Airbus Seeks to Outdo Boeing in China, Cheap Flights a Thing of the Past, And More
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Here are the exciting aviation industry updates for today. Let’s get started.
Boeing Offers Up to $10,000 Bonuses in Search for Scarce Talent
Boeing is offering bonuses of up to $10,000 to attract talent for touch-labor positions in South Carolina and Puget Sound. In Charleston, the company is offering $5,000 signing bonuses for experienced painters and interior installers to stabilize and increase the production rate of 787s to 5/month by the end of this year and 10/month by 2025/26.
In Puget Sound, the company is offering payouts of up to $10,000 to current employees who refer experienced aerospace workers to job openings in various categories.
The move comes as industry analysts warn of workforce shortages and training as the largest headwind facing the sector. source
China's First Cargo-Focused Airport Opens First International Route to Europe
China's first cargo-focused airport, Ezhou Huahu Airport, has opened its first international route with a Belgium-bound all-cargo aircraft carrying 100 tonnes of freight.
The route will provide two weekly round-trip cargo flights between China and Europe, adding 400 tonnes of air express capacity. SF Airlines, China's largest air-cargo carrier, is the operator of the aircraft.
The airport, which began operation in July 2022, is expected to open 40 domestic and four international freight routes by the end of 2023. On the same day, SF Airlines opened its Ezhou Base to provide services for the company and other airlines in the future. source
Volcano Eruption Posing Risk to Air Traffic
The recent eruption of the Shiveluch volcano on the Russian peninsula of Kamchatka caused the largest ashfall in 60 years, and the highest red alert level has been declared for air traffic due to the serious threat posed by volcanic ash clouds.
Volcanic ash can impair pilots' visibility and cause serious damage to flight controls, leading to engine failure. Despite the warning signs from previous incidents, microparticles about one-hundredth of a millimeter in diameter remain in the air and are barely distinguishable from water vapor clouds.
However, improvements in satellite imagery and the creation of Volcanic Ash Advisory Centres (VAACs) are helping to mitigate the risks to air traffic. source
Boeing's 737 Delivery Goals Achievable Despite Temporary Pause, Says Moody's
Boeing's target to deliver between 400 and 450 of its 737 narrowbody aircraft this year "remains achievable" despite a production issue that temporarily paused handovers to airlines.
Credit rating agency Moody's believes the plane maker will meet its goal of delivering 410 of its 737s in 2023 because the number of 737 Max aircraft to be delivered that requires investigation is "relatively modest."
Moody estimates that the number of 737 jets in inventory subject to inspection and remediation before delivery this year is less than 100. Boeing recently halted deliveries of some of its 737 Max due to a production issue on the rear end of some aircraft. source
Airbus Seeks to Outdo Boeing in China
Airbus has announced plans to double the capacity at its A320 family assembly plant in Tianjin and strengthen its presence in China as it seeks to widen its lead over rival Boeing in the country's aviation market.
During a recent state visit to China by French President Emmanuel Macron, Airbus said it would build a second assembly line at the Tianjin plant and expand its access to the world's second-largest aviation market, which is set for significant growth in the coming years.
Airbus predicts that China's air traffic will grow by 5.3% annually over the next two decades, significantly faster than the world average. source
Copa Airlines to Increase Network of Destinations and Improve Fleet in 2023 Expansion
Copa Airlines, a Latin American carrier, has revealed its expansion plans for 2023. The airline will focus on strengthening its primary connection center in Panama City, the Hub of the Americas®, with an increased network of destinations, flight frequencies, and a growing fleet of aircraft.
The airline also plans to refurbish the training fleet of the Latin American Aviation Academy and acquire a fifth flight simulator B737MAX to enhance the training of its pilots.
Copa Airlines aims to transport 16.1 million passengers by the end of 2023, with an 11% growth in the number of passengers compared to 2022. source
Turkish Airlines Reveals Ambitious Plan to Double Fleet Size to 800 Aircraft by 2033
Turkish Airlines has unveiled its fleet plans for the next decade, aiming to have 800 aircraft by its 100th anniversary in 2033, double its current fleet size.
The airline plans to expand its passenger network to 400 destinations, double passenger capacity by 2033, and service 170 million passengers compared to over 85 million in 2023.
Turkish Airlines also plans to double transported cargo volume, positioning Turkish Cargo among the top three cargo carriers globally by 2033. The airline will expand its fleet to 435 aircraft by 2023 and establish its low-cost arm AnadoluJet as a separate subsidiary. source
End of an Era: Cheap Flights a Thing of the Past in the Age of Decarbonization
The era of cheap air travel is coming to an end as airlines face a huge decarbonization challenge and tightening climate-compliance laws. Two new reports highlight the fact that rising ticket prices are the new reality of air travel.
The European Union’s Emissions Trading System (EU ETS) and the unit price of carbon emissions are causing significant changes in the aviation industry, with the cost of reaching net zero by 2050 expected to be €820bn.
As the operating profits of airlines decrease due to the changes to the EU ETS, ticket prices will have to increase, leading to inevitable demand destruction. source
Etihad Cargo Signs MOU with SF Airlines for Enhanced Airfreight Connectivity
Etihad Cargo, the airfreight division of Etihad Airways, has signed a Memorandum of Understanding with SF Airlines, a cargo carrier headquartered in Shenzen, China, to increase its presence in the Chinese market.
The deal will enable Etihad Cargo's customers to benefit from SF Airlines' extensive distribution capabilities in China, while SF Airlines will benefit from Etihad Cargo's global network.
As part of the agreement, both airlines will operate flights to each other's main operating hubs, allowing for greater connectivity and choice in airfreight forwarding in their respective regions. The partnership will commence on April 28, 2023. source
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