Engine Crisis Forces Air New Zealand to Ground Korea Flights, and More

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Engine Shortages Force Air New Zealand to Exit Korean Market Until 2026

The ongoing engine availability crisis has forced Air New Zealand to indefinitely suspend its Incheon (ICN) to Auckland (AKL) route, with the final flight scheduled for March 29, 2025.

Up to 10 aircraft (4 Boeing 787s and 6 A320neo family) are currently grounded, representing 16% of the airline's jet fleet, with no improvement expected until early 2026.

The route suspension affects approximately 40,000 seats between the cities, leaving Korean Air as the sole operator of nonstop flights on this route.

Key Points

• Engine Crisis: Multiple aircraft groundings due to Rolls-Royce Trent 1000 and Pratt & Whitney GTF engine maintenance delays.

• Network Impact: Three weekly flights cancelled, affecting connectivity to an important Asian market.

• Alternative Options: Passengers can still reach Seoul via partner airlines through Singapore, Hong Kong, and Taipei.

• Fleet Constraints: 16% of the jet fleet grounded, forcing network optimization.

• Market Position: Korean Air becomes a monopoly operator on the route.

• Financial Implications: Engine issues are already impacting the airline's financial performance and profit outlook.

What It Means

I view this development as particularly concerning for Air New Zealand's Asian network strategy.

The timing couldn't be worse, coinciding with unprecedented U.S. carrier competition in the transpacific market and shifting alliance dynamics in Northeast Asia.

While temporary network adjustments are common, the extended timeline until early 2026 suggests a longer-term strategic challenge that could weaken the airline's competitive position in one of the key East Asian markets.

Other Key Aviation and Aerospace Industry Updates for Today 👇

2. Embraer Lands Biggest Ever Executive Jet Order as Flexjet Doubles Fleet

Flexjet has placed a record-breaking $7 billion order with Embraer for 182 private jets with 30 additional options, marking the largest deal in both companies' histories.

The order includes Praetor 600, Praetor 500, and Phenom 300E models, along with enhanced support services.

This purchase will double Flexjet's fleet size over the next five years, building on their 22-year partnership, during which Flexjet has already received over 150 Embraer aircraft.

3. British Airways Revamps Loyalty Program With New Spending Based Points System

British Airways has modified its controversial loyalty program after customer backlash.

Starting April 1, the renamed "British Airways Club" will award points based on spending rather than distance flown, requiring £20,000 annually for gold status.

To address concerns, BA now offers bonus points up to 550 per flight through 2025 and guarantees bronze status for 25 flights annually, silver for 50 flights.

The airline maintains these changes create a more equitable rewards system.

4. Alaska Airlines Doubles Anchorage Lounge Size in Major Airport Upgrade

Alaska Airlines has unveiled its newly expanded lounge at Ted Stevens Anchorage International Airport, doubling capacity from 65 to 140 seats and adding 2,600 square feet of space.

The upgraded facility features Alaskan-inspired design, local art, and premium amenities.

As part of its $60 million Great Land Investment Plan, the airline is also launching new nonstop routes to Detroit and Sacramento starting June 14, bringing summer destinations from Anchorage to 15.

5. Saudi Private Aviation Market Opens to Global Operators in Historic Move

Saudi Arabia's aviation authority will remove cabotage restrictions on foreign charter flights starting May 1, allowing international operators to run domestic routes within the kingdom.

This initiative is part of GACA's plan to transform the sector into a $2 billion industry by 2030, creating 35,000 jobs.

The strategy includes building six dedicated business aviation airports and nine terminals.

Saudi's private jet sector already saw impressive growth in 2024, with flight volumes up 24% to 23,612 flights.

6. European Airlines Adjust Zero Emission Strategy as Hydrogen Costs Rise

European airlines have significantly scaled back their hydrogen ambitions, with hydrogen now expected to contribute only 2% to emissions reduction instead of the previously projected 20%.

The aviation sector faces over €500 billion cost for reaching net-zero targets.

Despite this setback, progress continues with projects like ZeroAvia's FAA approval for their 600kW hydrogen-electric system and VINCI Airports' partnership to implement sustainable synthetic fuels by 2030.

7. FAA Invests Millions in Aviation Cybersecurity Research at Embry Riddle

The FAA has awarded Embry-Riddle's Center for Aerospace Resilient Systems a $1.3 million contract to enhance aviation cybersecurity through AI and machine learning.

The project, part of a larger $3.8 million research initiative, will develop virtual aircraft simulations to train AI models and study cyberattack impacts in controlled environments.

The program aims to improve cyber-anomaly detection systems while preparing students for leadership roles in aviation security.

8. Black Hawk Helicopter Gets Major Power Boost With New T901 Engine Tests

Sikorsky completed initial ground testing of the UH-60M Black Hawk with new GE Aerospace T901 engines in West Palm Beach, Florida.

The upgraded engines will boost power by 50% while improving fuel efficiency.

A joint US Army and Sikorsky test team verified system functionality, including fuel, electrical, and flight controls.

The modernization program aims to enhance the Black Hawk's range and cargo capacity, with the first flight planned for later in 2025.

9. Eve Air Mobility Partners With Brazilian Aviation Agency for Vertiport Testing

Eve Air Mobility has joined Brazil's ANAC regulatory sandbox for vertiports alongside PRS Aeroportos and VertiMob Infrastructure.

The 24-month project will test and develop solutions for eVTOL infrastructure, focusing on capacity, fire safety, noise compliance, and security measures.

This follows ANAC's recent approval of Eve's eVTOL airworthiness criteria.

Eve will contribute its expertise in aircraft development while working toward FAA certification.

10. Advanced Adaptive Cycle Engines Move Forward With Massive Defense Contracts

The Pentagon has awarded matching $3.5 billion contracts to GE Aerospace and Pratt & Whitney to develop next-generation adaptive-cycle engines through 2032.

The Next Generation Adaptive Propulsion program will create engines for the Air Force's sixth-generation fighter jet, with both companies building prototypes.

GE's XA102 and Pratt's XA103 engines promise improved fuel efficiency and thrust capabilities.

The program is currently paused pending review by the Trump administration.