Stories

Chinese State-Owned Airlines Took Heavy Losses in 2021

Lei Yan
Verified

Edited By:

Parker Davis

China Eastern's flagship Boeing 777-300ER at Shanghai's Pudong Airport (Photo: AirlineGeeks | Albert Kuan)

On the evening of Jan. 28, the three biggest state-owned airlines of China — Air China, China Southern, and China Eastern — announced that all three airlines are expecting over 10 billion yuan ($1.5 billion) in losses during the calendar year 2021. Those losses may surpass their records set in 2020.

Over the past year, the aviation market in China has still been heavily impacted by the pandemic. The authority maintained the zero-tolerance policy against the virus, and one of the consequences was low travel demands from both domestic and international markets. All three airlines attributed the main reasons for heavy losses to the influence of the pandemic.

During the traditional peak travel seasons in China, heavy restrictions were put in place to reduce traffic, especially in and out of areas that had Covid-19 cases. The Chinese New Year travel rush, summer season and the summer travel peak included a few of the major traveling seasons. Both of which were impacted by Covid-19 resurface in some cities, resulting in much lower traffic compared to projections.

Air China

Air China announced that the airline is expecting a 14.5-17 billion-yuan loss in the calendar year 2021. The losses were attributed to the continuing pandemic leading to the limitation of international travel, uncertainties of domestic traffic due to China’s zero-tolerance policy towards Covid-19, and fluctuating oil price and foreign exchange rates. In 2020, the company lost 14.4 billion yuan.

The first Air China A350-900 taking off. (Photo: Airbus)

Air China is the leading international carrier in China. Before the pandemic, over 30% of Air China’s traffic and revenue was contributed by international passengers and cargos. Chinese Authority’s strict limitation on international travel chipped away one of the most profitable sectors of the airline.

Additionally, the heavy losses of Cathay Pacific held back the performance of Air China. The Chinese Flag Carrier is the second-largest shareholder of Cathay Pacific, the Hong Kong-based international airline. Air China owns 29.99% of Cathay Pacific, right behind The Swire Group, which owns 40% of the airline.

China Southern

China Southern released that the airline is expecting an 11.3-12.8 billion yuan loss in 2021. The airline attributed the reasons for heavy loss to the weak recovery of the domestic market, and the lowered margin resulting from lowered prices. The Guangzhou-based company is heavily relying on domestic traffic as their profit engine. However, the traffic was still concentrated in first-tier cities such as Beijing, Shanghai and Guangzhou. The recurring Covid-19 cases in those cities heavily impacted airlines’ performances.

A China Southern Airbus A319neo | (Photo: Airbus)

China Eastern

China Eastern is expecting an 11-13.5 billion-yuan loss in 2021. The driver behind the heavy loss is the soft travel demands across the year and the high operating expense of the airline.

Chinese carriers maintained a low level of layoffs since the start of the pandemic, and they are cutting the human resource expense by reducing hours of work.

A China Eastern Airbus A319 retracts its landing gear on departure. (Photo: AirlineGeeks | Ben Suskind)

A Long Way to Go

Later this week, the highly anticipated Beijing Winter Olympics Games will commence. However, due to the strict international travel restriction placed by the authority, virtually no traffic from the public will be induced by the big event. The authority is slowly carefully lifting the travel limitations within China and trying to tailor the policy to each region. However, airlines still have a long way to go to break even in 2022.

Lei Yan

Lei is from Inner Mongolia, China, and now lives in Guangzhou. He grew up in an aviation family, where his passion began. During his time at Penn State University, he studied Industrial Engineering specializing in operations research, and he graduated with an honor’s thesis on airport gate assignment optimization. Now, he is a Purchasing Manager with Procter & Gamble. In his free time, he enjoys flying, reading, and wandering around the city.

Qatar Airways Becomes Launch Customer for Boeing 777X Freighter

Charlotte Seet
Verified

Edited By:

Ryan Ewing

A Boeing 777X at the Dubai Airshow. (Photo: AirlineGeeks | William Derrickson)

Since June 2021, what was initially thought to be a relatively small dispute between Airbus and Qatar Airways has evolved into a massive legal dispute.  Signs of the rift between the two parties gave rise due to the surface pain issues on the airline’s flagship Airbus A350s for both the -900 and -1000 variants, which eventually led to several tossing of blames here and there.

The drift between the two parties showed signs of having been even wider when it was announced that Singapore Airlines, and not Qatar Airways, was going to be the launch customer for the freighter version of the widely-popular Airbus A350 — the A350F. As more airline customers started placing their orders, many were left wondering just when Qatar Airways who also stands on the podium for being one of the largest A350 operators would place an order.

