Aircraft leasing firms in high demand as aircraft shortage continues......

More people to fly in 2024 than ever before as passenger revenue set to rise to US$717 billion

India, Saudi Arabia, and the UAE are emerging as key drivers of growth

Momentum builds behind SAF as key decarbonisation lever

The value of new aircraft deliveries is expected to rise by over 15% to c.US$100 billion in 2024, according to a paper published today by Avolon, a leading global aviation finance company. The delivery of over 1,450 new large commercial aircraft will help drive airlines’ passenger revenues up 12% to US$717 billion. Airlines’ net profit is projected to rise by 10% to US$26 billion.

4.7 billion people are expected to fly in 2024, more than any year in history. Aircraft values and lease rates rose sharply in 2023 as a structural undersupply of both narrowbodies and widebodies was reflected in the market, and further increases are expected in 2024. India, Saudi Arabia, and the UAE are emerging as key drivers of growth. Airlines and lessors that waited to commit to new orders to source new aircraft risk waiting into the next decade for supply.

Domestic airline capacity has reached 106% of 2019-levels globally, whilst the international recovery lags slightly, at around 95%, largely due the slower than anticipated rebound in the Chinese market and the knock-on impact this has had on previously busy routes in Southeast Asia.

Avolon’s 2024 Outlook: New Horizons paper, available here reviews the major trends in the aviation sector including the key findings:

·         Airlines: In 2023 airline revenues accelerated 22% compared to a 3% rise in global GDP. A return to positive cashflows has enabled airlines to repay US$57 billion of government debt provided during the pandemic. The continued reopening of Chinese international travel will provide positive momentum for airlines through the year.

·         Manufacturers: The undersupply of aircraft will take years to unwind, increasing the value of delivered aircraft, and extending their economic lives. The widebody production recovery is lagging behind narrowbodies resulting in a tighter market and longer wait times for twin-aisle aircraft.

·         Lessors: With both aircraft and capital in short supply, the role of lessors is strengthening. Investment grade lessors that have secured attractive new aircraft orderbooks are best positioned for the years ahead. Market lease rates took time to adjust to higher interest rates, but they have risen as much as 35% in 2023 with further growth expected this year.

·         Innovation & Sustainability: Momentum behind sustainable aviation fuel (SAF) is building and an estimated US$2 trillion of investment is required to scale up production to levels required to hit net zero goals. Flying will get more expensive this decade as airlines face tighter labour markets, increasing sustainability pressures, and engine durability challenges.

·         Risks: The macroeconomic outlook is normalizing as inflation trends downwards, but softer demand threatens in the U.S. and potentially Europe. Political risk will be in focus in 2024, with conflicts in the Ukraine and the Middle East and ongoing tensions between China and the West. The production ramp up by OEMs is vulnerable to supply chain pressure and regulatory oversight.

Andy Cronin, CEO of Avolon commented:  “The economic and social benefits of travelling will continue to drive aviation and underpin the resilience of our sector. Airlines’ growth in 2024 will be supported by around US$100 billion in new aircraft deliveries, with lessor orderbooks and capital supporting fleet expansion plans. While geopolitical and economic risks remain, the market backdrop as we start the year is likely to drive lease rates and residual values higher.”

Jim Morrison, Chief Risk Officer of Avolon commented:  “India, China and the Middle East are driving aviation’s growth. A structural undersupply of both narrowbodies and widebodies will take years to unwind. While new aircraft designs with step-change improvements in energy consumption will ultimately be required to decarbonise, in the short-term the industry must focus on scaling up sustainable aviation fuel production.”

The paper - co-authored by Avolon’s Chief Risk Officer, Jim Morrison, and SVP Portfolio Strategy, Marc Tembleque-Vilalta – makes eight forecasts: 

Fearless Forecasts 2024

Engine-related AOGs peak in June

New technology engine durability challenges have been major disruptions to airline operations. Design and production quality issues will continue to persist in the fleet for years, but the operational impact will diminish following the peak mid-year.

Four airline mergers close. Four don’t pass regulatory approval.

Mergers can provide synergies, reducing overhead and increasing revenue potential, but sometimes at the expense of passenger choice and affordability. Several of the dozen or so currently proposed mergers will be approved, but some will be blocked, as seen by the recent US court decision on the JetBlue-Spirit merger.

 

More new aircraft deliver to China than any year this decade

Boeing’s first 787 delivery to China in four years in December 2023 marked the re-opening of a key export market. 737 MAX deliveries will follow as Chinese airlines need to access new aircraft to renew their fleets and return to growth. China is too big a market to not be a priority for Boeing and Airbus.

 

Widebody production skylines will sell out to the end of the decade

Mega-orders have filled up the manufacturers’ skylines. Asian airlines late to order risk missing out. The remaining slots will soon be sold, leading to increased demand for lessor slots and used widebodies.

At least two new passenger aircraft variants will be certified in 2024

Likely candidates to enter service are the Airbus A321XLR and the Boeing 737-7. The 737-10 and 777-9 act as further stretch targets to our forecast.

