John F. Kennedy International Airport is seeking funds to help it build its New Terminal One, making it the latest facility to tap investors amid an airport bond boom. Next week, the group behind the public-private partnership running the project will offer debt to refinance part of the $6.6b bank loan taken out in 2022 for the development. In November, $1.5b in bonds were offered to start taking down the facility, and upsized the deal to $2 billion to meet demand. When that debt trades, which isn’t often, it does so at premium prices. The New York hub joins facilities from coast to coast that are raising money to pay for much-needed repairs. US airports need $151b in infrastructure upgrades through 2027, according to Airports Council International-North America. The deal adds to a muni supply wave that’s jumped by more than a third over last year’s pace to $205b. Moody’s Ratings and Fitch Ratings have assigned the deal a grade just one level above junk status, though the demand prospects for air travel mitigate some concerns about costs and complexity. “With barely an investment grade rating at BBB- this shows the upfront risk and debt involved in these massive terminal projects,” said Byron Anderson, head of fixed income at Laffer Tengler Investments, in an email. “The good news is that JFK is one of the busiest airports in the US and demand should stay high.” <br/>
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Europe will need to invest more into synthetic aviation fuels if it hopes to meet its net zero targets and decarbonise aviation by 2050 as it can't only rely on biofuel, according to industry leaders, with many asking governments to provide more help. Biofuel-based sustainable aviation fuel (SAF), made from materials like used cooking oil or wood chips, could reduce aviation emissions by up to 80%, according to government and industry officials, and is seen as the key green solution for the sector. But there is a shortage of feedstocks to produce enough of the fuel from organic materials. Investment into pricier synthetic fuels made out of hydrogen or carbon capture, known as e-SAFs, is needed to ensure Europe can meet its green goals. Only a handful of refineries produce e-SAF, which is considered to be even cleaner than biofuel-based SAF, and very few airlines have committed to purchasing it. "We definitely need e-SAF to bring the amount on the market which is required for the blending mandates first and then later on for 2050 to fly each and every aircraft with SAF," Uwe Gaudig told Reuters, who works on SAF projects for engineering firm Griesemann group in Germany. SAF makes up only 0.2% of global jet fuel use with most of it made using organic feedstock-based biofuels. One of the reasons for the slow uptake is price - biofuel-based SAF costs between three to five times more than traditional jet fuel.<br/>
Heathrow has recorded its highest passenger total for a 12-month period. The west London airport said 81.5m passengers travelled through its terminals in the year to the end of May, up from 71.6m during the previous year. Double-digit year-on-year percentage growth in passengers was recorded for routes connecting Heathrow with other parts of the UK and Europe, as well as North America and the Asia/Pacific region. The airport had its busiest-ever May with 7.2m passengers, compared with 6.7m in the same month last year. Last year, the aviation regulator found the airport failed to meet minimum standards for disabled passengers over the previous 12 months. Heathrow CE Thomas Woldbye said: "We have a winning team at Heathrow which has proven that we have put Covid firmly behind us. "Thanks to their extraordinary efforts we are now giving record numbers of people the chance to connect smoothly with the world."<br/>
Water cascaded from the ceiling and planes were grounded on flooded runways at the airport of Palma, the capital of the Spanish island of Mallorca, as heavy rains swept over the popular tourist destination on Tuesday. The storm brought all activity to a halt at Son Sant Joan airport, Spain's third-biggest, due to the "impossibility of operating safely", operator Aena said in a statement. The airport activated its emergency plan and flights to Mallorca were temporarily re-routed to alternative airports, Transport Minister Oscar Puente said. Puente later said on social messaging platform X that the airport was resuming operations as the rain subsided. National weather agency AEMET said its station at the airport recorded rainfall of nearly 5 centimetres per hour, with peaks of up to 9 cm in less than an hour. Videos posted on X appeared to show water streaming from the ceiling of the airport's shopping area, travellers in summer clothes drenched by water leaking through the windows and seeping out of buckets placed underneath. Others featured cars struggling to traverse a flooded parking lot. Passenger traffic at Palma de Mallorca airport last year reached 31.1m, an all-time record. The Mediterranean island, known for its picturesque beaches and sunny weather, is one of Europe's most visited destinations, especially popular with German and British tourists.<br/>
