general

Lebanon bans pagers, walkie-talkies from flights

Lebanese authorities on Thursday banned walkie-talkies and pagers from being taken on flights from Beirut airport, the National News Agency reported, after thousands of such devices exploded during a deadly attack on Hezbollah this week. The Lebanese civilian aviation directorate asked airlines operating from Beirut to tell passengers that walkie-talkies and pagers were banned until further notice. Such devices were also banned from being shipped by air, the Lebanese state news agency reported. At least 37 people were killed and more than 3,000 wounded when pagers and walkie-talkies used by Hezbollah members exploded in two waves of attacks on Tuesday and Wednesday. Lebanon and Hezbollah, a heavily armed group backed by Iran, say Israel carried out the attack. Israel has not claimed responsibility. The Lebanese army said on Thursday it was blowing up pagers and suspicious telecom devices in controlled blasts in different areas. It called on citizens to report any suspicious devices.<br/>

Alaska Air-Hawaiian deal marks new DOT approach, Buttigieg says

The US government’s move to secure consumer protections from Alaska Air Group Inc. and Hawaiian Holdings Inc. before blessing their merger marks a “new chapter” in how the US Transportation Department wields its powers, the agency’s top official said. “The department has not been very proactive over the last 30 years or so as these mergers have come along,” said US Transportation Secretary Pete Buttigieg said in a Bloomberg TV interview on Thursday. “We still wanted to make sure that there were protections in place” after the Justice Department opted to not challenge the deal. The department on Tuesday gave the green light for the $1.9b combination to close in exchange for what it called “binding, enforceable” commitments from the airlines. Alaska and Hawaiian must preserve the value of loyalty program rewards, maintain existing service on key routes and maintain support for rural service, among other things. The companies also must ensure competitive access at the Honolulu hub airport.<br/>

US: Cramped airports fuel mini borrowing boom as travel surges

An influx of travelers passing through US airports has created a frenzied borrowing boom to raise cash for expansion projects. Facilities in South Carolina, California, New York and Florida have plans to tap the municipal bond market in the coming weeks, adding to the $12.3b of airport debt already sold this year, according to data compiled by Bloomberg. That volume marks a more than 100% increase from the same period a year ago. Proceeds from the sales will be used to finance new renovation projects designed to improve passengers’ experiences. “Airports are congested, there’s a lot more flights and we just need more improvements,” said Mikhail Foux, head of municipal strategy at Barclays Plc. “Traffic through airports is through the roof right now.” More than 100m people flew through American airports in June, the highest number of passengers since at least 2003, according to data from the Bureau of Transportation Statistics. That surge has caused crowding at gates and long-lines at concession stands, underscoring a need for expansion and renovation projects. Over the coming years, the 10 largest US airports will need at least $55b to $75b of infrastructure improvements, said Vikram Rai, head of municipal market strategy at Wells Fargo & Co. With lower borrowing costs bolstered by Federal Reserve rate cuts, airports are joining an issuance boom by municipal borrowers eager to get ahead of market volatility from the US presidential election in November. Sacramento International Airport is expected to borrow $478.3m of debt in a sale managed by Wells Fargo next week. Proceeds raised will be used to pay for infrastructure projects including a new pedestrian walkway and parking garage. The deal marks the initial portion of a $1.3b improvement plan designed to elevate the customer experience and meet projected passenger demand, according to bond documents. It’s the largest capital initiative in the airport’s history, the preliminary offering statement detailed. “We are absolutely bursting at the seams,” said Chris Wimsatt, deputy director of finance and administration at the Sacramento International Airport. The airport plans to tap muni investors again in 2025 and with potential issuances in 2026 or 2027.<br/>

China kicks off SAF pilot with plans for 2025 ramp-up

China has kicked off the first phase of a sustainable aviation fuel (SAF) trial that will involve the country’s three largest airlines, as it looks to add more partners in 2025. The ‘Big Three’ – comprising Air China, China Eastern Airlines and China Southern Airlines – will operate 12 flights from four Chinese airports using an unspecified SAF mix, with the first phase to run from 19 September to the end of the year, says the Civil Aviation Administration of China (CAAC). The four airports are: Beijing’s Daxing airport, Chengdu’s Shuangliu airport, as well as Zhengzhou and Ningbo airports. The SAF uplifted from these airports will be produced by state-owned China National Aviation Fuel (CNAF). The agency adds that the second phase will kick off in 2025, with “more participating units involved”. It did not disclose how many more – or which companies – it was looking to work with. The rollout comes as the CAAC also forms a SAF industry alliance, involving other state-owned players such as CNAF, Civil Aviation University of China, and the CAAC’s research institute. CAAC deputy director Han Jun says that while the development of SAF is “being consolidated” in China, it was also “necessary to promote pilot projects” to help achieve its large-scale take-up. Beijing recently affirmed its commitment to accelerate the development of SAF and other biofuels, amid a slew of multi-million dollar investments into the sector.<br/>

