 cases. On Ryanair 161 complaints were upheld, 224 were not sustained and investigations continue on 445. In relation to recurring complaints from people with reduced mobility, the report says that during 2022 “after ongoing discussions and on foot of complaints received in previous years, we obtained a commitment from Aer Lingus to retrofit over 100 aircraft to ensure that on- board wheelchairs are available on most of their passenger flights. This is a very positive step towards greater accessibility.”<br/>

Some of the world’s largest aircraft owners, including AerCap and Carlyle Aviation Partners, which are pursuing claims against insurers for planes stranded in Russia, are preparing to step up their fight against the cases being heard in Moscow. AerCap, the world’s largest aircraft lessor, and others believe they have valid claims for the loss of their aircraft and engines that they have been unable to recover from Russian airlines in the wake of the invasion of Ukraine last year. Although the western lessors terminated the leases on the aircraft after sanctions were imposed on Moscow, the carriers have refused to hand over the planes and are continuing to fly them. More than 500 aircraft, worth an estimated $10b, were stuck in Russia at the time sanctions were imposed. Lessors managed to retrieve some of the planes but around 400 are still in the country and the companies subsequently lodged insurance claims last year. A London High Court judge on Friday ruled to combine claims for ten lessors, including AerCap, Carlyle, Avenue Capital and Merx Aviation, against several insurers, including AIG, into one combined hearing to be held in February next year. The hearing will now determine the issue of jurisdiction. Russian airlines that leased the aircraft had insured them with domestic companies which then reinsured the risk with western insurers. Those insurers have maintained that as the original contracts were agreed under Russian law, the cases should be heard in Moscow. The lessors have argued that taking their cases to Russia is impractical given the continuing conflict with Ukraine. In a written submission presented in court on Friday, AerCap noted that challenges around the jurisdiction would focus on whether, “even if the exclusive Russian jurisdiction clauses apply, the English court should exercise its discretion to allow the claims to proceed in England in any event, on the basis that there is a real risk that it will not be possible for the parties to obtain a just determination [of the claims] in Russia”. Carlyle Aviation Partners similarly argued in its submission that “there are strong reasons why the court should not enforce those [jurisdiction] agreements, namely that the claimants would not receive a fair trial in Russia and/or that it would be against public policy to give effect to the alleged agreements”.<br/>

Chinese airlines have upped the number of weekly flights to Spain by more than five times since the end of China's zero-COVID policy in December, filling most of the gap left by European rivals due to a ban on flying over Russia. "We've managed to restore 60% of the direct connections (with China) we had before the pandemic, and we hope to increase this figure by year-end and close the gap next year," Miguel Sanz, general director of Spain's tourism board Turespana, told Reuters. Air China, China Eastern Airlines, Cathay Pacific and Hainan Airlines have in the past four months launched a total of 16 weekly flights to Madrid and Barcelona from Beijing, Shanghai, Hong Kong and Chongqing, according to Turespana. In late 2022, Chinese airlines operated only three flights. Shenzhen Airlines is preparing to launch three flights to Barcelona, and another airline Sanz would not identify is considering connecting a Chinese city with southern Spain. Airlines, including European ones, used to operate 30 weekly flights during the high season between China and Spain before the pandemic. Spain received 700,000 Chinese visitors in 2019. This year's numbers are not yet available. Unable to fly through Russian airspace because of the war in Ukraine, IAG's Spanish unit Iberia has not resumed its Shanghai connection as alternative routes are too costly.<br/>

Incheon International Airport Corp. will release a mobile app, Monday, enabling travelers to register their faces in order to hasten departure procedures. The system will eliminate the need for people using the app to present passports or boarding passes. The operator of the country's largest airport will officially begin the facial recognition service at the end of this month. Those who want to use the service can download the ICN Smartpass app from Apple's App Store or the Google Play store, and register the necessary information. The IIAC said many airports around the world have already introduced non-face-to-face services following the COVID-19 pandemic, noting that Hartsfield-Jackson Atlanta International Airport, Singapore Changi Airport and Tokyo's Narita International Airport use facial recognition as an identification method. A survey announced last year by the IATA showed that 88% of respondents were satisfied with procedures using their biometric information at airports, and 75% preferred the use of the biometric information to passports or boarding passes.<br/>

