Canadians are feeling the squeeze as airfare prices skyrocket, at a time when the airline industry is in Ottawa’s hot seat. According to the CAA, increased airfare prices are linked to heightened competition and rising food and fuel. Recently, one airline quietly added a new fee for travellers(opens in a new tab) who booked its lowest fares – seat selection – but walked it back following criticism from customers. While that fee was dropped, and some fares are actually down, additional costs(opens in a new tab) such as those for baggage and better seats, mean that even if the flight itself costs less, Canadians are often paying more. For some travellers, costs are so high that they're relying on last-minute deals, and missing out if they can't find anything. Travellers are also grappling with frustrations around lengthy delays, with one traveller saying two to three hours can be "crushing." Data published last week(opens in a new tab) showed air travel complaints in Canada hit a record high, with the Canadian Transportation Agency facing a backlog of more than 71,000, with approximately 43,550 complaints filed last year alone. In addition to criticism from travellers, airline executives find themselves under the scrutiny of a House of Commons committee. Airlines like Lynx Air, which filed for protection from its creditors, and Air Canada, which reported an $81m loss in its first quarter, are among the Canadian companies struggling to balance economic viability with the need to address the issues faced by travellers. Mechanisms like Air Passenger Bill of Rights are meant to address the growing call for accountability, CAA’s Julia Kent said.<br/>
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Brazil’s President Luiz Inacio Lula da Silva and key cabinet members arrived Sunday in the country’s south where record-breaking floods have shut-down a main airport and submerged neighborhoods, leaving dozens dead and many others missing. Heavy rains over the state of Rio Grande do Sul caused main rivers to overflow, straining damps and displacing more than 88,000 people in more than 330 municipalities. At least 75 have died and 103 are missing, according to the latest official report. Several neighborhoods of Porto Alegre, the most populated city in the region, are under water while its international airport announced on Firday night it would close for an undetermined amount of time. Companies that had announced they were suspending activities due to the heavy rains are now announcing they will resume their normal work on Monday. Landing in Rio Grande do Sul for the second time this week, President Lula was to met with state Governor Eduardo Leite, according to social media posts. Leite is calling for federal aid to rebuild the infrastructure of his region, saying the effort needed compares to the billions of dollars spent by the US government after World War II. President Lula toured the flooded areas and held a press conference surrounded by several members of his cabinet, including Finance Minister Fernando Haddad and Chief of Staff Rui Costa, along with leaders of congress and members of the country’s justice courts. “This is a very important state in Brazil,” said Lula, who pledged federal aid to rebuild roads. Rio Grande do Sul is one of the key states for agriculture, a main driver for the country’s better than expected economic performance last year. “It’s time for Brazil to give back and help Rio Grande do Sul,” he said. <br/>
Regulators could limit airlines at Dublin Airport to carrying 14.4m passengers this winter to ensure traffic remains within a controversial cap. Planners have restricted Ireland’s biggest airport to 32 million passengers a year as a condition of allowing it to operate its north runway, which opened in 2022. The Irish Aviation Authority (IAA) is considering limiting airlines operating at the airport to a maximum of 14.4 million seats from October 27th next to March 29th, 2025 to ensure the cap is not breached. The IAA confirmed on Friday it has proposed introducing the winter-time limit in a draft decision recently published, to “take account of planning conditions relating to the annual capacity of terminals one and two at Dublin Airport”. If it decides to do so, the authority added, this would be the first time it has imposed a seat limit on airlines operating at Dublin Airport. The authority, responsible for setting limits that determine the allocation of take-off and landing slots to airlines at Dublin Airport, is thought likely to announce its decision on Tuesday.<br/>
Forty flights have been canceled on the southern resort island of Jeju due to adverse weather conditions, officials said Sunday. According to officials from Jeju International Airport, 20 arrivals and 20 departures had been canceled as of noon. Strong wind warnings have been issued for the island, with an advisory for wind shear also in effect at the airport. The Korea Meteorological Administration (KMA) asked air passengers to check their flight schedules in advance as the bad weather is expected to affect Jeju Island until Tuesday morning. Meanwhile, rain was falling across much of the country as of 2 p.m., with gusty wind, thunder and lightning in some places, according to the weather agency.<br/>