US transport chief says he's optimistic for Boeing labor resolution

U.S. Transportation Secretary Pete Buttigieg on Thursday said he believes both sides want to reach an agreement in the labor dispute at Boeing in which 30,000 striking machinists have halted production of its best-selling 737 MAX and other airplanes. "I do believe that both parties want to get to a resolution here, and hoping to see one that makes sense for the workers and it works for a company that really needs to find its way forward on so many fronts," Buttigieg told CNBC in an interview. Other airlines as well as the Biden administration are watching the situation closely, he added.<br/>

The Boeing strike has already cost the company and its workers $572m – and the pace of losses is climbing

The strike at Boeing by 33,000 members of the International Association of Machinists union, which reaches its seventh day today, has already cost the company and workers $572m, according to an estimate from Anderson Economic Group. And the pace of losses will climb rapidly if there’s no settlement, as soon as the second week of the strike, said Patrick Anderson, the founder and president of the Michigan research firm, which has experience estimating the cost of economic disruptions like strikes. “The first week of losses for Boeing are substantial, but they’ll pale in comparison to what comes in the following weeks,” Anderson told CNN. Still, the losses are less than the $1.6b that Anderson estimates the first week of last year’s autoworker strikes at General Motors (GM), Ford (F) and Stellantis (STLA) cost the economy. The strike at Boeing (BA), on the other hand, has yet to have a measurable economic impact on airlines so far, Anderson said. Boeing deliveries to many airlines were already delayed, after a mid-air door plug blowout on a Boeing 737 Max in January led to increased oversight by the Federal Aviation Administration (FAA). The union told CNN Wednesday the two sides remain far apart at the negotiating table, and with the companysoon due to start rolling furloughs of many non-union staff, the losses could hit $1b early next week. The biggest losses so far come from the near-halt to Boeing’s commercial airplane production. Anderson estimates the company has lost $445m in the strike’s first week as it has been unable to complete and deliver aircraft to customers. Boeing gets most of the money from an aircraft sale only upon delivery of the plane. The losses for workers, primarily the 33,000 union members who have gone on strike, as well as for suppliers come to about $117m in the first week. The top pay scale for union members at the company is $51.30 an hour, or $2,052 for a 40-hour week, although there are various pay premiums on top of that as well as overtime.<br/>

Boeing accused of being ‘unprepared’ for federal mediation as strike continues

Union officials have accused Boeing of being “unprepared” after talks resumed to end the US’s largest strike. Boeing workers will be joined on picket lines by the president of the International Association of Machinists and Aerospace Workers (IAM), Brian Bryant on Thursday a day after the company announced plans to furlough “large numbers” of employees. Around 33,000 workers at Boeing in Washington and Oregon began striking on 13 September. Union officials have said talks between the two sides have gotten off to a poor start. “Boeing must deliver a contract that reflects the hard work and sacrifices that workers have made over the past decade,” said Bryant. “The IAM and our 600,000 members have the backs of every single striking Boeing worker in this nation.” The company has announced a freeze recruitment efforts and is planning to enact furloughs affecting thousands of workers as the strike halts production, and costs to the company reach an estimated $100m per day. Workers voted 96% in favor of the strike after rejecting a tentative agreement that included 25% wage increases over the four-year contract, but workers have argued that came with takeaways. IAM Local 751 went into negotiations with Boeing and a federal mediator on Tuesday, but talks reportedly did not initially go well with union officials accusing the company of coming into the negotiation unprepared. “We will not mince words – after a full day of mediation, we are frustrated. The company was not prepared and was unwilling to address the issues you’ve made clear are essential for ending this strike: Wages and Pension,” the union’s negotiating committee said in a letter to members. “The company doesn’t seem to be taking mediation seriously,” the negotiating committee said. “We are fighting for what is right and just – for what we have earned over the past 16 years.”<br/>