 

The next clean-sheet large commercial aircraft enters service in 2036

Given the 10-years plus it will take from program green light to certification, Boeing and Airbus will need to commit to their next designs soon. No new clean-sheet designs for the next decade protects the investment case of today’s new-technology aircraft.

Two investment grade lessors receive rating upgrades, again

Investment grade is a key differentiator for scale lessors. Rating agencies will continue to acknowledge the resilience of the lessor business model with ratings upgrades.

A global framework for a SAF book-and-claim system is agreed

Airlines and lessors will have access to verified SAF credits enabling them to leverage SAF without having to transport liquid fuels over long distances. Agreeing a framework will attract the capital required to kick-start SAF production. 

United adds eight new routes this summer to cities in Alaska and Canada - including the only nonstop flight from Washington, D.C. to Anchorage, AK

U.S. mega carrier United confirmed it will offer more than 100 new flights to cities in the U.S. and Canada this summer, making it easier for travellers to connect to some of the most picturesque destinations in North America including Anchorage and Fairbanks, Alaska and Canadian cities like Calgary, Vancouver and Halifax.

Adventure Awaits: United Unveils New Summer Flights to Top Outdoor North American Destinations.

During the pandemic, the airline saw an increased demand from travellers wanting to get outdoors and explore scenic destinations like national parks and mountain towns.

United expects the trend to continue this year and is flying its largest schedule to Alaska in the past decade and significantly expanding flying between the U.S. and Canada. This summer, United will also have nearly 70 daily flights to national park destinations like Bozeman, MT, Jackson Hole, WY and Kalispell, MT.

United remains the largest U.S. carrier to Canada this summer with over 150 daily flights between the countries, serving nine destinations in Canada from all seven of its U.S. hub airports. Since the partnership between United and Air Canada expanded in 2022, United has grown by over 70% in the Canadian market, fueled by the shared goal to increase accessibility between the two countries. Today, United customers can quickly connect to 25 more Canadian cities on Air Canada – all while enjoying the benefits of the carriers' MileagePlus® and Aeroplan loyalty programs.

"We know people want to get outdoors this summer and United is making it easier than ever to get to fun destinations across North America," said Patrick Quayle, United's Senior Vice President of Network Planning and Alliances. "From adding non-stop service to places previously only reachable through multiple connections to leveraging our relationships with airline partners like Air Canada, we're giving customers lots of options to unlock new experiences."

Whether you're hoping to hike, stargaze or just take in the great outdoors, January is the ideal time to start charting your summer adventure. 

Europe’s greenest country, according to a new study.

Norway is Europe’s greenest country, with the second-highest renewable energy share on the list.

Austria comes in second as its citizens use public transportation the most.

Finland is third, while Iceland and Sweden take fourth and fifth place, respectively.

A new study by solar experts Hemsol reveals that Norway is the greenest country in Europe.

Image by Patrik Houštecký / Pixabay

The study used data from the European Environment Agency, the Odyssee-Mure Project and the Energy Institute to create an index with factors such as Renewable energy share, recycling rates, carbon dioxide emissions and more, to find out which European country can be considered the ‘greenest’ and most environmentally friendly.

Norway takes the crown thanks to its high renewable energy share recorded in 2022, despite having high carbon dioxide emissions per capita and large amounts of farmland area.

The country is among those that signed the Paris Agreement in 2016 and aims to reach net-zero carbon dioxide emissions between 2045 and 2055 while simultaneously reducing emissions of other greenhouse gases to near-net-zero in the same timeframe. The Norwegian government's commitment to sustainability does not just stop at its own country; in fact, there is an international commitment to ensure that many developing countries can access clean and renewable energy through both bilateral and multilateral partners, as well as pledging up to 3 billion Norwegian Krone a year to help save the world's tropical forests while improving the livelihoods of those who live off, in, and near them.

Second is Austria, which registered the highest share of passenger traffic on public transport in Europe, as its citizens are deciding to be more eco-friendly by not using their cars as much. Also a signatory of the Paris Agreement, Austria sees the second highest score in recycling rate but is sixth for carbon dioxide emissions.

Air Canada Honoured as a Top Employer for Young People in Canada 2024

Air Canada is proud to announce that it has been recognized as one of the top employers for young people in Canada in 2024, the first time the airline has received this recognition. This honour, awarded by Mediacorp Canada Inc., celebrates the nation's leading organizations for their commitment to developing and nurturing young professionals. through innovative and forward-thinking programs for young workers, including mentorship, training, career opportunities, and social responsibility.

"We are thrilled to be recognized as a top employer for young people in Canada," said Arielle Meloul-Wechsler, Executive Vice President, Chief Human Resources Officer and Public Affairs at Air Canada. "Air Canada has long been recognized for creating a positive work environment that supports employee development and fulfillment. As we continue implementing our global business strategies, fostering the next generation of people and talent remains a key priority, and we are proud to offer leading programs and opportunities to support their career growth."

Each employer was evaluated by the editors of Canada's Top 100 Employers based on the programs they offer to attract and retain younger workers. These include benefits such as tuition assistance and the availability of co-op or work-study programs, mentorship and training programs, career management programs, such as initiatives that can help younger workers advance more quickly within the organization.