Then things probably took a more sour turn when perhaps one of the most shocking turns of events amidst the legal dispute happened. Airbus terminated its contract to sell Qatar Airways 50 Airbus A321neos — a massive slap to the airline since it has been one of the most prominent airline customers for the Toulouse, France-based aircraft manufacturing giant.

It eventually led the industry as a whole to wonder what the airline’s next move might have been, either in reconciliation to recover ties with Airbus or to cut even deeper to cease what’s remaining of their relationship.

Big Win for Boeing

It would seem that Qatar Airways has no immediate plans for reconciliation with Airbus, because the airlines placed a huge order with Boeing instead, worth up to a whopping $20 billion at just list prices for a total of 102 Boeing aircraft. This order also includes up to 50 Boeing 737 MAX aircraft, including 25 confirmed orders for the 737 MAX 10, and 25 options. Additionally, the carrier has orders for up to 50 Boeing 777X freighters, including 34 confirmed orders for the 777-8 freighter and 16 options and finally, two current-generation Boeing 777 freighters.

“Boeing has a long history of building market-leading freighter aircraft and Qatar Airways is honored to have the opportunity to be the launch customer for the 777-8 Freighter, an aircraft which will not only allow us to further enhance our product offering for our customers but also help us meet our objectives to deliver a sustainable future for our business,” Mr. Akbar Al Baker, Qatar Airways Group Chief Executive, said, in a press release.

This big order is a huge win for Chicago-based Boeing not just in terms of its order books, but also because it has finally landed the first customer for the 777X freighter. On the flip side, this proves to be a huge blow to fellow rival Airbus and is definitely widening the rift between the two disputing parties – because Qatar Airways not only found a replacement for those terminated A321neos, but it will also become the launch customer for the 777X freighter.

“We are delighted to launch Boeing’s next great cargo airplane – the 777-8 Freighter – with Qatar Airways, one of the world’s largest cargo carriers and our partner since the airline began operations 25 years ago,” Boeing Commercial Airplanes President and CEO Stan Deal, said. “Our team is ready to create an airplane that will serve them well for many decades. Qatar Airways’ selection of the efficient 777-8 Freighter is a testament to our commitment to provide freighters with market-leading capacity, reliability, and efficiency.”

Recurring Problems

Good news aside, this big order could eventually backfire on Boeing, especially considering the fact that the passenger version of the highly-anticipated Boeing 777X has not even entered service yet — despite having been originally scheduled to arrive by June 2020. Currently, the 777X does not seem to be ready to fly yet as it’s only scheduled to finally fly in late 2023.

The lagging of the aircraft delivery timeline has caused great upset amongst the likes of Emirates — another Gulf carrier —  which had over 100 on order, but the constant lagging has caused Emirates President Tim Clark to threaten the refusal of the 777X delivery, as well as resorting having to switch some of the 777X out for the smaller Boeing 787 Dreamliner.

Furthermore, Qatar Airways originally had approximately 60 of the passenger version on order, which included 10 Boeing 777-8s and 50 Boeing 777-9s. Interestingly and as part of the new big order, 20 of those on order have been replanned to be converted into freighters. Nonetheless, the delay in the passenger jet version highlights a recurring problem within Boeing whereby delays seem to be rather inevitable and even more so, as the 777X freighter version is only expected to enter service by 2027 at the earliest.

One can’t doubt that should the freighter version experience tremendous delays as well, then Qatar Airways might not be too happy either as Mr. Akbar Al Baker, added, “We certainly push Boeing hard to deliver upon our expectations, and the team at Boeing consistently strives to meet and exceed our expectations, giving the opportunity for us to be here today to launch the most significant new freighter aircraft for a generation.”

Striking Back at Airbus

Hailing as one of the world’s leading international air cargo carriers, it does make sense for Qatar Airways to invest much more into its cargo airline, which currently boasts a fleet size of 28 aircraft consisting of only the Boeing 777F and the Boeing 747F. So perhaps one could attest that the 777X order was just in-line with the current freighter partnership that the airline already had with Boeing, especially since the manufacturer claims that the payload of the 777X freighter is nearly identical to that 747-400F, with a 25 percent in fuel efficiency, emissions, and overall operating costs.

However, the Gulf carrier only has a fleet of Airbus-manufactured narrow-body aircraft — the A320s. Fleet renewal is still a necessity, so that could be perceived as the main reason why it placed such a big order for the 737 MAX. Additionally, another reason could be attributed to the loss of the A321neo contract and this was maybe the airline’s manner of delivering a message to Airbus through such politics.

Whilst the fleet renewal might not be as stunning considering the A321neo family outbids the 737 MAX in terms of versatility and range, it would also mean that Qatar Airways would have to juggle its crew and cabin services between two different aircraft types and quite possibly scrap any long-haul flight plans it initially had for its narrow-body fleet.

