general

House and Senate negotiate bill to help FAA add more air traffic controllers and safety inspector

Congressional negotiators have agreed on a $105b bill designed to improve the safety of air travel after a series of close calls between planes at the nation’s airports. House and Senate lawmakers said Monday that the bill will increase the number of air traffic controllers and require the Federal Aviation Administration to use new technology designed to prevent collisions between planes on runways. Lawmakers agreed to prohibit airlines from charging extra for families to sit together, and they tripled maximum fines for airlines that violate consumer laws. However, they left out other consumer protections proposed by the Biden administration. The bill was negotiated by Republicans and Democrats who lead the House and Senate committees overseeing the FAA, which has been under scrutiny since it approved Boeing jets that were quickly involved in two deadly crashes in 2018 and 2019. The legislation will govern FAA operations for the next five years. The Senate could vote on the 1,069-page measure as early as next week, but it could be delayed if senators try to attach unrelated bills. FAA is operating under a temporary authorization that expires May 10, and Congress might need to pass another extension. The House approved its version of the bill last year, but a Senate committee approved a different version in February after fights over several provisions, including ones dealing with the training and retirement age of pilots. In the end, negotiators dropped a House provision raising the mandatory retirement age for airline pilots to 67; it will remain at 65. Both chambers had already sidestepped a highly charged issue by narrowly rejecting a proposal backed by small airlines to let aspiring pilots count more time spent in simulators instead of flying planes toward reaching minimum experience standards.<br/>

Airline caterer Gate Gourmet reaches tentative deal with striking workers

Airline caterer Gate Gourmet has reached a tentative agreement with food service workers nearly two weeks after they walked off the job, meaning travellers through Toronto may soon find a full menu option on flights once again. A ratification vote will take place throughout Monday and if workers approve the collective agreement, Teamsters Canada said employees will be back on the job Tuesday. About 800 catering workers at Toronto's Pearson airport went on strike on April 16, leaving thousands of passengers without meals. The employees cook, package and deliver food and drinks to planes for service on board, with Air Canada and WestJet having to limit meal offerings after the job action. The tentative agreement comes after Ontario mediators called the picketing workers back to the table Friday for talks with the Swiss-owned Gate Gourmet. The company declined to comment on the development Monday morning. When the strike kicked off, Air Canada said short-haul flights would be most affected. Economy-class customers on flights under two hours would receive a pretzel or cookie along with water, while those in business class would not enjoy their usual hot meal service, the airline said. WestJet said two weeks ago that flights operating through Pearson on Boeing 737 planes — the vast majority of its fleet — may experience "an inconsistent food or beverage offering." Gate Gourmet is the largest airline catering company operating out of Toronto, with clients that include Air Canada, WestJet, United Airlines and Delta Air Lines. Owned by Gategroup, it operates in more than 135 locations in 33 countries, according to its website. Those figures include eight airports in Canada. Details of the tentative deal — finalized by negotiators over the weekend — were being withheld from the public until workers had a chance to see them, the union said Sunday night.<br/>

Stansted and Birmingham airport passengers hit by long delays due to technical issues

Passengers at two of the UK’s busiest airports have experienced long delays due to technical issues – with flights this evening still affected. London Stansted, Britain’s fourth-busiest airport, “experienced a partial power outage” on Monday morning. It affected check-in, security and baggage systems. Some Jet2 departures to Turkey, Spain and Portugal were over two hours late, as was a Tui flight to Las Palmas and Ryanair to Kos. Inbound flights from the affected destinations are also delayed, with a Jet2 flight from Lanzarote now expected at 9.30pm rather than 7.30pm. The Ryanair flight from Kos back to Stansted is estimated to be three hours late. Passengers will not qualify for delay compensation since the cause was beyond the airlines’ control. A spokesperson for Stansted said: “Power is now restored, and our teams are working hard to get systems back up and running as quickly as possible. “However, it is taking slightly longer than usual for passengers to pass through the terminal while systems recover. Flights are operating as normal, but passengers are advised to allow plenty of time for their travel and check with their airline for the most up-to-date flight information. “We apologies to passengers for the inconvenience and disruption to the journeys today.” Passengers at Birmingham airport, meanwhile. experienced long waits for security checks – with some missing flights.<br/>

Indonesia's Ruang volcano erupts again, alert status at highest

Indonesia's Ruang volcano off the island of Sulawesi erupted on Tuesday, spewing ash and lava, after an eruption earlier this month led to hundreds of evacuations and an airport closure. The country's Center for Volcanology and Geological Hazard Mitigation (PVMBG) raised the alert level to the highest following the morning eruption, urging residents not to get near the volcano, according to its website. The island of Ruang in the province of North Sulawesi is home to more than 800 residents, most of whom have been evacuated following the eruption earlier this month. It was not immediately clear how many more were evacuated on Tuesday. The country's disaster mitigation agency did not immediately respond to a request for comment. Footage on social media on Tuesday, which Reuters could not immediately authenticate, showed lava flowing down the volcano, which is about 100 km (62 miles) from the provincial capital Manado. Transport authorities temporarily closed Manado's airport after the eruption earlier this month, while falling rocks and ash damaged homes and forced a nearby hospital to evacuate. Authorities downgraded the status level to level 3 last week before bumping it up again to level 4 on Tuesday. Indonesia straddles the so-called "Pacific Ring of Fire," an area of high seismic activity where multiple tectonic plates meet.<br/>

Boeing taps debt market to raise $10b, sources say

Boeing Monday tapped debt markets to raise $10b, after the US planemaker burned $3.93b in free cash during Q1 as production of its best-selling jet declined, sources familiar with the matter said. Boeing shares rose 3.4% after the successful sale. Ratings agencies last week slashed the outlook on Boeing's credit to just above "junk" status. On Monday, both assigned ratings nearing junk to Boeing's new senior unsecured notes, with S&P assigning a BBB- rating and Moody's a Baa3 rating. Boeing has been dealing with heightened regulatory scrutiny and other fallout from a midair blowout of a cabin panel door plug on a nearly new 737 MAX 9 in January. The planemaker is carrying the burden of multiple sequential crises from deadly crashes of two 737 MAX jets to the deep slump in travel during the pandemic. Now a 737 MAX production shock first reported by Reuters has weakened its balance sheet and left it under a cumulative debt pile. Investors and analysts had predicted Boeing would tap bond markets to get ahead of more than $12b in combined debt coming due in 2025 and 2026. At the same time, US fixed income markets have seen a huge supply rush of new bonds in recent months as companies looked to capitalize on relentless demand from investors seeking to lock in higher yields in a year when the Federal Reserve is expected to start cutting interest rates. Moody's said the rating reflects Boeing's still-strong business profile, which continues to mitigate ongoing weak performance in commercial aircraft, although headwinds surrounding the division could persist through 2026.<br/>