Some of the world's largest aircraft lessors faced off against their insurers in a Dublin courtroom on Tuesday at the start of a months-long battle over around E2.5b of insurance claims related to jets stranded in Russia. Lessors are suing dozens of insurers around the world over losses of at least $8b after more than 400 planes were prevented from leaving Russia when Western sanctions over Moscow's war in Ukraine forced the termination of their leases. The world's second and third largest lessors, SMBC and Avolon, as well as BOC Aviation, CDB Aviation, Nordic Aviation Capital and Carlyle Aviation Partners, are pursuing their claims in Ireland, where more than 60% of the world's leased aircraft are owned or managed. Lloyd's of London, Chubb and Fidelis are among the insurers contesting the claims. Insurers are balking at payouts, with some alleging that there has not been a physical loss of the planes yet or that the planes are still in the course of being repossessed. Others have argued that lessors voluntarily ended leasing agreements or that Western sanctions prevent insurers from providing cover.<br/>
Russia’s Yakovlev has commenced certification flight-testing of its prototype SJ-100, the import-substituted version of the Superjet 100. The testing is taking place at the Gromov institute near Moscow Zhukovsky airport. Five crew members were on board the twinjet for the 2.5h flight, which assessed 15 different modes and tested a domestic fuel system. While the prototype aircraft features a number of Russian-built systems in place of foreign-supplied equivalents, it currently retains the PowerJet SaM146 powerplants of its predecessor – a decision taken to advance the test schedule. Two additional prototypes will be fitted with the Aviadvigatel PD-8 engines to be used on serial production aircraft. Yakovlev general director Andrei Boginsky says the company aims to conduct about 200 flights by the end of next year. “These tests will allow us to ensure the safety of the millions of passengers who will board the SJ-100 in the coming years,” he says. Boginsky claims the company has secured customer interest covering some 150 aircraft, of which over 60 relate to airlines other than Aeroflot. Yakovlev says the SJ-100 has already undergone ground tests of its landing-gear, cockpit displays, flight-control surfaces, and doors.<br/>
Malawi's Vice President Saulos Klaus Chilima and nine others, including former first lady Shanil Dzimbiri, were killed when the military plane they were travelling in crashed, President Lazarus Chakwera said on Tuesday. The aircraft carrying Chilima, who was seen as a potential candidate in next year's presidential election, went missing on Monday. "I'm deeply saddened, I'm sorry to inform you all that it has turned out to be a terrible tragedy. The search and rescue team has found the aircraft near a hill. They have found it completely destroyed with no survivors," Chakwera said in an address to the nation. The plane left the capital Lilongwe at 09:17 a.m. (0717 GMT) on Monday but was unable to land at Mzuzu airport as scheduled at 10:02 a.m. due to poor visibility. It was ordered to return to Lilongwe but went off the radar and aviation authorities could not make contact with it. Chakwera said all passengers on board were killed on impact and that the military was bringing their remains back to the capital.<br/>
A jet fuel shortage has led airlines flying in and out of Japan to demand an increase in supply from the country’s biggest oil refiner. Eneos Holdings Inc. has been fielding calls from carriers and is working with the government to ease the problem, a spokesperson said via phone. Factors such as labor shortages at airports and logistical bottlenecks all contribute to the fuel not reaching destinations, she added. A weak yen has made Japan an attractive destination for holidaymakers, with record numbers of tourists from markets with stronger currencies flocking to the country, putting pressure on related sectors like hotels and restaurants. International travel is expected to boost global jet fuel consumption this year, according to data compiled by BloombergNEF, with flights from Asia climbing by 23% from the previous year. The surge in demand for aviation fuel poses a challenge to refiners across the region, many of whom are reluctant to increase overall processing rates due to falling profits from other fuels such as diesel and gasoline. Some overseas airlines scrapped plans to add or increase services to Japanese airports due to the uncertain jet fuel supply, Trade Minister Ken Saito acknowledged on Tuesday. He said that while Japan has been able to secure the volumes it needs, there are issues surrounding domestic tankers and refueling at airports.<br/>
India's new aviation minister said on Tuesday he wanted to make air travel more accessible by tackling the issue of rising fares, as the sector sees rapid growth and carriers place record new plane orders.<br/>India is the world's fastest growing aviation market but domestic carriers have to contend with global supply chain disruptions that delay plane deliveries, contributing to higher air fares, executives say. An Indian parliamentary panel proposed in February that the government should frame guidelines to control sudden surges in airfares, adding that "a route-specific fare ceiling can be examined". The airlines say fares are driven by supply and demand. "The prices of tickets have risen for whatever reason ... I really want to delve into this issue (and) how to make them a little more accessible, available for the people of this country," said Ram Mohan Naidu, who is aviation minister in Prime Minister Narendra Modi's newly installed government. The minister also told ET Now news channel that he would hold a "special meeting" at the ministry to look into the issue, without elaborating. India's two biggest airlines - IndiGo, which has a roughly 60% market share and Tata Group airlines, which accounts for about 30% - have hundreds of new planes on order, and the government is adding more airports to cater to growing demand. Domestic air traffic in India grew 23% in 2023 to a record 153m passengers, government data showed, with analysts expecting it to reach 300m passengers by 2030.<br/>