Charlotte Seet

Fascinated by aircraft from a very young age, Charlotte’s dream was to work alongside the big birds one day. Pursuing her dream, she went on to achieve her diploma in Aviation Management and is currently working on her degree in Aviation Business in Administration with a minor in Air Traffic Management. When she’s not busy with school assignments, you can find her aircraft spotting for long hours at the airport. In Charlotte’s heart, the Queen of the Skies will always be her favorite aircraft.

Etihad Receives IATA IEnvA Stage 2 Accreditation

Victor Shalton
Verified

Edited By:

Benjamin Pham

Etihad's 787 Greenliner sitting on the ramp prior to the 2021 Dubai Airshow (Photo: Etihad)

Etihad Airways successfully completed IATA’s Environmental Assessment stage 2 and received accreditation in four key operational areas. The areas include facilities management, flight operations, Etihad technical division and Etihad Catering Services.

The IATA Environmental Assessment (IEnvA) program is a blueprint for airlines to achieve sustainability in all air and ground operations. It is an evaluation system designed to independently assess and improve the environmental management of an airline.

Stage 2 represents the highest level of IEnvA compliance and requires an airline to demonstrate ongoing environmental performance improvement. Etihad has committed to achieving net-zero carbon emissions by 2050 and halving its 2019 emission levels by 2035.

Mariam Al Qubaisi, Head of Sustainability and Excellence Division, Etihad Airways, said, “Our world is becoming more environmentally conscious by the day. Etihad is proud to play a major part in reducing the carbon impact of the aviation industry, in the UAE and around the world. We have recorded many great achievements, from our first ecoFlight from Abu Dhabi to Brisbane in 2019, to the recent launch of our Sustainability-focused loyalty program, Conscious Choices, to reward guests for making sustainable choices when they travel and in their everyday life.”

CEIV Certification

The United Arab Emirates’ national carrier is also received IATA’s CEIV Live Animals, CEIV Fresh and CEIV Pharma certifications.

The certification was awarded — following an IATA-led assessment of Etihad Cargo’s dedicated LiveAnimals program — for animal transportation, SkyStables, equine transportation, products and its logistics’ audit checklist to ensure compliance with standards, requirements, and Live Animals Regulations (LAR).

In addition, the certification endorses and accredits Etihad’s services for the transportation of live animals —reinforcing its position as a prominent international air cargo carrier and reaffirming its commitment to animal welfare.

The key benefits of CEIV Live Animals certification include improving animal welfare and safety through appropriate quality and risk management and enhancing standardization and professionalism in the handling and transportation of live animals in a multimodal environment. The certification also enforces compliance with the IATA LAR, elevating staff competency through efficient and robust training programs, and enabling increased collaboration among stakeholders and certified trade lanes.

Brendan Sullivan, IATA’s Global Head of Cargo, said, “Handling and transporting live animals is challenging. Each type of animal has its own specific requirements. Achieving CEIV Live Animals certification means Etihad Cargo’s customers can benefit from extra assurance that their precious cargo is in safe hands. We congratulate the airline on becoming the first in the Middle East to complete the suite of CEIV certifications – Pharma, Fresh and Live Animals.”

Victor Shalton

Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.

Ethiopian Airlines’ Boeing 737 MAX Returns to the Skies

Chase Hagl
Verified

Edited By:

Benjamin Pham

Ethiopian 737 MAX
An Ethiopian Airlines 737 MAX 8. (Photo: AirlineGeeks | William Derrickson)

On Tuesday, Ethiopian Airlines operated its first Boeing 737 MAX flight almost three years after regulators grounded the fleet globally — following two deadly accidents involving the aircraft. 

The flight was scheduled for arrival in Kenya but remained within Ethiopia due to weather surrounding the area. Passengers on board the flight included government officials and diplomats. 

While en route, acting Chief Executive Officer Esayas Woldemariam said, “We made sure everything is in order. Now we are doing a demo flight so to speak. It is after this that we are availing it to commercial aviation,” while talking to reporters about how commercial flights would resume after the demonstration, and the airline showed that the aircraft was indeed safe. 

The aircraft was originally grounded by aviation authorities globally, following the second fatal accident in March of 2019, which involved a 737 MAX aircraft operated by Ethiopian Airlines, resulting in the loss of all 157 souls on board. Five months prior to this accident, Lion Air Flight 610, crashed and killed all 189 souls on board. Both flights were operated by the Boeing 737 MAX aircraft. 

“Safety is the topmost priority at Ethiopian Airlines and it guides every decision we make and all actions we take,” CEO Gebremariam said in a statement. “In line with our initially stated commitment to become among the last airlines to return the B737-Max, we have taken enough time to monitor the design modification work and the more than 20 months of rigorous recertification process and we have ensured that our pilots, engineers, aircraft technicians and cabin crew are confident on the safety of the fleet.”