Air Canada was selected as one of Canada's Top Employers for Young People in 2024 based on several criteria, including:

Paid internships across a variety of disciplines (engineering, marketing, business.

Offering a buddy system to help young professionals integrate into the organization, as well as numerous professional development opportunities.

Air Canada has recently been honoured with a series of awards for its people, culture and HR programs. Other recognitions include:

One of the Achievers 50 Most Engaged Workplaces for the sixth consecutive year

One of Montreal's Top Employers for 2023 by Mediacorp Canada for the 10th consecutive year

One of Canada's Best Employers 2023 by Forbes for the eighth consecutive year

Winner of the 2023 HRD Innovative HR Teams Award for Forward-Thinking HR Programs

IATA 2024 calendar of events

2024 Calendar of IATA Events has been released....regardless of your area of expertise, there is an IATA event that you absolutely cannot afford to miss!

Boeing's MAX production issues ripple across aerospace industry

Boeing's troubles with its 737 MAX jets are upending the aerospace industry's 2024 plans,

changing airlines' fleet and expansion goals as U.S. regulators froze production of the best-selling jets.

The FAA ramped up scrutiny of Boeing after a frightening Jan. 5 incident when a cabin panel tore off of an Alaska Airlines jet mid-flight. The plane landed safely with only minor injuries to people on board - but that experience has forced the industry to grapple with problems with Boeing's manufacturing and quality control processes.

The FAA late Wednesday froze increases in production of the single-aisle 737 MAX due to the issues, which have frustrated executives dependent on Boeing, one of only two major global plane manufacturers.

"Boeing needs to get their act together," said American Airlines CEO Robert Isom. "It is hard enough running an airline. We need quality product, and that's what we demand."

The FAA's order means Boeing can continue producing MAX jets at its current monthly rate, but it cannot increase that rate. It offered no estimate of how long the limitation would last and did not specify the number of planes Boeing can produce each month.

The FAA's unprecedented intervention in production schedules could further delay some deliveries of new planes to airlines and hurt suppliers already reeling from an earlier MAX crisis and the pandemic.

Boeing CEO Dave Calhoun told Reuters on Thursday that he supported the FAA decision. "We all want safe airplanes. This is a safe aeroplane," he said in Washington, where he has been meeting with U.S. legislators.

Airbus opens first service centre dedicated to the entire lifecycle of an aircraft

The Airbus Lifecycle Services Centre (ALSC) has started its operations in Chengdu (China), offering solutions to manage the entire lifecycle of an aircraft. This centre is the first of its kind to cover, as a one-stop shop, the full range of activities from aircraft parking and storage to maintenance, upgrades, conversions, dismantling and recycling services for various aircraft types, as well as the controlled distribution of used parts from dismantling.

The Airbus Lifecycle Services Centre in Chengdu is certified by both the European Union Aviation Safety Agency (EASA) and the Civil Aviation Administration of China (CAAC). 

The Airbus Lifecycle Services Centre covers a surface area of 717,000 square metres and has a storage capacity of 125 aircraft. The site will progressively ramp up operations between now and 2025, directly employing up to 150 employees. The main buildings have obtained the LEED(1) (Leadership in Energy and Environmental Design) certification for their construction, which is a first step to reduce the environmental impacts of operations at the ALSC site.

“I’m glad to see the Airbus Lifecycle Services Centre enter into service in Chengdu,” said Cristina Aguilar, Airbus SVP Customer Services. “It echoes our purpose to pioneer sustainable aerospace and shows our approach to environmental responsibility across the entire aircraft lifecycle. Our service centre is a great example of Chinese-European cooperation in the development of the circular economy for the aviation industry.”

World's First Alcohol-to-Jet Sustainable Aviation Fuel Production Facility

LanzaJet, a leading sustainable fuels technology company and sustainable fuels producer, has joined government officials, industry leaders, and investors to celebrate the grand opening of LanzaJet Freedom Pines Fuels in Soperton, Georgia.

Freedom Pines Fuels is the world's first alcohol-to-jet (ATJ) SAF production facility and will begin producing 10 million gallons of SAF and renewable diesel per year from ethanol, using a range of sustainable, low carbon intensity ethanol, including from waste-based feedstocks, to substantially increase the amount of current SAF production in the United States.

"Today is testament to the conviction required by industry, government, and funders to advance innovation and stretch the boundaries of what is achievable to address decarbonization and tackle climate change. This is a historic milestone in a long history of firsts for LanzaJet, the United States, and the SAF industry globally. Our novel LanzaJet ethanol to SAF process technology is now deployed at our commercial plant in Georgia which will convert ethanol into drop-in SAF. As we start-up the plant, we will continue to refine our technology, while launching our efforts to advance new sustainable fuels projects globally. Between feedstock versatility, efficiency, and economics that enable scale in the US and globally, we stand ready to meet aviation's decarbonization goals established at the United Nations and country ambitions, such as the U.S. SAF Grand Challenge."