Two years after the world's largest jetliner rolled out of its Toulouse factory for the last time, Airbus is preparing to bring some A380 superjumbos back to their birthplace for wing inspections even as it re-dedicates the plant to smaller jets. A380 production stopped in 2021 and part of the giant Jean-Luc Lagardere assembly hall has been redeployed as an assembly line for the single-aisle A321neo, to be inaugurated on Monday. But elsewhere in the colossal plant, Airbus is preparing to welcome back some A380s from the largest customer, Emirates, for inspection and possible repairs after accelerated cracking was detected in some wing spars of jets stored during the pandemic. Work on a dedicated "A380 Emirates" inspection facility in the building began in December and the project is due to run until third quarter 2024, according to Force Ouvriere union. Airbus has agreed to pay special bonuses to workers on the project starting in September, backdated to the end of last year, it said in a notice giving the first detailed indication of the duration of the repair project. "We are supporting inspections on some aircraft in Toulouse," an Airbus spokesperson said. Emirates, which has said the problem does not represent an immediate safety issue, said there would be minimal impact to its operations from the inspection and repair programme which is based on specified time limits since each wing was installed.<br/>

Record demand from India sharply increased Airbus (AIR.PA) orders in June to leave the European planemaker with 1,044 net orders in the first half of the year, data showed on Friday. In a bulletin, Airbus officially booked orders for 500 jets from budget carrier IndiGo and 250 from Air India that were announced or finalised at last month's Paris Airshow. Efforts by Indian airlines to keep pace with the world's fastest-growing aviation market, serving the largest population, have sent industry records tumbling even though manufacturers are struggling to meet output goals due to supply chain snags. Airbus gross orders before cancellations stood at 1,080 aircraft in the first half. Airbus said it had delivered 316 jets during the period, confirming a Reuters report. By comparison, Airbus won 442 orders or a net total of 259 after cancellations in the first half of 2022. It delivered an unadjusted total of 297 jets. Airbus is targeting 720 deliveries this year. For January to May, the latest period for which data is available, Boeing won 223 gross orders, or a net total of 127 after cancellations, and delivered 206 airplanes. Both planemakers report mid-year results on July 26. Boeing's upcoming monthly order figures are also due to reflect heavy demand from India, after it finalised an order for 220 jets from Air India at the Paris Airshow.<br/>

US private equity firm 777 Partners has said it is in talks with Boeing and Franco-Italian turboprop maker ATR over a new jet order, as it looks to enter more markets amid a boom in air travel. "We've been in discussions with the (aircraft) manufacturers. I think right now the big issue with ordering jets is when you're going to receive them," 777 Managing Partner Josh Wander told Reuters in an interview on Thursday, without disclosing specific numbers. The talks come amid a rush for planes by airlines eager to tap into a greater-than-expected recovery in air travel. Miami-based 777, which invests its founders' money rather than seeking funds from other investors and has about $10b in assets under management, had finalized orders for 60 aircraft in its portfolio. "777 is in discussions with ATR on an additional opportunity that includes aircraft, technology and airline services and if firmed up would put the committed aircraft purchase agreements into the triple digits," the firm said in a statement. Boeing said it had no comment and ATR was not immediately available for comment. Earlier this year, Air India placed an order for 470 jets with Boeing and Airbus - which was later eclipsed by rival IndiGo's order for 500 Airbus planes. Wander said the company is also looking at investments in Asia and South America and is close to striking a deal to invest in a South African carrier, whose name he did not reveal.<br/>