The Airlines Association of Thailand (AAT) has urged the government to elevate more regional airports to become international airports, aiming to generate higher tourism revenue for 55 second-tier cities. During the "Ignite Tourism Thailand" event chaired by Prime Minister Srettha Thavisin on Tuesday, AAT president Puttipong Prasarttong-Osoth said authorities should develop more regional airports, enabling them to accommodate international flights, which could help attract tourists to nearby provinces. To offset air travel expenditure, he said airlines proposed the government include expenses for airfare to second-tier cities in the recent tax deduction measures, which the prime minister agreed to consider. Airlines also want the government announce visa-free policies 2-3 months in advance of their implementation to allow tourists more time to plan and book their flights, said Puttipong. Previous visa-free announcements provided too little lead time, making tourists more reluctant to book trips to Thailand, he said. Puttipong said most airlines would like the government to increase air service agreements with the Indian government, as the additional 7,000 seats per week already agreed to is insufficient for all airlines in Thailand. Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents, said the group is concerned about an influx of foreign tour businesses registering in Thailand via nominees, particularly those from China and Russia.<br/>
Two airports and a major port in Australia have signed up to a A$700m ($467m) renewable energy pact, the country’s largest such program covering multiple states and sectors. The power purchasing deal covers Sydney and Adelaide airports, the port of Melbourne, oil and gas company Lochard Energy Group Plc, and a network of medical and health facilities across the country. Clean energy firms Iberdrola SA and Squadron Wind Energy Development Pty are set to join others in supplying 500 gigawatt hours of power a year under agreements ranging from seven to nine years. IFM Investors Pty and QIC Ltd., two of Australia’s largest infrastructure funds, helped broker the deal, which is in its final stage, as investors race to cut emissions across their portfolios. The government has proposed new laws to be phased in from next year that will require large businesses and financial institutions to disclose information such as greenhouse gas emissions and reduction targets. “Importantly, it provides a blueprint to help more infrastructure assets switch to renewable energy and accelerate the sector’s emission reduction efforts,” Michael Hanna, head of infrastructure at IFM Investors, said in a statement sent to Bloomberg. IFM has an interim 2030 emissions reduction target of 1.16 million tons of CO2 from 2019 levels across its infrastructure portfolio. QIC has committed to a net zero target by 2040 for Scope 1 and 2 for two of its infrastructure funds, a spokesperson said.<br/>
Boeing received orders for only four new planes in May — and for the second straight month, none for its best-selling 737 Max, as fallout continues from the blowout of a side panel on a Max during a flight in January. The results released Tuesday compared unfavorably with Europe’s Airbus, which reported orders for 27 new planes in May. Boeing also saw Aerolineas Argentinas cancel an order for a single Max jet, bringing its net sales for the month to three. The dismal results followed poor figures for April, when Boeing reported seven sales — none of them for the Max. Boeing hopes that the slow pace of orders reflects a lull in sales before next month’s Farnborough International Airshow, where aircraft deals are often announced. But the FAA is capping Boeing’s production of 737s after a door plug blew out from an Alaska Airlines Max, allegations by whistleblowers that Boeing has taken shortcuts to produce planes more quickly, and reports of falsified inspection records on some 787 Dreamliner jets. Boeing, based in Arlington, Virginia, delivered 24 jetliners in May, including 19 Max jets. Ireland’s Ryanair got four and Alaska Airlines took three. Airbus said it delivered 53 planes last month. Despite the slow pace of recent sales, Boeing still has a huge backlog of more than 5,600 orders.<br/>
Boeing said on Tuesday it will open a new engineering facility in Florida for its defense and government services portfolios and aims to hire for nearly 200 engineering jobs this year. Initial plans for the facility in Daytona Beach include employees performing engineering work for military aircraft programs and advanced technology capabilities, with a focus on engineering design, research, development and prototyping capabilities. Boeing Daytona Beach is expected to be operational by late fall, with the planemaker expecting that hiring for the facility will nearly double over the next few years. Earlier on Tuesday, Boeing said it had delivered 24 commercial planes in May, about half of the 50 jets it handed over to customers during the same month a year earlier, as it continued operating a slower assembly line to complete outstanding work.<br/>