LanzaJet CEO Jimmy Samartzis said: "The Biden-Harris Administration is committed to harnessing the full potential of SAF as we continue to build a strong economy that is sustainable, resilient, competitive, and keeps rural places thriving. As we transition to SAF, this will not only create new climate smart commodity markets for American producers, but it will also help American companies such as LanzaJet corner the market of a valuable, emerging industry, while revitalizing rural communities like Soperton with agriculture front and center in the effort. LanzaJet's facility will help accelerate the SAF industry and provide new economic opportunities for producers for a more sustainable future."

U.S. Secretary of Agriculture Tom Vilsack commented:   "LanzaJet has reached a momentous milestone with the grand opening of a first of its kind sustainable aviation fuel plant right here in Georgia, continuing to take our state's clean energy economy to greater heights. I am thrilled to see the Inflation Reduction Act's clean energy investments in action, particularly the provisions from the AERO Act, a bill I introduced and championed to boost sustainable aviation fuel production and bring more clean energy jobs to Georgia. Georgia's emerging clean energy economy is making it clear that we do not have to choose between our ecology and our economy."

U.S. Senator Reverend Raphael Warnock said:  "I join Secretary Vilsack, Deputy Secretary Turk, Senator Warnock, Mayor Koon, Chairman Jennings, and local leaders in congratulating LanzaJet on this important milestone and their innovative efforts to make aviation more sustainable."

U.S. Senator Jon Ossoff commented:  "In the No. 1 state for business, innovators such as LanzaJet are finding the resources and support they need to grow and thrive alongside communities such as Soperton. Today's grand opening is another milestone in Georgia's emergence as a national leader in industries such as aerospace and innovation that are bringing unprecedented jobs and investment to all four corners of the state."

Georgia Governor Brian P. Kemp said: "SAF will play a critical role in meeting our net zero targets and especially in reducing aviation's emissions this decade. It is the only viable solution for long-haul flights. Today's opening is a true milestone in the development and commercial production of SAF using LanzaJet's ethanol to SAF process technology. This project acts as the blueprint for using this innovative technology right here in the UK, starting with Project Speedbird, and shows how quickly the US is moving ahead. We must continue to work with the UK Government to encourage investors to put money into SAF production and meet its own targets of having five commercial-scale SAF plants under construction in the UK by 2025. The Government has already started on this journey, and we welcome this, but what we need now is pace."

Sean Doyle, Chairman and CEO, British Airways stated:  "The LanzaJet ethanol-to-jet fuel plant in the US is a demonstration of how government support and investment in green technologies can help make aviation more sustainable. At IAG, we look forward to bringing LanzaJet's technology to the UK, with Nova Pangaea, to help the UK meet its target of five Sustainable Aviation Fuel plants in construction by 2025."

Luis Gallego, CEO, International Airlines Group (IAG) said:  "LanzaJet Freedom Pines Fuels is proof of the energy transition accelerating in real time. We are demonstrating the ability to establish secure supply chains domestically, create new jobs locally, and produce sustainable aviation fuel globally. This historic facility is an important pillar of a growing SAF economy in the United States and is a significant decarbonization milestone in the world."

Jennifer Holmgren, LanzaJet Board Director and Chief Executive Officer, LanzaTech commented:  "It is a great pleasure to hear about the remarkable progress that LanzaJet has achieved with their first commercial plant despite the challenging business environment. Mitsui will continue collaborating with all stakeholders to support LanzaJet's activities and is extremely proud to be a part of such a strong partnership. We believe this new facility will demonstrate the robustness of LanzaJet's innovative ATJ technology, and Mitsui aims to develop commercial projects with partners around the globe to contribute to creating sustainable futures."

WestJet receives prestigious recognition as one of Canada's best employers by Forbes

WestJet has announced its latest achievement, securing a coveted position among Canada's best employers, according to Forbes Magazine. The prestigious recognition is based on a comprehensive survey encompassing more than 40,000 employees across various Canadian companies and institutions.

"We are honoured to be recognized by Forbes Magazine as one of Canada's best employers. As WestJet continues to soar to new heights, this recognition serves as a testament to our dedication to providing fulfilling employment opportunities and ensuring workplace satisfaction across the many diverse roles that are essential to delivering the friendly and reliable travel experiences Canadians know and love," said Angela Avery, WestJet Group Executive Vice President and Chief People, Corporate and Sustainability Officer.

In partnership with Statista, the Forbes Magazine survey identified standout employers across the nation, placing WestJet in the elite ranks of the top fifteen employers in the transportation and logistics sector.

Integral to WestJet's people-first culture is the airline's robust employee-driven community investment portfolio, keen focus on employee engagement and diversity and inclusion initiatives as well as its innovative approach to talent development. Additionally, the airline revived its employee profit share program in 2023, reaffirming the organization's commitment to fostering a collaborative culture as the airline returns to profitability.

"It is our unwavering dedication to safety above all and our caring attitude for each other, our guests and our business that binds more than 12,000 WestJet Group employees together as a united team in pursuit of a common goal of providing affordable and accessible leisure travel to millions of Canadians every year. WestJet remains committed to building a workplace that not only attracts top talent but also nurtures and retains skilled professionals who are essential to WestJet's success," adds Avery.