For the airline, the return of the aircraft comes over a year after the Federal Aviation Administration lifted the grounding order on November 19, 2020, allowing it to return to the skies in the United States on these mandatory fixes:

  • MCAS must compare data from more than one sensor and avoid relying on a single angle-of-attack sensor that’s giving faulty readings.
  • All aircraft must have a warning light that shows when two sensors are disagreeing.
  • When MCAS activates, it must do so only once, rather than activating repeatedly.
  • If MCAS is erroneously activated, flight crews must always be able to counter the movement by pulling back on the control column. 
  • Pilots must get more-rigorous training on MCAS, including time in a MAX simulator

Currently, the aircraft has been given approval in most areas of the world including Europe, Australia, Japan, India, Malaysia, Singapore, Indonesia and Ethiopia. However, the plane remains grounded in some countries including Russia and China, but the list continues to grow smaller as the plane proves to be safe.

Since the approval to return to operation a year ago, the MAX aircraft has amassed over 900,000 total flight hours in 349,000 commercial flights. 

Ethiopian Airlines currently has four 737 MAX aircraft in its fleet — with 25 on order.

 

Chase Hagl

Chase Hagl grew up in Twin Falls, Idaho. His love and passion for Aviation landed him in Orem, Utah where he obtained a B.S. in Aviation Management with a minor in Business Management from Utah Valley University. Chase currently works as a flight attendant in Charleston, SC and is also the primary Inflight ASAP ERC representative for startup airline, Breeze Airways. His experience in the aviation industry spans back four years, working in areas including agriculture application, customer service, maintenance, and flight ops. In his free time, Chase enjoys road biking, astronomy, and flying.

Chilean Government Imposes New Consumer-Friendly Airline Regulations

Juan Pedro Sanchez Zamudio
Verified

Edited By:

Ryan Ewing

A JetSMART Argentina A320 taxiing in Mendoza. (Photo: AirlineGeeks | João Machado)

On November 30, the Chilean government issued Law No. 21392, a regulation that modifies the aeronautical code, which allows air tickets’ endorsement or transfer, as well as its full refund.

The rule states that, as well as the endorsement or transfer and the full refund procedures, can be carried out through a digital form, or personally at the ticket sales offices, airport counters and authorized agencies that the carrier has.

The rule in question states that the passenger may freely endorse or transfer his air ticket, for one way and/or round trips, at no cost. The passenger can endorse or transfer the ticket up to one day prior to the flight.

The transfer of the right in question may be possible between people and only once for each ticket. During a year, the passenger may only use this a maximum of two times per carrier, at the rate of one transfer per semester.

On the other hand, passengers will have the right to unilaterally terminate the air transport contract, nullifying the ticket and receiving a full refund without penalty. This procedure can be done within 48 hours after purchasing the ticket, for trips that are purchased at least seven calendar days before the date and time of the scheduled departure.

In case the scheduled departure is within a period equal to or greater than 180 days from the purchase of the ticket, the withdrawal period must be done within seven days after the air ticket’s purchase. The air ticket refund must be reimbursed within a period of 10 days, through the same payment method used for the ticket purchase.

In case the air ticket was purchased in cash, the carrier must agree on the passenger’s method to make the reimbursement.

The first airlines in Chile to change its fare policies were Sky Airline and JetSmart.

Although LATAM is the Chilean airline with the largest number of operations within the country, it has not yet updated its fare policies according to the new Chilean regulations. It is important to point out that if an airline does not comply with this new regulation, it may be fined by the Chilean authority in charge of safeguarding customer protection.

Finally, it is necessary to mention that the rule in question has not specified whether it applies to international flights and foreign airlines that operate in Chile. This new law is a great step to avoid the excessive charges that airlines often impose on passengers.

Juan Pedro Sanchez Zamudio

The three things Juan Pedro loves most about aviation are aircraft, airports, and traveling thousands of miles in just a few hours. What he enjoys the most about aviation is that it is easier and cheaper to travel around the world and this gives you the opportunity to visit places you thought were too far away. He has traveled to different destinations in North, Central, South America and Asia. Born, raised and still living in Perú, Juan is a lawyer, soccer lover, foodie, passionate traveler, dog lover, millennial and curious by nature.

PLAY Announces New Flights To New York Stewart

Vanni Gibertini
Verified

Edited By:

Benjamin Pham

PLAY Airbus A321neo in flight (Photo: PLAY)

Today, Icelandic low-cost airline PLAY is announcing a new service connecting Iceland to the United States. Starting June 9, PLAY will fly between its main base at Rekjavik, Iceland’s Keflavik Airport and New York’s Stewart International Airport

The airport is located in Orange County, N.Y., near the towns of Newburgh, N.Y. and New Windsor, N.Y. — which is approximately 60 miles north of Manhattan.