Services market to almost double to $290bn by 2043: Airbus

Airbus Global Services expects the global commercial services market will almost double to $290b per year in 2043 from its current level of $150b. During that time, the global commercial fleet will rise to 48,230 aircraft, including 42,430 new deliveries, the company says in its latest 20-year forecast, published on 18 September. More than 18,400 aircraft will have to be replaced, paving the way for operators to repair, recycle and reuse the parts. That work will require a massively expanded skilled workforce, Airbus says. The industry will need 2.26m new workers during the next two decades – 690,000 technicians, 620,000 pilots and 950,000 cabin crew.“This is clearly something we have to pay attention to, and is a challenge for airlines,” says Sonia Dumas, head of Airbus Services marketing. The report focuses on three workstreams: ‘maintain’ (maintenance, spares and aircraft life-cycle services), ‘train and operate’ (training and flight operations services), and ‘enhance’ (upgrades, connectivity and in-flight entertainment services). By 2043, the ‘maintain’ stream will account for 85% of the total market, at $244b, with ‘train & operate’ reaching $17b, and ‘enhance’ at $29b. “These services are instrumental to enable the rise in traffic demand and fleet efficiency and utilisation,” adds Cristina Aguilar-Grieder, senior vice-president of customer services. South Asia and the Middle East will be the regions that show the greatest growth in the next two decades, with China emerging as the largest services market, at about $61b, by 2043. North America and Asia-Pacific will be at around $50b each and Europe at $55b. The market for aircraft dismantling and recycling will see 7.5% annual growth, and is forecast to reach about $500m by 2043. Currently there are more than 100 dismantling and recycling services centres globally, with that figure expected to triple by 2043.<br/>

Airbus, Boeing paint rosy outlook for Indonesian market growth

Airbus and Boeing see strong long-term potential for the Indonesian airliner market, with both forecasting vast demand for jets in the coming two decades. During media briefings at the inaugural Bali air show on 19 September, the two airframers described favourable demographic trends and the importance of air connectivity in a nation formed by thousands of islands spread across a vast expanse of Southeast Asia. Anand Stanley, president Airbus Asia-Pacific, said that Indonesia is a major priority for Airbus, noting that 250 Airbus jets are in service in the country with eight airlines, with 215 on order. Stanley observed that Indonesia’s gross domestic product is growing by over 4% annually, which will see GDP rise to over $3t by 2043. During this period, annual trips per capita will go from 0.4 to 1.4, which means that demand for new aircraft from major airframers during will come to “at least” 1,000 units in the coming 20 years. Stanley made a strong push for the smallest jet in the Airbus family, the A220. “The A220 is the perfect candidate to connect all the islands in Indonesia,” says Stanley. While the market is now dominated by larger narrowbodies such as the A320 and 737 families, he feels that the A220’s ability to operate from shorter runways will allow it to serve locations that have hitherto been served by turboprops. Moreover, the A220’s 7h endurance would allow it to operate from western points in Sumatra directly to eastern points in Papua, Indonesia’s province on the island of New Guinea.<br/>

China’s home-grown C919 reaches new heights with flight to ‘roof of the world’

China’s first home-grown narrowbody civilian aircraft flew to the capital of the Tibet autonomous region for the first time on Thursday, reaching one of the highest airports in the world known for its challenging weather patterns. A C919 “smoothly landed” at Lhasa Gonggar Airport in far western China after travelling for about two hours from Chengdu in the southwestern Sichuan province, according to the official Xinhua News Agency. The airport serving the Tibetan capital of Lhasa sits at around 3,650 metres (11,979 feet) above sea level in the Himalayan mountain region, giving it the moniker of the “roof of the world”. Low air pressure means planes should be in top shape, Guangzhou-based aviation analyst Li Hanming said. “The change of air pressure due to elevation requires extra performance to take-off and land safely,” Li said. “The lower air pressure makes it harder for jet fuel to burn, thus reducing [an aircraft’s] thrust and negatively impacting aircraft performance.” The C919 would conduct “research and development test flights” on the Tibetan plateau to check “key” systems, including avionics, the Xinhua added, referring to the on-board electronics systems for communications and navigation. The aircraft would also receive “high-plateau airport adaptability inspections”. In December, the Shanghai-based Commercial Aircraft Corporation of China (Comac) and the Lhasa-based Tibet Airlines agreed to develop a plateau-suited model of the aircraft. Comac said in February that it had signed a deal with Tibet Airlines to make 40 of the narrowbody C919 designed for high-altitude plateaus.<br/>