French Ministry of Interior orders 42 H145 helicopters

The French Armament General Directorate (DGA) ordered 42 new H145 helicopters at the end of 2023, on behalf of the Ministry of Interior, with deliveries set to start in 2024. Of these 42 helicopters, 36 are destined for the French rescue and emergency response agency, Sécurité Civile,  while the French law enforcement agency, Gendarmerie Nationale, will use six.  The contract includes an option for a further 22 H145s for the Gendarmerie Nationale and a range of support and service solutions from training to spare parts, as well as a complete initial support package for the aircraft.

“We have a long standing relationship with the Gendarmerie Nationale and the Sécurité Civile and I am very proud that we will add another chapter to our shared story,” said Bruno Even, CEO of Airbus Helicopters. “The H145 has already proven its worth with the Sécurité Civile conducting many rescue missions in the difficult mountainous environment of the French Alps”, he added. “The H145 is operated by many law enforcement agencies across the world. The Gendarmerie will benefit from a state-of-the-art helicopter equipped with the latest mission systems,” he explained.

The Sécurité Civile currently operates four five-bladed H145s, ordered in 2020 and 2021. The 36 H145s will progressively replace the 33 EC145s currently in operation for rescue and air medical transport services, throughout France.

The six H145s will initiate the renewal of the Gendarmerie’s fleet, composed of Ecureuils, EC135s and EC145s. They will be equipped with an electro-optical system and a mission computer to perform the most demanding law enforcement missions.

Certified by the European Union Aviation Safety Agency in June 2020, this new version of Airbus’ best-selling H145 light twin-engine helicopter brings a new, innovative five-bladed rotor to the multi-mission helicopter, increasing the useful load by 150 kg while delivering new levels of comfort, simplicity, and connectivity. Powered by two Safran Arriel 2E engines, the H145 is equipped with full authority digital engine control (FADEC) and the Helionix digital avionics suite. It includes a high performance 4-axis autopilot, increasing safety and reducing pilot workload. Its particularly low acoustic footprint makes the H145 the quietest helicopter in its class. Today, Airbus has more than 1,675 H145 family helicopters in service around the world, logging a total of more than 7.6 million flight hours.

easyJet places engine order with CFM

easyJet has selected CFM as its engine supplier to provide 314 engines to power its firm order of 157 Airbus aircraft, together with spare engines and secured pricing for 200 engines for the 100 purchase rights. This new agreement continues the long-standing partnership between easyJet and CFM which has been in place since 1995 and its entire current fleet is powered by CFM engines.  

The agreements for new aircraft and engines form part of easyJet’s fleet renewal and upgauging plan but also bring with them cost benefits and sustainability improvements to the business. The aircraft order, comprised of 56 A320neo and 101 A321neo aircraft, is for deliveries between FY2029 and FY2034 following shareholder agreement in December 2023.  

The A320neos and A321neos will be powered by the CFM LEAP-1A engines. The adoption of the more efficient new technology aircraft and engines is also a core component of easyJet’s path to net zero carbon emissions. The new engine deal is a key component in the ongoing modernisation of the easyJet fleet and deliver between a 13% to 30% unit fuel burn efficiency improvement, depending on which aircraft are replaced. Alongside this, the new aircraft are significantly quieter, with half the noise footprint of the older aircraft they are replacing.

AirAsia X Fourth Quarter 2023 and Full Year Preliminary Operating Statistics

AirAsia X Berhad has released its operating statistics for the Fourth Quarter of 2023 and the Full Financial Year Ended 31 December 2023. 

In the fourth quarter of 2023, the Company carried a total of 890,289 passengers, 2.6 times year-on-year (“YoY”), and achieved an encouraging Passenger Load Factor (“PLF”) of 82%, up by three percentage points, even as seat capacity multiplied by 2.5 times as compared to the same period in the preceding year. This came as the Company ramped up its fleet size and network reach over the past 12 months, further buoyed by the peak year-end holiday and travel season. 

During the quarter under review, AirAsia X Malaysia’s number of operational aircraft stood at 16 aircraft as opposed to six aircraft for the quarter ended 31 December 2022 (“4Q22”), delivering increased flight frequencies and network ramp-ups. This ultimately boosted the Company’s Available Seat Kilometres (“ASK”) capacity by 2.8 times YoY to 4,770 million, tracked by RPK growth of close to three times YoY, standing at 3,839 million. 

In terms of network, the Company launched a new route to Hong Kong (seven times per week) in the month of December, supported by immense demand from the market. In 4Q23, the Company increased its flight frequencies to Seoul (to 12 times per week), Sydney (11 times per week), Melbourne (12 times per week), and Bangkok (seven times per week), bringing the total weekly flight frequency to 144 flights by year-end. 