There are currently three U.S. carriers operating or planning to operate from the airport: Allegiant, Frontier and JetBlue. PLAY will be the only airline planning to operate international services from this airport, and its passengers will be the first to benefit from the recently-constructed $37 million U.S. Customs facility.

PLAY began its operations in May 2021 — making it the first airline to launch after the COVID-19 crisis swept the world of commercial aviation. During the first six months of operations, PLAY carried over 100,000 passengers on more than 1,000 flights, achieving a 53.2% load factor and a 96% on-time arrival rate.

“New York is a critical location for both European tourists looking to explore Manhattan and American travelers heading to 22 destinations including Iceland, Paris, Dublin, and more. Stewart International Airport is uniquely situated as a hub for travelers in New York and surrounding states. Passengers have convenient transportation options to reach the airport, in addition to short wait times in the security line and low costs for parking their cars,” PLAY CEO Birgir Jónsson said.”The low fares and flexibility that passengers experience at Stewart International Airport are exactly what passengers seek when they book their travel with PLAY.  We anticipate strong bookings in 2022, and with New York as our third U.S. destination, PLAY passengers will have more choices when booking last-minute trips, work-cations, and spontaneous adventures.”

New York Stewart will be the carrier’s third destination in the U.S. after Baltimore and Boston. As a result, the airline’s new service will be an expansion of its existing services to the growing Hudson Valley, New Jersey and Connecticut — known as the Tri-state area.

Flights will be operated on the Airbus A321neo aircraft that are capable of carrying 192 passengers in a single-class configuration.

Iceland Commercial Aviation: From Boom To Bust (And Back?)

During the last decade, very few countries saw as many dramatic changes in their national commercial aviation competitive arena compared to Iceland. The meteoric rise and growth of ultra-LCC WOW Air and the parallel expansion of incumbent flag carrier Icelandair that tried to keep up with the “new kid on the block” made Keflavik International Airport an important crossroad for passengers looking to cross the Atlantic on a budget.

However, after the demise of WOW in 2019 and the subsequent collapse in demand due to international travel restrictions brought by the COVID-19 pandemic, Keflavik Airport saw its terminals that just a few months earlier were bursting at the seams during peak hours turn into desolate empty quarters. Icelandair drastically reduced staff levels and salaries to cope with a very uncertain future as it integrated its domestic operations under the mainline brand to rationalize its services.

In this almost post-apocalyptic scenario, PLAY took on the challenge to fill a void left in the market and revive the option for passengers looking to travel between Europe and the U.S. at lower fares — possibly while making a stop to visit the natural wonders of Iceland.

Gateway To Europe

Ticket sales for PLAY flights departing New York Stewart will start on Fe1.1 and will include 22 destinations in Europe including Stuttgart, Germany; Trondheim, Norway; Gothenburg, Sweden; Copenhagen, Denmark; London, Paris, Dublin, Berlin and Brussels.

PLAY offers passengers the ability to tailor their travel experience to their needs with a-la-carte add-ons such as in-flight meals, carry-on bags, checked bags among other options. With a flexible COVID-19 policy, travelers have peace of mind that they can adjust their flights as needed.

 

Vanni Gibertini

Vanni fell in love with commercial aviation during his undergraduate studies in Statistics at the University of Bologna, when he prepared his thesis on the effects of deregulation on the U.S. and European aviation markets. Then he pursued his passion further by obtaining a Master’s Degree in Air Transport Management at Cranfield University in the U.K. followed by holding several management positions at various start-up carriers in Europe (Jet2, SkyEurope, Silverjet). After moving to Canada, he was Business Development Manager for IATA for nine years before turning to his other passion: sports writing.

UK Airlines May Face Pay Out for 1 Hour Delays

Daniel Morley
Verified

Edited By:

Ryan Ewing

An aircraft lands at Heathrow Airport (Photo: London Heathrow Airport)

Under proposed rules in the United Kingdom, airline passengers on domestic flights may receive compensations for flight delays of an hour, according to the BBC.

Currently, the country still follows rules from the European Union, in which airline passengers are only entitled to compensation for a delay if the delay extends beyond three hours. The new law in the U.K. would introduce a tiered compensation system for delayed passengers based on the length of the delay. The structure of the compensation offered is similar to already existing models on the U.K.’s railways and ferry systems. 

Passengers on flights under 1,500 kilometers are entitled to £220 for flight delays of three hours. With the country leaving the European Union a few years ago lawmakers are looking to create new laws independent of previous rules from Brussels. The country’s lawmakers are also looking at giving the Civil Aviation Authority (CAA) more power to enforce consumer laws and in turn, give air carriers fines for breaches.

