US Holds Firm on July 1 Altimeter Upgrade Deadline, Involuntary Denied Boardings Soared, and More
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No Extension for Airlines: US Holds Firm on July 1 Altimeter Upgrade Deadline Amid 5G Concerns
According to Transportation Secretary Pete Buttigieg, the US government will not extend the July 1 deadline for airlines to upgrade airplane altimeters in response to potential interference from 5G wireless technology.
Despite supply chain issues, Buttigieg urged airlines to continue retrofitting airplanes aggressively. The FAA also said it would not extend the deadline and warned airlines that non-upgraded planes would face operational restrictions.
The IATA expressed concern that failure to upgrade all aircraft by the deadline could result in disruptions during the peak travel season. The decision follows an agreement among major US wireless carriers to address aviation safety concerns and enable full use of the C-Band spectrum for 5G. source
India's Go First Files for Bankruptcy, Blames Failing Pratt & Whitney Engines
Go First airline has filed for voluntary insolvency resolution, citing its inability to meet financial obligations. Go First attributes its struggles to a growing number of failing engines supplied by Pratt & Whitney's International Aero Engines. These issues forced Go First to ground 50% of its Airbus A320neo fleet.
As per the airline, Pratt & Whitney's failure to comply with an emergency arbitrator's order to supply spare leased engines further exacerbated the situation, pushing Go First into bankruptcy. source
Involuntary Denied Boardings Soared in 2022, Affecting Over 25,000 US Airline Passengers
In 2022, US airlines involuntarily denied boarding to over 25,000 passengers, more than double the 2021 figure, according to the Department of Transportation.
Frontier Airlines had the highest rate of involuntary denied boardings. As airlines recovered from the pandemic, the number of bumped passengers also rose, exceeding pre-pandemic levels.
A large portion of denied boardings were voluntary, with Delta, Southwest, and American Airlines leading in numbers. The trend may continue in 2023 as some airlines plan to oversell more flights during the peak summer season to address flexible policies and empty seats. Passengers may negotiate for payouts or compensation if bumped from flights. source
NATO Air Defender Maneuver Set to Impact European Air Traffic in June
NATO's Air Defender maneuver in German airspace from June 12-24 is expected to impact European air traffic, with over 200 military aircraft participating. Large areas of German airspace will be temporarily closed to non-military planes, potentially causing delays and cancellations.
EU air passenger rights are regulated, but the compensation may not apply due to the exercise constituting extraordinary circumstances. For flights not covered by EU regulations, passengers must check the airlines' terms and conditions.
Germany's airspace will be divided into three sectors during the exercise, with no night or weekend flight drills. Disruptions at individual airports or flight routes cannot be ruled out. source
Manufacturing Defects Expose Strained Union Between Boeing and Spirit AeroSystems
Boeing's relationship with Spirit AeroSystems is under strain after a manufacturing issue was discovered at Spirit's Wichita plant in early April.
The issue, which has persisted for four years, affects 737 Max and P-8A Poseidon aircraft and requires Boeing and Spirit to resolve the problem before delivery. The resolution process will render about 9,000 seats (45-50 737s) unavailable during the busiest summer travel season since 2019.
A previously unreported 2018 lawsuit between the companies highlights the partnership's difficulties. Some retired Boeing executives believe that the 2005 divestiture of Wichita to create Spirit AeroSystems was a strategic mistake, prompting speculation about whether Boeing should reacquire the company. source
Rotor X to Showcase Dragon eVTOL Prototype at EAA AirVenture in July
Rotor X Aircraft is set to unveil the production prototype of its electric-powered Dragon personal air vehicle (PAV) at EAA AirVenture in Oshkosh, Wisconsin, this July.
The Dragon eVTOL, designed for adventure seekers, can reach speeds of over 60 mph and carry a passenger up to 250 pounds for around 20 minutes on a full charge. The aircraft features a ballistic parachute, reinforced landing gear, and automated takeoff and landing capabilities.
Sold as a kit, the Dragon comes with instructions, a video guide, and assembly tools. Rotor X is accepting $19,500 deposits and anticipates deliveries beginning in September. source
Lufthansa Optimistic About Summer Travel Demand Boosting Earnings
Lufthansa anticipates a strong summer travel demand to help achieve its full-year targets. The airline forecasts a significant YoY improvement in adjusted EBIT for 2023.
In Q1, Lufthansa reported an adjusted EBIT loss of €273 million, an improvement from a €577 million loss in the previous year and nearly meeting analyst expectations of €279 million.
Revenues increased by 40% to €7.02 billion in the first quarter, though slightly below the consensus estimate of €7.57 billion. source
German Air Taxi Developer Lilium Secures $250M Funding for First Manned Flight
German air taxi developer Lilium is set to raise $250 million, including funds from its largest shareholder Tencent Holdings, to finance the development of its electric vertical take-off and landing (eVTOL) jet.
The funding will cover the majority of the capital required for Lilium's first manned flight. Following the announcement, the company's U.S.-listed shares rose 43% in premarket trading.
Lilium, led by former Airbus executive Klaus Roewe, is targeting contracts with large corporations and private individuals and currently has 640 potential orders. Tencent-affiliate Aceville will receive 184.2 million Lilium warrants worth $1 per Class A share as part of the deal. source
Canada's Airline Market Crowded; Not All Can Survive Says Flair Airlines CEO
Flair Airlines CEO Stephen Jones predicts not all Canadian airlines competing in the crowded market will survive long-term. As Flair aggressively expands with a fleet of 21 Boeing 737s and a new base in Calgary, Jones highlights the importance of finding a niche within the market.
Flair aims to dominate the low-cost carrier model, targeting leisure travelers. Jones suggests WestJet, Canada's No. 2 airline, might struggle to find its niche as it refocuses on Western Canada and acquires Sunwing's airline and vacation divisions. source
First of 11 Boeing 737 MAX 8 Aircraft Delivered to Lynx Air
Canadian ultra-low-cost carrier Lynx Air has received the first of 11 Boeing 737 MAX 8 aircraft, leased from BOC Aviation Limited, with plans to use them in expanding their North American network. All the aircraft are part of the company's existing order and are powered by CFM LEAP-1B engines.
Lynx Air aims to serve 16 destinations across North America, offering over 45,000 seats by Summer 2023. Additionally, Lynx has signed a three-month ACMI charter contract with Global Crossing Airlines Group (GlobalX) to support its cross-border network expansion plans. source
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