On a full-year basis, AirAsia X Malaysia posted a healthy PLF of 80% up by two percentage points against the preceding year. Despite a 6.6 times growth in seat capacity, the Company carried over 2.8 million passengers, reflecting a YoY growth of about 6.8 times. With the increase in the number of operational aircraft and the number of flights to 9,799 flights for the year, AirAsia X Malaysia’s ASK capacity surged by 7.5 times to 15,604 million. In 2023, AirAsia X Malaysia served a total of 22 destinations, with a total of eight routes launched over the 12-month period. 

Our associate, AirAsia X Thailand recorded a robust PLF of 86% in 4Q23, as the number of passengers carried grew by about 1.7 times YoY to 387,217 passengers, while seat capacity increased by 1.8 times YoY to 450,979 seats during the quarter. In terms of network, AirAsia X Thailand resumed services to Sapporo,  ending the quarter with 52 flights per week. On a full-year basis, AirAsia X Thailand’s PLF stood at 83%, with over 1.3 million passengers carried in total, up by about 4.5 times compared to the period between January - December 2022. In 2023, AirAsia X Thailand serviced a total of six routes, with its network now encompassing core markets in Japan, South Korea, Australia and China. 

AirAsia X's total fleet size stood at 18 A330s as of the end of 31 December 2023, with 16 aircraft activated and operational, while AirAsia X Thailand's total fleet size stood at eight  A330s, with seven aircraft activated and operational.

Saab receives order to produce T-7A fuselage systems

Saab has received an award from Boeing to produce T-7A aft fuselage systems. The order value for Saab is USD 101.7 million (approximately SEK 1 billion) and the order was booked in the fourth quarter 2023.

The T-7A aft fuselage systems will be produced at Saab’s advanced manufacturing facility in West Lafayette, Indiana. 

“What we are building is the most modern and forward-looking advanced pilot training system on the market and I am confident that this is a programme that will deliver aircraft for many years to come. This order ensures the ramp-up of serial production to meet both current and future customers' increased needs,” says Lars Tossman, head of Saab's Aeronautics business area.

The order from Boeing comes after the first two T-7A Red Hawks successfully arrived at U.S. Air Force bases for developmental flight tests. The first T-7A went to Edwards Air Force Base and the second went to Eglin Air Force Base. 

Lynx Air will start a new route between Los Angeles International Airport and Montréal

Lynx Air is adding a route between Los Angeles International Airport and Montréal-Pierre Elliott Trudeau International Airport from 11th July.  Initially, there will be three non-stop flights per week, growing to a daily service to and from Los Angeles as of August 11, 2024.

“This new route will be welcome news for travellers to California and for American visitors eager to explore the province of Québec and elsewhere in Canada. By this summer, Lynx will serve four destinations from Montréal flying more than 11,700 seats to or from Montréal each week,” said Vijay Bathija, Chief Commercial Officer of Lynx Air. “California is an exciting entertainment and recreation hub and we can’t wait to connect travellers to it and to Montréal as a vibrant arts and culture destination while boosting tourism by offering a great flying experience at an ultra-affordable price.”

“ADM Aéroports de Montréal is delighted that Los Angeles has been added to Lynx Air’s list of destinations,” said Stéphane Lapierre, Vice President, Airport Operations and Air Services Development, ADM. “This is a new gateway to America’s second-largest city, where travellers will have the opportunity to discover its many beaches, as well as a destination rich in history and culture, marked by the world of cinema. With the addition of this route, Lynx Air is continuing to develop the low-cost market from Montréal, which will appeal to a large segment of travellers.”

"Los Angeles World Airports congratulates our partners at Lynx Air on their newest route from Montréal (YUL) to LAX, adding to the list of offerings that will connect Canadians to the City of Angels and the rest of the world," said Becca Doten, Chief Airport Affairs Officer of Los Angeles World Airports. "We are thrilled to welcome this new flight to Los Angeles and thank Lynx Air for choosing to expand their network at our airport."

Airbus Helicopters delivers solid sales performance in 2023

In 2023, Airbus Helicopters logged 410 gross orders (net: 393), highlighting a steady market recovery with a strong performance this year for the light twin and medium twin helicopters. Orders came from 179 customers in 47 countries. The Company delivered 346 helicopters in 2023, resulting in a preliminary 54% share of the civil and parapublic market.

“Airbus Helicopters’ order intake in 2023, with an increase bordering 10 percent in units in  comparison to 2022, highlights its stable growth despite the ongoing global context of inflation and geopolitical instability,” said Bruno Even, CEO of Airbus Helicopters. “It’s also a testament to the versatility of our products on both the civil and military market and I’d like to thank our customers for continuing to entrust their critical missions to Airbus Helicopters,” he added.

2023 was a year of many firsts, with the first flight of the DisruptiveLab demonstrator featuring a new aerodynamic architecture aimed at reducing fuel consumption and the first flight of the NH90 Sea Tiger, the state-of-the-art anti-submarine warfare helicopter for the German Navy. The Company also welcomed a new member to the Airbus family when the Spanish Navy took delivery of their first H135 helicopters.

