ARC NEWS
Southwest legal and regulatory chief to move into advisory role
May 03, 2024
Southwest Airlines chief legal and regulatory officer and corporate secretary Mark Shaw is departing his role on 1 June, when he begins serving the US carrier as an executive adviser. He will be succeeded by chief corporate affairs officer Jason Van Eaton, whose new title will be chief regulatory and corporate affairs officer. Shaw joined Southwest nearly 24 years ago, notes the Dallas-based carrier. "As Jason and Jeff step into their new roles, the proven expertise and extensive experience they each possess, along with Mark's continued guidance, will result in a seamless and successful transition," states Southwest chief executive Bob Jordan.


​EU contacts 20 airlines over ‘greenwashing’ concerns
May 02, 2024
The European Commission has warned 20 airlines over “potentially misleading” claims about their environmental credentials, in a bid to bring practices back into line with EU consumer law “within 30 days.” European authorities, working in tandem with national consumer protection authorities, has written to the unnamed carriers over concerns that claims about the adoption of environmental projects and the use of SAF implies that emissions are reduced or eliminated – without reliable science to back this up. Furthermore, consumers are often charged extra for such environmental add-ons. Authorities believe this could amount to misleading actions and omissions, contravening EU law. The Commission, which is the executive body of the EU, declined to detail which airlines have been approached, telling Cirium that it was at the preliminary stage of the investigation. The national bodies involved are from Belgium, the Netherlands, Norway and Spain. Authorities take particular issue with the term ‘sustainable aviation fuel’ [SAF], which, they say, lacks justification over its climate impact. They are also worried about statements from airlines about moving towards net-zero emissions, despite the lack of independent monitoring or verifiable carbon reduction commitments. Industry group A4E says it recognises the importance of transparent information about sustainability and the road to net-zero. “This clarity benefits consumers, regulators, fuel suppliers, NGOs and other key stakeholders involved in our transition,” it comments. But it notes that airlines have outlined an independently produced roadmap towards net zero in the form on Destination 2050, with many carriers publishing verified interim targets. “We are particularly concerned about the remarks on Sustainable Aviation Fuel (SAF) and the requirement for a clear justification of their environmental impact,” says A4E. “The EU has implemented an ambitious SAF mandate, supported and endorsed by the European Commission, and the science supports that this is a more sustainable alternative to regular jet fuel.” Regulators are also raising concerned about online carbon calculators, which they state are unreliable and without scientific merit. Likewise, carbon comparisons between flights are likely also unverified, the Commission says. The Commission and national authorities have asked carriers to respond within 30 days, outlining their action to address these concerns and bring them into line with consumer law. “If the airlines involved do not take the necessary steps to solve concerns raised in the letter, [consumer protection] authorities can decide to take further enforcement actions, including sanctions,” says the Commission. “This action aims to ensure alignment of the commercial practices across the air travel sector with EU consumer legislation, by establishing the necessary substantiation and of communication of voluntary environmental claims.”


IATA warns supply chain, ATMs as March demand grows
May 02, 2024
Global passenger demand, measured in RPKs, increased by 14% year on year in March, the industry body says, while ASKs were up 12% resulting in global load factor notching up one percentage point to 82%. International demand rose 19%, which was matched by capacity, leaving loads flat at 82%. Meanwhile, domestic demand grew by 6.6% and ASKs by 3.4%, pushing load factor up 2.5 points to 82.6%. "Demand for travel is strong. And there is every indication that this should continue into the peak Northern Summer travel season," IATA's director general Willie Walsh says. "It is critical that we have the capacity to meet this demand and ensure a hassle-free travel experience for passengers. That means making urgent progress to resolve supply chain issues and for airports and air traffic management to be fully staffed and operating at maximum efficiency." Taking aim at supply chain and airspace constraints, Walsh adds that airlines "are fed-up of bearing the cost when delays and cancellations are the result of poor preparation in other parts of the value chain". By region, traffic growth was strongest in Asia-Pacific with RPKs up 38.5%, compared to capacity growth of 37.4%, pushing load factor up marginally to 85.6%. Despite the growth, IATA notes that China-North America flights are still only 16.5% of pre-pandemic levels as flight numbers between the USA and China are limited to 50 per week on each side. European carriers' traffic was up 11.6%, with ASKs up 11.4%, resulting in a minor increase in load factor to 79.9%. Middle Eastern airlines' RPKs rose 11% on ASK growth of 13.9%, causing load factor to contract 2.1 points to 77.5%. Latin American carriers reported a small rise in load factor to 84.3% as RPK growth of 19.7% overtook capacity growth of 18.3%. North American carriers increased capacity 14.8%, which was slightly ahead of a 14.5% rise in demand, which caused a minor fall in load factor to 84.7%. African airlines saw an 8.1% traffic increase while capacity was up 11%, pushing load factor down 1.9 points to 70.3%.


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