US DOT chief warns airlines to mitigate cancellations
May 25, 2023
The US Memorial Day weekend on 27 May that marks the start of summer travel will test the progress of airlines in preventing cancellations, US secretary of transportation Pete Buttigieg says, promising "pressure" if carriers show poor network management or customer service when disruptions happen. Airline travel in the summer in the USA, Buttigieg said on 23 May during a press conference, is poised to reach pre-pandemic levels. Cancellations and delays in mid-2022 were at "unacceptable proportions", exposing flaws in airline network management. There are signs of airlines reducing the rate of disruptions compared with the previous year, he says, noting that the US Department of Transportation has activated 169 new air traffic routes aimed at increasing network efficiency and reducing flight times along the East Coast. The DOT responded to the mass disruptions of mid-2023 by increasing scrutiny of how airlines respond to network troubles. The department aims to improve customer service for passengers "through collaboration where it's appropriate and pressure where it's necessary", the secretary says, adding "we are here to enforce passengers' rights and hold airlines accountable". “We are not going to prescribe every detail of customer service, but we are going to try to raise the bar,” Buttigieg says of the DOT's push for airlines to provide meals, lodging or refunds if carriers are to blame for disruptions. A proposed rule introduced by DOT for comment on 8 May would require airlines to compensate passengers stranded by a "controllable" flight cancellation. Trade group IATA has said the proposed rule "could raise unrealistic expectations among travellers". Numerous US airlines have reported record-high revenues in recent quarters but many of also noted that higher costs for fuel, labour and other expenses have offset those gains. In response to a question asked about any concerns from airlines that federal pressure could increase expenses Buttigieg says “these airlines can be perfectly profitable while treating passengers better”. Weather caused 58% of delays or cancellations between August 2022 and February 2023, according to data from trade group Airlines for America. Factors within the control of airlines including network and staff management caused 34% of the delays and cancellations during that time period. Around 8% of disruptions were caused by factors related to the National Airspace System (NAS) including shortages of federal air traffic controllers, but also a range of airspace management and safety issues.
EU court backs Ryanair over Covid-era Italian aid
May 25, 2023
The EU General Court has agreed with a challenge brought by Ryanair that pandemic-era state aid provided to airlines by the Italian government and approved by the European Commission contravened competition rules governing the internal market. The decision dates back to an October 2020 decision to the Italian government to provide €130 million ($140 million) in state aid to national airlines during the pandemic. Ryanair argues this aid contravened EU state-aid rules, with the court deciding that the European Commission had failed to provide effective reasoning setting out why the aid did not break internal market rules. "According to settled case-law, a decision not to initiate the formal investigation procedure in respect of notified aid must set out the reasons for which the Commission takes the view that it is not faced with serious difficulties in assessing the compatibility of the aid at issue with the internal market," the court said in a statement, annulling the decision, adding: "The General Court finds that that has not been done here." The ruling mirrors a decision brought earlier this month by the low-cost giant against pandemic-era funds provided to Lufthansa and SAS. Ryanair argues that governments across Europe "rushed through discriminatory subsidy schemes" for their former flag carriers that amounts to a €40 billion subsidy that has a distorting effect on Europe's air travel market. "One of the EU’s greatest achievements is the creation of a single market for air transport," says Ryanair. "The European Commission’s approval of the aid scheme limited to airlines with an operating licence issued by the Italian state went against the fundamental principles of EU law. Today's judgment confirms that the Commission must act as a guardian of the level playing field in air transport and cannot sign off discriminatory state aid under political pressure by national governments. The court's intervention is a triumph for fair competition and consumers across the EU."
Air Algerie seeks proposals to lease 10 aircraft
May 24, 2023
Air Algerie is seeking to lease 10 aircraft in addition to the 15 new jets it plans to buy from Airbus and Boeing. The North African carrier has issued a request for proposals to dry-lease four General Electric-powered Airbus A330-200/300s, two A330-900s, two Boeing 737-800s and two 737 Max 9s. This follows an earlier RFP from the carrier to purchase 15 new aircraft. This resulted in an agreement earlier this month to acquire eight Max 9s from Boeing, with deliveries scheduled to begin in 2027. Air Algerie has also signalled that it intends to buy five A330-900s and two A350-1000s from Airbus, although this agreement has yet to be signed. Fleets data shows that Air Algerie has a fleet of 51 aircraft in service and five in storage. These are primarily Boeing 737NGs and ATR turboprops. It also operates eight A330-200s.