“Defence and security is one of Airbus Helicopters’ strategic priorities and we continue to innovate and develop to increase mission capabilities for our customers. The German armed forces signing the largest H145M contract with up to 82 light attack helicopters at the end of 2023 is testimony to that. On the development side, the H175M successfully performed flight demonstrations in the extreme hot and high conditions of the desert in Saudi Arabia while the VSR700 demonstrated its performance during sea trials from a French Navy multi-mission frigate. We also continue to expand our UAS portfolio with the acquisition of Aerovel which will allow us to offer our customers additional mission capabilities with manned-unmanned teaming,” continued Even.

Global support contracts and the HCare offering continued to prove popular in 2023 both with civil and military customers. 140 new helicopters were covered by “by-the-hour” contracts bringing the total to 2760 helicopters.  

WestJet adding to fleet in 2025 through leasing of five new Boeing 737 MAX 8 aircraft

Additional aircraft furthers WestJet's leading narrowbody order book, enhancing capacity to fulfil network growth

WestJet announced the acquisition of five brand new Boeing 737 MAX 8 to its fleet, adding to the airline's already significant multi-billion-dollar investment in its orderbook. The airline expects to receive delivery of the aircraft in early 2025, after recently completing leasing agreements with China Development Bank Financial Leasing Co., Ltd. (CDB Aviation) for three aircraft and international aircraft leasing company, Avolon for two aircraft.

"We are adding these five aircraft to our 737 MAX family very soon and look forward to this additional capacity enhancing our already forecasted fleet expansion, further enabling our execution of providing affordable and diverse air travel options for our guests," said Mike Scott, WestJet Group, Executive Vice-President and Chief Financial Officer. "As Canada's coast-to-coast leisure champion and western home carrier, the continued expansion of our fleet in tandem with our low-cost foundation is a key accelerator of our growth strategy."

Combined with its existing order book, WestJet will now receive as many as 22 brand new Boeing 737 MAX airplanes before the end of 2025, and up to 62 additional airplanes of this type before the end of 2028. This makes WestJet's narrowbody order book the largest of any Canadian airline.

"CDB Aviation values our expanding relationship with WestJet and we are pleased to be able to support the airline's fleet expansion in an environmentally friendly manner as we lease these three new fuel-efficient B737-8 aircraft direct from our orderbook," stated Jie Chen, CDB Aviation's Chief Executive Officer.

"We're delighted to be expanding on our strong relationship with Westjet and are pleased to support WestJet's fleet expansion needs from our Boeing orderbook," said Paul Geaney, President and Chief Commercial Officer, Avolon. "We expect to see continued growth for the aviation sector in the coming years, including in North America, and are excited to provide a fleet solution to a strategic customer in the region."

OXCCU Hires Andrew Waters as Head of Commercial

OXCCU, a leading technology startup who are shaping the future of sustainable fuel, chemical and plastic production, appoints Andrew Waters as their new Head of Commercial. With over 10 years of experience in the chemicals and fuels sector, coupled with expertise in strategy execution, senior management, and market analysis, Andrew Waters will play a crucial role in leading the commercial operations and growth of OXCCU.

Prior to joining OXCCU, Andrew Waters had diverse experiences in the chemical, biochemical and oil and gas industries. He was employed at Johnson Matthey for ten years in a variety of technical and commercial leadership roles, including managing a portfolio of licensed technologies and catalysts. He also worked for the UK Government as the Head of Chemicals for the Department for Business and Trade (previously DIT) promoting investment into the UK chemicals sector and helping UK chemical companies to export. 

Manulife and Aeroplan Partner to Give Millions of Canadians Access to Rewards in New, First-of-its-Kind Canadian Partnership

              Manulife, one of Canada’s leading insurance providers, and Aeroplan, Canada’s premier travel loyalty program, are excited to announce a new, multi-year loyalty partnership. Through this first-of-its-kind agreement in Canada, the millions of Canadians who are eligible Manulife Group Benefits members will have the ability to earn Aeroplan points by engaging in behaviours and activities that encourage health and wellbeing.

This spring, Manulife will launch a modernized and upgraded benefits platform to offer members a digital-first user experience that integrates health, wellness and benefits into one place. With the addition of Aeroplan in early summer 2024, eligible Group Benefits members will be able to earn points for health and benefits-related activities, all while managing their overall wellbeing – from prevention to getting care – through an integrated and personalized experience. By engaging in health and wellness challenges, members will have the opportunity to earn points for completing healthy initiatives, like exercise minutes, mindfulness practices, and more. In addition, points will be rewarded for completion of educational courses and helpful benefits tips and tricks, like downloading the digital benefit card.

Latest results from United Airlines

United Airlines reported fourth-quarter and full-year 2023 financial results this week, showing how the mega-carrier diversified revenue strategy proved, once again, to be a critical, differentiated, competitive advantage. United's premium cabin saw an increase in revenue of 16% for the quarter year-over-year, while its Basic Economy offering again saw a substantial revenue increase of 20% for the quarter year-over-year.

United also benefited from cost convergence across the industry. This cost convergence resulted in a stronger relationship between United's unit costs and unit revenue performance. Combined with durable demand for travel and an increasing preference for United's reliable operational performance and premium offerings, the company delivered on its initial full year 2023 earnings per share guidance despite a wide range of headwinds.