Compensation Based on Ticket Price

The new tiered system for domestic flights will see passengers able to claim up to 25% of their ticket price for delays between 1 hour and 2 hours, 50% of their ticket price for delays of more than 2 hours and less than 3 hours, and 100% of their ticket price for delays of 3 hours or more.

The new laws are still being discussed and compensation could be changed if a final deal on new rules is made. The new regulations would also require airlines to sign up for the alternate dispute resolution scheme, which helps travelers claim compensation without going to court. 

Lawmakers developing the new regulations are also looking to give those in wheelchairs more compensation when things go wrong. Proposed rules would require airlines to pay the full amount for a broken or damaged wheelchair. Currently, airlines are only obligated to pay £1200 for damage to people’s belongings, while some wheelchairs can cost tens of thousands of pounds.

Another objective of the new proposed regulation is to give the Civil Aviation Authority, the regulator for aviation in the United Kingdom, more powers to fine airlines for breaches of consumer laws. 

No details on the amount or types of fines that airlines could pay under the power given to the CAA. Consumer confidence in airlines plummeted during the COVID-19 pandemic as airlines refused to pay out to passengers for canceled flights. New laws, aimed at giving regulators more power to enforce breaches of law, could help to restore some of this consumer confidence. Representatives for Airline UK, a body that represents the airlines, say they will be responding to the proposed changes but add that all their airlines try to ensure the most enjoyable and smoothest experience for the consumer. 

Daniel Morley

Daniel has always had aviation in his life; from moving to the United States when he was two, to family vacations across the U.S., and back to his native England. He currently resides in South Florida and attends Nova Southeastern University, studying Human Factors in Aviation. Daniel has his Commercial Certificate for both land and sea, and hopes to one day join the major airlines.

Ryanair Asks Italian Government for Cancellation of Boarding Charges

Vincenzo Claudio Piscopo
Verified

Edited By:

Parker Davis

A Ryanair 737 descends into Milan. (Photo: AirlineGeeks | Fabian Behr)

In 2004, a municipal surtax on passenger boarding fees was established by the Italian government. The purpose of this tax — one euro for each passenger boarded — is 20% for the benefit of the municipality in which the airport is located and 80% to find the necessary resources to strengthen security in airport facilities and main railway stations against international terrorism.

In truth, this tax only ends up in the pockets of airport operators and benefits passengers if the total amount of the tax exceeds 30 million euros annually. Any money below this threshold, it is ordinary tax revenue of the Italian State, able to be used for any purpose and for anyone’s benefit. The tax was suspended from August 2021 through December 2021 to assist airlines.

For these reasons, Ryanair has once again asked the Italian government to eliminate this tax for all Italian airports and all airlines until 2025. The removal of this tax “would be crucial in driving the recovery of Italian tourism and ensuring Italy remains competitive with other EU countries that are trying to attract airlines favoring the rapid recovery of the tourism sector,” the airline said in a statement. Boarding fees are due directly from the carrier to the airport management company, but it is the passenger who is the real recipient of the economic burden represented by boarding fees.

This aspect has been stressed several times by the Irish company, as it is convinced that the removal of this tax would give an important boost to regional connectivity to the benefit of millions of Italian passengers and local tourism. During the period when the tax was removed, Ryanair launched 13 new routes and over 20 additional frequencies on 17 existing routes, proving that it was a significant incentive.

The Irish low-cost company stated that if the Italian government eliminated the surcharge, it would invest at least $4 billion in the Italian network over the next four years, creating over 1,500 new jobs.

No Reimbursements to Covid-Positive Passengers

The Irish airline denies flight reimbursement to passengers who, having tested positive for Covid-19, cannot leave. Even when faced with the presentation of the positive molecular swab to prove the actual impossibility Ryanair considers Covid “not a serious illness”. This issue has been submitted to ENAC, the Italian Civil Aviation Authority, which may open proceedings against Ryanair, and which could lead to sanctions.

The problem is that Ryanair, due to a passenger’s problem, has limited itself to proposing to the customer the shifting (not free of charge) of the flight date. In Europe, unfortunately, there are no regulations that provide for this type of case and therefore the problem will have to be resolved by finding a bilateral agreement.

Vincenzo Claudio Piscopo

Vincenzo graduated in 2019 in Mechanical Engineering with an aeronautical curriculum, focusing his thesis on Human Factors in aircraft maintenance. In 2022 he pursued his master's degree in Aerospace Engineering at the University of Palermo, Italy. He combines his journalistic activities with his work as a Reliability Engineer at Zetalab.