Heavy rain prompted flood warnings for large parts of Singapore on the morning of May 4, and caused delays at Changi Airport and at the LIV Golf tournament on Sentosa. At about 10.35am, PUB posted a flood alert on social media platform X that heavy rain was expected over “many areas of Singapore” from 10.35am to 11.20am. It was the latest in a series of posts that began at 6.27am alerting the public about the inclement weather. The national water agency also urged the public to avoid certain roads such as TPE (Punggol West Flyover) and Jalan Pokok Serunai in Bedok because of heavy rain, and issued flash flood alerts for several areas, including Upper Paya Lebar Service Road (from Lim Teck Boo Road to Rochdale Road) and Craig Road from Duxton Road to Tanjong Pagar Road. At Changi Airport, 27 flights out of Singapore were delayed, while passengers on 24 arriving flights experienced baggage handling disruptions. Changi Airport Group said issues were resolved after the wet weather subsided.<br/>
Boeing has locked out its private force of firefighters who protect its aircraft-manufacturing plants in the Seattle area and brought in replacements after the latest round of negotiations with the firefighters’ union failed to deliver an agreement on wages. The company said Saturday that it locked out about 125 firefighters and a facility about 170 miles away in central Washington. The firefighters serve as first responders to fires and medical emergencies and can call in help from local fire departments. “Despite extensive discussions through an impartial federal mediator, we did not reach an agreement with the union,” Boeing said in a statement. “We have now locked out members of the bargaining unit and fully implemented our contingency plan with highly qualified firefighters performing the work of (union) members.” In a statement Saturday, the International Association of Firefighters union said Boeing’s lockout is intended to “punish, intimidate and coerce its firefighters into accepting a contract that undervalues their work.” “Putting corporate greed over safety, Boeing has decided to lockout our members and the safety of the Washington facilities has been needlessly put at risk,” said Edward Kelly, the IAFF’s general president.<br/>
Boeing investors should vote against CE David Calhoun’s $32.8m pay package, shareholder adviser ISS has said, in the latest blow to the aircraft maker after a mid-air door plug blow out in January on one of its planes. In a report released late on Friday night, Institutional Shareholder Services said Calhoun’s 45% year-on-year pay increase should be rejected by investors at Boeing’s May 17 annual meeting. Calhoun’s pay jumped even though he did not get an annual cash bonus for 2023. However, Boeing’s board “significantly increased” his long-term bonuses for the third straight year, ISS said. The board’s rationale was not “particularly compelling for such a significant increase, especially given two other recent increases since Calhoun became CEO in 2020”, said ISS, which is the largest shareholder advisory firm. Calhoun, 66, said in March he would step down at the end of the year and a succession process was under way. The board also gave Calhoun a large share grant that pays out over a relatively short period, ISS said. While this grant was meant to match shares Calhoun purchased in late 2022, “many investors may question this additional time-based grant, in combination with the significant increase in his long-term incentive award opportunity”, ISS said. Calhoun was also paid $514,285 for private jet flights, ISS noted, a total that “significantly exceeded” median pay for flights among CEs of S&P 500-listed companies. Boeing did not immediately respond to a request for comment on Saturday. The company’s share price closed at $179,79 on Friday, down 29% since the beginning of the year. In January, an Alaska Airlines Boeing 737 Max aircraft made an emergency landing after a door plug blew out during the flight. Boeing has been in upheaval since then. The Federal Aviation Administration has temporarily grounded some 737 Max aircraft. Last month Boeing said it had burnt through almost $4b of cash in Q1. It also paid $443m in compensation to aircraft customers after the Alaska Airlines blowout.<br/>
Few companies have lost more than the $32 billion that Boeing has lost in the last five years. And fewer companies could lose that kind of money and not be facing bankruptcy — or worse. That’s because the company is part of a unique duopoly, one of only two manufacturers of full-size passenger jets in high demand by airlines. That means it can continue to sell, build and deliver planes for many years to come, even with massive and well-documented problems. “Given the dynamics of their place in the industry and the industry itself, they have the luxury of time,” said Richard Aboulafia, managing director at AeroDynamic Advisory, an aerospace and defense industry consultant. “It’s an industry with the highest possible barriers to entry and very strong demand for its products. But they’ve wasted a lot of that time.” Boeing, despite its many woes, has a backlog of orders for more 5,600 commercial jets, worth $529b. That’s years’ worth of orders. The problem is that Boeing has reduced its pace so much to address quality issues, it can’t make enough planes a year to turn a profit. “Can the current situation go on forever? No, it can’t,” said Ron Epstein, aerospace analyst for Bank of America. “That being said, they have some leeway. They’re not going to be in trouble tomorrow.”<br/>