The rise in the oil price is putting the squeeze on airline costs and is likely to lead to a rise in air fares, industry executives said Monday. The oil price, which typically accounts for around 30% of an airline's costs, has risen 52% since June 2017 to around US$68 a barrel. IATA CE Alexandre de Juniac said he believed there was a consensus among airlines that an oil price of around $65 to $70 remained "acceptable". "It is not so much a competitive differentiator for an airline," he said. "It puts pressure on costs and it is more a fare inflation trigger." However, airlines said the higher oil price was proving financially damaging because fare increases had so far failed to keep pace with the oil price rise. <br/>
general
Airlines across the world should counter protectionist narratives to ensure seamless operations, the lobby group for global carriers said, as an “open skies” deal in Southeast Asia is set to increase connectivity in the region. “Aviation needs borders that are open to people and trade,” Alexandre de Juniac, IATA’s CE, said in his remarks at the Singapore Airshow. “I would like to imagine a future for aviation where airlines are as free as possible to meet the demands for connectivity.” IATA said airport ownership should be with govts, as private owners have failed to deliver on their promises. The industry is headed toward a “crisis” as infrastructure isn’t being built fast enough to meet growing demand, de Juniac said. “We are yet to see an airport privatisation that has, in the long term, delivered on the promised benefits,” he said. <br/>
Boeing played up the prospects for a potential new mid-market jet on the eve of the Singapore Airshow Monday - but the war for sales has already begun in this area of the market worth hundreds of billions of dollars over the next 20 years. Even before Boeing decides whether to launch its much-touted new jet, the US planemaker and rival Airbus are stepping up sales of existing models to seize market share and disrupt each other's profits without the temporary respite many had been expecting after a busier than expected 2017. Their battle is focused on aircraft with around 200-270 seats, where Boeing leads at the top end with its twin-aisle 787 Dreamliner and Airbus seeks to maintain its dominance of the largest single-aisle planes like the A321neo, executives say. <br/>
A new European Wi-Fi network for airline passengers will be launched by the end of June, the companies behind the project said Monday. German telecoms company Deutsche Telekom and communications firm Inmarsat have teamed up to develop the European Aviation Network (EAN). Combining around 300 base stations across each country of the European Union with a satellite, the project aims to provide smooth broadband coverage over land and water and across the 28 countries of the bloc. Until now, European carriers have had to rely on satellite-only systems for on-board Wi-Fi across the region. Deutsche Telekom and Inmarsat also say the EAN equipment is small, lightweight and easy to install, making it suitable for short-haul planes and low-cost carriers. <br/>