Essential Air Service News — January 2022

Joey Gerardi
Verified

Edited By:

Ryan Ewing

The EAS Carriers discussed in this article (Photos: AirlineGeeks | Joey Gerardi)

Note from the writer: In the commercial aviation world, there is always news to report, and even the smallest airports have news to report on. This will be a different segment than the “EAS Round-Up” stories, which focus only on the Essential Air Service contracts that have been changed or renewed. This new segment will focus on other news that isn’t primarily centered on the contracts, although it might touch on it from time to time. – Joey Gerardi

New Partnerships

Denver Air Connection is a Colorado-based airline that is well known for operating the only passenger flights using a Metroliner in the United States, as well as being the only airline to fly commercial flights into the high-end ski town of Telluride, Colo. They are entering their 25-year according to the carrier, which has been operating flights since 1997, the airline teamed up with United Airlines in 2018 and has since been offering an interline agreement with the airline, seamlessly connecting passengers from DAC served cities onto the United network.

A Denver Air Connection Dornier328Jet near the American AstroJet livery in Denver (Photo: AirlineGeeks | Joey Gerardi)

But come March 2022, it will enter into an interline agreement with their second carrier, American Airlines. According to the press release which the carrier posted to their Facebook page, This new interline agreement will allow passengers to fly directly on American Airlines flights and have their checked bags transferred seamlessly onto flights with DAC. This new partnership will help immensely at the American hubs that they currently fly to, including Dallas/Fort Worth International Airport, Chicago’s O’Hare International Airport and Phoenix Sky Harbor International Airport, the last of which is only served on a seasonal basis from Telluride, Colo.

Record-Breaking Numbers

As the first month of the new year is coming to a close, airlines are finishing up calculating the total passengers they’ve flown the previous year. San Francisco-based Boutique Air had a great year in the tiny EAS community of Altoona, Penn. of which this was the airline’s first full year serving the community. According to Brian Kondrad, VP of Business Operations at Boutique Air, the airline flew 8,915 passengers in or out of the Altoona Airport in 2021. This was the first time the airport received over 4,461 enplanements since 2009.

One of Boutique Air’s Pilatus PC-12’s in Carlsbad, N.M. (Photo: AirlineGeeks | Joey Gerardi)

Despite the ongoing pandemic, the carrier managed to double the past record number and did it during their first year of service to Altoona as well. Kondrad said he is optimistic and plans to increase that number even further in 2022.

Route Termination Denied

On Jan. 15, AirlineGeeks reported that United Airlines via regional affiliate SkyWest would be terminating two EAS cities in northern New York state. SkyWest posted an application to “Terminate its current EAS contract,” to which the Department of Transportation swiftly declined. The DOT essentially said that if no airline is chosen within the 90-day period, SkyWest is set to leave, then they will be required to stay in both Ogdensburg and Plattsburgh until a new carrier is found and has begun service. So, the bidding process has begun and is moving at a very quick pace relative to other contract decisions.

A United Express CRJ-200 exiting the runway in Ogdensburg, N.Y. (Photo: AirlineGeeks | Joey Gerardi)

Usually, when a contract is set to expire, the process will usually take four to five months before — almost a month for prospective airlines to submit contracts for the city in question, then 25 days or so for the community and its leaders to comment on what airline they want to see chosen and to what cities.

Following that the city and its community comments are posted online and the DOT has roughly 20 days or so to decide which airline and destination will be chosen for the community. Once the DOT decides what airline will serve, the chosen airline will have to begin services to the community when the contract begins, which by this point is usually somewhere 60-90 days away.

On the Order Prohibiting Termination for Plattsburgh, which was released and decided on Jan. 21, the DOT also requested proposals from airlines that would like to serve the community next. But the deadline for airlines was only six days away on Jan. 27, of which only four working days, only a single airline submitted a proposal for Plattsburgh. It is unclear whether this lack of airlines is due to the insanely short amount of time for proposals to be submitted, or another outside factor.

Nevertheless, with Cape Air being the only airline that submitted a bid, it is essentially a lock that the airline will serve Plattsburgh once again. Cape Air last served in 2010 when they lost the EAS contract to Colgan Airways and U.S. Airways Express. In the 12 years since Cape Air left Plattsburgh, the airline saw service from U.S. Airways Express on Colgan, followed by Alaska-based PenAir until that airline collapsed in 2018, at which point United Express on SkyWest began service.

So after 12 years and millions of dollars in renovations to the terminal to entice more air service, the airport will once again find itself with an 8-9 seat propeller aircraft to Boston with Cape Air. Allegiant still serves the airport at least twice weekly, and Spirit stopped service in the early days of the Pandemic.

In Ogdensburg, the DOT gave airlines a little bit more time, but still not much. Airlines have until Feb. 10 to submit their EAS proposals for Ogdensburg, but until an airline is chosen, SkyWest is required by law and binding contract to serve both communities until another airline is chosen for the contract and begins flights.

