ARC NEWS
​Traffic recovery losing steam: Eurocontrol
November 26, 2021
European air traffic capacity has pulled back after increases in October and early November, according to air traffic manager Eurocontrol, with data showing deterioration in the sector's performance relative to 2019. Figures presented as part of Eurocontrol's latest Comprehensive Assessment shows that whereas on 10 November there were 18% fewer flights compared with two years prior, by 24 November this had widened to a 23% decline. In late October, the decline against two years prior was only around 16%, highlighting how gains made through the autumn have reversed over the past month. A resurgence in Covid-19 cases across several countries has led to renewed restrictions including a lockdown in Austria, raising fears that air traffic could begin to pull back. However, it is notable that most of the deterioration visible in Eurocontrol's data happened from late October to mid November, since when it has been roughly stable. In absolute terms, the number of flights decreased from a peak of around 26,700 on 27 August to circa 20,000 on 24 November, although as traffic usually declines through the autumn this masks a sharp improvement in relative performance through the second half of October. Intercontinental flows to and from Europe were down 30% on 24 November, compared with 2019, while legacy carriers were operating at a 32% decline and low-costs ones of 27%. Cargo traffic was 8% above 2019 levels, while there were larger gains in business aviation (+21%) and charter (+23%). The busiest aircraft operator on 24 November was Ryanair, which operated 1,822 flights over the period, an increase of 18% on two years previously. This makes it the only top 10 airline to increase its flying activity versus the two-years-prior reference point. Ryanair operated more than twice as many flights as the second-largest carrier, Turkish Airlines, which flew 969, a decrease of 17% on 2019. Lufthansa was third with 932 flights, followed by Air France and KLM, on 765 and 593 flights, respectively – all notable decreases on 2019. For airports, Eurocontrol's data shows that London Gatwick had the greatest decline in flights on 24 November compared with two years earlier: one of 67%. The UK airport was followed by Dusseldorf and Rome Fiumicino, with falls of 48% and 45% respectively.


EU proposes Belarus transport blacklist
November 25, 2021
The European Commission plans to introduce powers to blacklist transport operators that are found to be involved in or facilitating human trafficking or smuggling into the bloc, as a row with Belarus over illegal migration continues. The proposals, published on 23 November, would allow the EU to adopt targeted measures against transport operators of any mode of transport that are found to be involved in these activities. Measures would need to be "appropriate and proportionate", says the Commission, but can include the prevention of any further expansion or the limitation of current transport operations, the suspension of licences or authorisations granted under EU law, and the suspension of the right to overfly or operate within the European bloc. The Commission says the measures are part of a "united response to state-sponsored instrumentalisation of people at the EU's external border with Belarus". Earlier this month Ireland's foreign minister Simon Coveney was quoted by Reuters as saying that contracts under which aircraft leased to Belavia would "essentially be cut" once new measures against Belarus were introduced. "Those planes will either have to be returned or, I presume, legal action will be taken," he added. Coveney had previously been quoted as saying that sanctions were more likely to be aimed at preventing Belavia from leasing aircraft in the future, rather than impacting on existing contracts. Data shows that AerCap has two Boeing 737s and three Embraer 195-E2s on lease to Belavia. One of the 737s and the E2's are currently in storage. SMBC Aviation Capital has one 737NG on lease to Belavia. Nordic Aviation Capital has four E170's and three E195's placed with the Belarusian flag carrier. Air Lease Corporation has one in-service 737-800 and one stored Max 8 with Belavia, and a further four Max 8's on order that are destined to be placed with the carrier. A source has contacted the lessors with exposure to Belavia regarding their plans for the aircraft placed with the carrier. NAC declined to comment. A leasing source says that it would be logical for those with exposure to the airline to be looking at contingency options for the aircraft. Patrick Honnebier, professor of international aviation financing and leasing laws and counsel at Rep Law Aviation, tells that if existing lease agreements needed to be cancelled it would be "extremely grave" for Irish lessors. "The lessors will not easily be able to repossess. For the sake of argumentation, assuming that they will be able to repossess successfully abroad, Belarus –ie, the local authorities – will be hostile. So no co-operation in regard to de-registration of the aircraft," he says. "Thus, the 'Irish' lessors are not just damaged because they are losing an existing customer which currently duly pays its lease payments and other bills on time. The ground time and connected expenses may also be excessive," Honnebier adds. On 27 October, in a response to reports that AerCap was seeking to move three E2's it has with Belavia to Air Astana, the Kazakhstan carrier told: "Belavia and their lessor had been looking for temporary parking of some aircraft and approached Air Astana because of expertise on the aircraft. Air Astana is not taking these aircraft into its own fleet. Air Astana understands that Belavia is now pursuing other arrangements for the parking of these aircraft."


​SpiceJet reactivates Max fleet
November 25, 2021
SpiceJet has resumed Boeing 737 Max operations, three months after the jet was cleared to fly again by India's aviation regulator. The Indian low-cost carrier said in a 24 November Twitter post that it had reinstated the Max on its Delhi-Gwalior route. SpiceJet disclosed earlier this month that it had reached a settlement with Boeing, under which the manufacturer "agreed to provide certain accommodations and settle the outstanding claims" related to the grounding of the Max. India's Directorate General of Civil Aviation (DGCA) on 26 August overturned an earlier order which had prevented the Max from operating to and from the country's airports in the wake of two fatal accidents involving the aircraft. SpiceJet has 13 leased Max 8s in its fleet and an additional 155 Max jets on order from Boeing. Fleets data shows that the order includes 123 Max 8's and 20 Max 10's. For the remaining 12 aircraft on order, the variant is unspecified.


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