Interventions rooted in behavioural economics can significantly and safely boost the use of fuel- and carbon-efficient flight practices in the airline industry, according to economists at the University of Chicago and the London School of Economics and Political Science. The large-scale study, which incorporated data from more than 40,000 unique flights, found significant savings in carbon emissions and monetary costs when airline captains were provided with tailored monthly information on fuel efficiency, along with targets and individualised feedback. The behavioural effects of such interventions are currently estimated as the most cost-effective way to prevent a metric ton of carbon dioxide from entering the atmosphere. <br/>
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The exclusive feel of domestic airline clubs has taken a hit over the last decade. They are more crowded, and the free premium cocktails have been disappearing. Free Wi-Fi is no longer even a draw because it is available in many airport terminals. But with bankruptcies and mergers in their rear-view mirrors and low fuel prices helping profits, airline clubs in the US are getting an upgrade. Domestic airlines are reinvesting in the customer experience, especially for their biggest spenders, who are willing to pay extra to escape terminals for their own power outlets and comfy chairs. Catering to high-end customers is a major goal for airlines, said a hospitality management professor. He noted that airlines have already restructured rewards programs to benefit their biggest spenders and have improved the seating in the front of planes. <br/>
After posting record-high profits last year, US airlines made US$4.6b less in Q1 of 2016 than the previous period, according to the DoT’s Bureau of Transportation Statistics. Passenger airlines reported a net profit of $3.1b in Q1, down from $7.7b in Q4 of 2015. But profits are about the same as Q1 of 2015, which tends to be a less busy travel period. Total operating revenue from January to March was $39b, with 74% coming from fares. Operating expenses during that time frame were $33.4b, with fuel costs accounting for $5.4b, or 16.1%. Air carriers collected nearly $947m in baggage fees in Q1 of 2016, up $100m from the same time period last year. Airlines also took in $745m in reservation change or cancellation fees in Q1. <br/>
A govt watchdog took a peek behind the curtain of airline frequent-flier programs and thought the DoT could do a better job investigating complaints about them. Travellers filed 76 complaints against airlines over loyalty programs from 2012 through 2014, according to an inspector general’s report Monday. The watchdog checked 36 of those complaints and found 4, or 11%, deserved greater scrutiny. Frequent-flier programs have drawn attention recently as American, Delta and United have shifted their programs to award miles not on how far customers fly, but rather on how much they spend. Airlines determine the availability of award seats based on actual demand and a complex forecast for future demand. But they don’t publicly share how many miles travellers are redeeming for specific trips. <br/>
A British vote to leave the EU in Thursday's referendum would call into question EU agreements on open airspace that have allowed a huge expansion of air travel, creating uncertainty for British and other EU airlines. Flying rights between two countries, including how many airports a carrier may fly to and how often, are typically negotiated in bilateral treaties. But by creating the single aviation market in the 1990s, the EU allowed the region's airlines unlimited access to the skies of fellow member states, doubling traffic growth in the first 4 years. A Brexit vote in Thursday's British referendum on EU membership would therefore affect all pan-European carriers, not just British ones. In the immediate future, airline bosses are worried about the impact a Brexit could have on travel demand. <br/>
London’s Gatwick Airport has opened its new Pier 1 to passenger traffic. The pier, with 5 gates, adjoins the airport’s South, or original, terminal and replaces a previous pier that had been in operation on the site since 1958. Construction of the new GBP186m (US$273m) pier includes a new baggage system for the entire South Terminal capable of handling 4,250 items an hour as well as the airport’s first “early bag store,” which can accept baggage up to 18 hours before departure, allowing passengers to check in their bags before heading to a nearby hotel for a night’s rest before their flight. The opening of the new pier is part of Gatwick’s attempts to wrest a new runway for South East England from London Heathrow, the favoured option chosen by a commission of experts almost a year ago. <br/>
Norwegian air navigation service provider, Avinor, has officially joined the iTEC collaboration, marking another step toward aligning air traffic management systems in support of a Single European Sky (SES). SES is the plan to reduce the myriad existing divisions of European airspace to increase air traffic efficiency. The scheme has been progressing slowly as a result of a combination of a lack of support from national govts and opposition from some air traffic controllers concerned at the prospect of job losses. iTEC is a common flight data processing system, a major step toward the creation of a single, efficiently structured European airspace. The agreement paves the way for Norway to join the UK, Germany, Spain and Netherlands in the use of iTEC. <br/>
India will allow foreign entities such as funds and portfolio investors to fully own local airlines, raising from an earlier cap of 49%, in a bid to lure investment. Foreign investment limits in commercial airlines will be increased to 100%, with anything above 49% needing approvals, the govt said Monday. Prime minister Narendra Modi’s administration, however, decided to keep the restrictions on foreign airlines’ stake in local operators at 49%. The rule changes follow days after Modi unveiled a new aviation policy that made it easier for domestic operators to fly abroad. Although the revamp won’t allow SIA or AirAsia or Etihad to raise their stakes in local ventures beyond 49%, they can still join hands with overseas investors to set up a fully foreign-owned airline. <br/>