"Our plans really came together in 2023, and I want to thank the United team for all of the hard work it took to get us there," said United Airlines CEO Scott Kirby. "Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible – and set new operational records for our customers," said United Airlines CEO Scott Kirby. "Looking ahead, we expect these trends to continue and United is incredibly well positioned to capitalize on them and to deliver on our short and long-term financial targets."

Southwest Airlines flight attendants approve strike action by 98%

Southwest Airlines flight attendants have endured more than five years without a new Collective Bargaining Agreement with Southwest Airlines, and they have had enough. Today, TWU Local 556, the union of Southwest Airlines flight attendants, announced results of members’ strike authorization vote. More than 98 percent of voting members authorized the TWU Local 556 Executive Board to call for a strike against Southwest Airlines.

This is the first time in the union’s history that flight attendants have taken a vote to authorize a strike against Southwest Airlines, and the results were resounding.

“Equity, equality and respect – those are the non-negotiables for our members,” Lyn Montgomery, president of TWU Local 556 and a career flight attendant, said. “Pay that sets a new industry standard is a necessity, absolutely, but so is our personhood being valued just as highly as that of management and other employees here at Southwest Airlines.”

Scheduling for on-call rotations, appropriate compensation for ground time, improved commuter policies, and the ability to have a safe place to sleep on overnights are among the contract improvements flight attendants need to see in their new contract, Montgomery explained.

Recent posts by flight attendants and TWU Local 556 contain the phrase: “Deceived. Devalued. Disrespected,” expressing the frustration that flight attendants have with members of management.

“When you are told at the negotiating table that certain work rule changes are off-limits and then you grant them to another workgroup, it’s clear that you do not value employees equally,” Montgomery said. “This is not just about job roles; at this point, our fight is about valuing our very personhood. Our employer has failed to implement even no-cost work rule changes that would improve our quality of life. While we battle for our earned value professionally, we find that we also fight to be valued as people. Even that seems up in the air with Southwest Airlines management today.”

Conducting a strike authorization vote is an important step toward striking, as outlined by Section 6 of the Railway Labor Act. If TWU Local 556 and Southwest Airlines cannot reach an agreement in federal mediation, the union could request to be released into a thirty-day cooling-off period, after which 21,000+ Southwest Airlines flight attendants would be free to strike the largest domestic carrier.

Airbus boosts ‘Make in India’, awards additional manufacturing contracts to Tata Advanced Systems Limited, Mahindra Aerospace Structures Private Limited

Demonstrating on its ‘Make in India’ commitment, Airbus has signed contracts with Tata Advanced Systems Limited (TASL) and Mahindra Aerospace Structures Private Limited (MASPL) to procure commercial aircraft components. 

Under the contract, TASL and Mahindra Aerostructures will manufacture metallic detail parts, components and assemblies for Airbus' A320neo, A330neo and A350 programmes. The two companies are already among more than 100 India-based suppliers that provide components and engineering and digital services for various Airbus programmes. 

“Airbus has made ‘Make in India’ front and centre of its strategy in the country. Our ambition is not only to support the growth of the Indian commercial fleet but also to grow the complete aerospace ecosystem here – and that includes developing and strengthening manufacturing and engineering capabilities from our Indian partners,” said Rémi Maillard, President and Managing Director of Airbus India and South Asia. “Tata Advanced Systems and Mahindra Aerostructures already contribute to our aircraft programmes, and the latest contracts increase our cooperation with them.” 

For Airbus, India is a strategic resource hub where the company is expanding its industrial footprint with aircraft assembly, component manufacturing, engineering design and development, MRO support, pilot and maintenance training as well as academic collaboration to foster human capital. 

Today, every Airbus commercial aircraft has components and technologies made in India, including the A220 Escape Hatch Door and the Flap Track Beams for the A320neo and A330neo aircraft. Currently, the company’s procurement of components and services stands at about US$750 million every year, and the latest round of contracts will add significantly to this. 

Airbus’ efforts to mature the wider Indian aerospace ecosystem includes the building of a Final Assembly Line for the C295 military aircraft in Vadodara under an industrial contract with TASL as well as training commercial pilots and maintenance crew.

Saab signs GlobalEye support contract with UAE

Saab and the United Arab Emirates (UAE) Ministry of Defence have signed a contract and Saab has received an order regarding in-service support for the GlobalEye Airborne Early Warning and Control (AEW&C) solution. The order value is approximately USD 190 million with a three-year contract period that runs until 2026.

The contract includes maintenance and logistics support, as well as training services.

“This agreement solidifies Saab’s role in ensuring that GlobalEye remains mission-ready. We look forward to further strengthening our partnership with the UAE Air Force and Air Defence and providing long-term local support,” says Carl-Johan Bergholm, head of Saab’s business area Surveillance. 

GlobalEye is an advanced multi-domain AEW&C solution with an array of active and passive sensors that provide long-range detection and identification of objects in the air, at sea and over land.

By providing real-time information to units in air forces, armies and navies, GlobalEye enables enhanced situational awareness of the surrounding areas and early detection of threats.