Sky High Completion Rates

Southern Airways Express took over the EAS contract in the Nebraskan community of Chadron back in June 2021, and since then the airline has completed the flights, all of them. The carrier has announced a 100% controllable completion rate for their flights to and from Chadron, meaning not due to weather, ATC issues or any other factors they can’t control. The airline didn’t cancel a single flight due to maintenance or crew issues in the first six months of service to the community.

SAE showing off their new plane in Chadron back in Dec. of 2021 (Photo: Southern Airways Express)

The carrier received its first of three King Air 200s at the end of December and is awaiting governmental paperwork and approval to fly it. But until that day happens, it will continue flying the Chadron flights on the Cessna 208 as they have successfully since June 2021.

Joey Gerardi

Joey has always been interested in planes for as long as he can remember. He grew up in Central New York during the early 2000s when US Airways Express turboprops ruled the skies. Being from a non-aviation family made it harder for him to be around planes and would only spend about three hours a month at the airport. He was so excited when he could drive by himself, the first thing he did with his driver's license was get ice cream and go plane spotting for the entire day. He graduated from Western Michigan University in 2022 with a B.S. in Aviation Management & Operations and a Minor in Business, and currently works for a major airline in his hometown.

China Airlines Orders Four Boeing 777F Freighters

Charlotte Seet
Verified

Edited By:

Ryan Ewing

A China Airlines Cargo Boeing 777F freighter. (Photo: China Airlines)

With its team of approximately 800 cargo employees worldwide, China Airlines was able to continually expand its freight network that eventually led to the China Airlines Cargo business soaring past new heights, even so making last year the best-ever year in the operation’s 62-year history – as air cargo revenue was up 186 percent above the pre-pandemic year of 2019, which nearly balanced out a 96 percent drop in passenger revenue.

This was all made possible because the airline switched to a cargo-centric business model that enabled its fleet of 21 freighters to be fully utilized, China Airlines kept the continuity of supply for economic growth goods and everyday necessities ranging from auto parts, semiconductor chips to actual vehicles and high-precision wafer machinery, amidst the usual epidemic supplies such as masks and personal protective equipment.

Cargo Focused, Cargo Ready

Currently, China Airlines hails as the fifth largest air cargo carrier in the world and having undoubtedly seen the positive effects of air cargo, the airline has decided to continue mounting heavier focus on its cargo operations – but it would require much more than its current fleet of 18 Boeing 747F and three 777F freighters.

This is why China Airlines has decided to purchase four new Boeing 777F freighters to aid in the effort of capturing new market opportunities as air cargo demand rapidly grows around the globe. This ongoing fleet acquisition program will boost operating performance by balancing network development and market movements against the aircraft replacement schedule.

“The 777 Freighter has played a critical role in our efforts to maintain profitability during the pandemic, and these additional airplanes will be an integral part of our long-term growth strategy,” said China Airlines Chairman Hsieh Su-Chien in a press release. “We are excited to add more 777 Freighters due to their operational efficiency and reliability. Our fleet modernization program will enable us to deliver added value to our customers, especially as the global supply chain continues to evolve.”

China Airlines had already begun taking delivery of six 777F freighters in December 2020. Three have been delivered so far with two more slated for 2022 and one more lined up in 2023; delivery of the four newly ordered 777F freighters will commence in 2023 and be completed in 2024.

Rapidly Rising

It definitely is a smart move made by the Taiwanese flag carrier to expand its freighter fleet, as besides the last year being a blooming year of records for its cargo business – it was just as a booming year for Taiwan’s exports as well as it rose a record-high of 29.4 percent.

And considering that the 777F freighter is currently the world’s largest twin-engine freighter with a maximum revenue payload of 102 tonnes, as well as being slightly more environmental with a 17% reduction in fuel use and CO2 emissions per tonne compared to prior generation airplanes – the freighter then allows for China Airlines to make lesser stops on long-haul routes, further reducing associated expenses such as landing and parking fees.

Additionally, the main cargo hold can be fitted with cargo pallet restraint systems used for carrying semiconductor machinery and engines, providing high-value cargo such as precision instruments and temperature-controlled goods with optimal carriage services – going in line with what China Airlines have been transporting and much more.

Charlotte Seet

Fascinated by aircraft from a very young age, Charlotte’s dream was to work alongside the big birds one day. Pursuing her dream, she went on to achieve her diploma in Aviation Management and is currently working on her degree in Aviation Business in Administration with a minor in Air Traffic Management. When she’s not busy with school assignments, you can find her aircraft spotting for long hours at the airport. In Charlotte’s heart, the Queen of the Skies will always be her favorite aircraft.
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