ARC NEWS
​Airline stocks tumble as new Covid variant prompts travel bans
November 29, 2021
Airline share prices have fallen sharply amid fears that a newly discovered coronavirus variant could disrupt global air travel again, after the UK put six southern African countries back on its red list and the EU proposed taking similar action.
The UK government announced late on 25 November that South Africa, Botswana, Lesotho, Eswatini, Zimbabwe and Namibia would be added to its travel red list from midday local time on 26 November. Direct flights from the six countries will be banned until 04:00 on 28 November while the hotel quarantine system is put back in place. UK nationals arriving before that time after visiting any of these six countries within the last 10 days must self-isolate at home for 10 days and take PCR tests on days two and eight. Non-UK/Irish residents will be refused entry to England from midday on 26 November if they have visited any of the red-list countries, unless their visit was during transit and they remained airside. "As part of our close surveillance of variants across the world, we have become aware of the spread of a new potentially concerning variant, which the UK Health Security Agency has designated a variant under investigation," states UK secretary of state for health and social care Sajid Javid. "We are taking precautionary action to protect public health and the progress of our vaccine rollout at a critical moment as we enter winter, and we are monitoring the situation closely." British Airways says it will "be contacting affected customers and colleagues in South Africa and will update our website with the latest information". European Commission president Ursula von der Leyen has indicated that similar action will be taken in the EU. In a 26 November Twitter post, von der Leyen wrote: "The EU Commission will propose, in close co-ordination with member states, to activate the emergency brake to stop air travel from the southern African region due to the variant of concern [B11529]." The emergency brake mechanism can be enacted quickly for travel from outside the EU in the event that the epidemiological situation in a third country worsens, or a variant of interest or concern is detected. The Airlines Association of Southern Africa has urged the UK government to reconsider what it describes as a "hasty decision" to add the region to its red list. AASA chief executive Aaron Munetsi states: "With its announcement, the UK is delivering a body-blow to our region's travel and tourism sector. "The business and leisure air travel industry in southern Africa has only just begun to see green shoots emerge as governments have increasingly begun to relax and look to align and simplify their travel requirements and procedures. However, the UK's unilateral step is a major set-back that sets a worrying precedent." European airline share prices plummeted in response to the developments when markets opened on 26 November. British Airways parent IAG, EasyJet and Lufthansa all saw double-digit percentage drops in their share prices in early trading. Covid-19 infection rates in Europe had already been rising in recent weeks, prompting countries including Austria and the Netherlands to go back into full or partial lockdown.


EASA study to explore risk of lithium-battery fires in cabins
November 29, 2021
The European Union Aviation Safety Agency is commissioning research into the fire risk posed by lithium batteries in personal electronic devices (PEDs) of passengers and crew in aircraft cabins. EASA says the objective of the study, a tender for which has been issued, is to develop new emergency procedures and improve existing ones. Noting the constantly growing number of lithium metal and ion batteries on aircraft, the EU regulator states: "Lithium batteries, regardless of whether they are contained in equipment or not, are one of the main causes of incidents reported in the cabin. The main risks are fire and smoke, which can lead to catastrophic events." There are currently no limits on the number of lithium batteries that can be brought on board. Meanwhile, EASA says, battery power limits "are not based on any scientific data". Fire tests will be conducted as part of the project to provide "evidence for the establishment of limits (power output and quantity)" and to assess what effects battery number and energy have on fire risk. A key objective is to better understand causes, consequences and patterns of lithium-battery thermal runaways, EASA says. As lithium batteries can be both an ignition source and fuel for existing fires, the regulator also wants to determine fume toxicity and the risk of smoke penetration in the cockpit. EASA says it will separately assess fumes coming from batteries and materials in which batteries may be embedded. While tests will be focused on items that comply with current regulations, the study should additionally consider "risks posed by potentially undeclared items and predictions for future developments", EASA adds. With the EU-financed project, the regulator wants to support operators in assessing fire risks associated with lithium batteries and "identify the need for safety promotion for passengers", it says.


Embraer sees increased regional jet demand in Malaysia
November 26, 2021
Embraer predicts that Malaysian airlines will require 60 new commercial aircraft in the Brazilian airframer's segment over the next 10 years. "Driving this demand is the opportunity for aircraft under 150 seats to complement larger aircraft prevalent in the country and enhance the viability of establishing new routes or increasing the frequency of existing routes… within Peninsula Malaysia and to East Malaysia," the manufacturer says. Embraer Commercial Aviation chief executive Arjan Meijer notes a "potential for domestic and regional connectivity to multiply in Malaysia". He states: "Airlines can deploy these regional jets with the assurance of its low operating costs and superior aircraft performance, coupled with its green credentials." The manufacturer is showcasing its E195-E2 at the Selangor Aviation Show. Earlier this month, Embraer indicated in its 20-year market outlook that the global airlines will require 10,900 aircraft of up to 150 seats through 2040, with a total value of $650 billion. The forecast consists of 8,640 jets and 2,260 turboprops, of which 25% and nearly 40% will be taken up by Asia-Pacific airlines, respectively. Embraer predicts global revenue passenger-kilometres to annually grow 3.3% annually through to 2040, and 4.2% in Asia-Pacific.


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