ARC NEWS
​European jet fuel nears lowest price since March
November 17, 2022
The spot price of jet kerosene is continuing to sink globally as crude oil values decline, with the European price approaching the lowest level since the first quarter. Data from energy information provider ICIS, which is RELX-owned, shows that the price of jet kerosene for barge delivery to the Amsterdam-Rotterdam-Antwerp import region fell to $990 per tonne on 15 November, from $1,127 four weeks earlier and $1,500 in June. The decline means that spot jet fuel for delivery to western Europe is now only a few dollars above lows hit in September and October. Should it break down further it will be the cheapest since late March, when it hit lows of around $900 per tonne. "The jet market has shown high volatility over the week," writes ICIS, noting "healthy" trading levels. "Spot prices have fallen on the previous week." Leading the declines have been falling crude oil values, slipping on demand concerns coming out of China. A firmer US dollar has also "kept a lid on prices", adds ICIS. Jet fuel prices nevertheless remain extremely elevated. In December last year, prior to Russia’s invasion of Ukraine, they were below $700 per tonne in the region. In the USA, jet kerosene prices for delivery to New York Harbor slipped by a more modest $1.75 per US gallon to $392, down from $420 four weeks ago, with inventories and production, alongside consumption, rising. And in Asia, prices for delivery to Singapore slipped by $5 per barrel to $122, down from $127.50 four weeks ago. ICIS notes that jet prices have been supported by tight supply, with sanctions on Russian gasoil exports having restricted the market and buoyed refining margins. "A significant increase in jet-kerosene exports from China has alleviated some of the supply constraint. Chinese exports are expected to hit 2 million tonnes in November, up from 1.23 million tonnes in September (approximately 319,800 barrels per day)."


EASA and FAA outline future aircraft connectivity strategy
November 17, 2022
European and US regulators are jointly studying how aeronautical communication between aircraft and ground stations should be modernised by 2035. The US Federal Aviation Administration and European Union Aviation Safety Agency have published a white-paper proposal for the “modernisation and harmonisation of the aviation data communication landscape”, based on the work of a task force comprising Airbus and Boeing specialists in addition to staff from the two regulators, EASA states. EASA highlights the study does not cover broadband provision for passengers. It concentrates on data exchanges for air traffic management and to optimise airline operations and aircraft maintenance. Such exchanges are mainly being handled by very high frequency (VHF) radio transmission and first-generation aviation satellite communication – technologies that have been used for decades. “Systems as currently deployed are fragmented and not always interoperable,” EASA observes, adding: "There is a need to look to the future and bring the system up to modern-day standards making use of technologies such as broadband.” The regulator sees a “pressing need for the aviation community to converge on what should be the common solutions of tomorrow due to increasing demand on these systems”. In addition to providing required levels for safety, security, performance and capacity, EASA says future communication systems should make “efficient usage of the bandwidth spectrum already assigned to aviation, without needing to request additional dedicated bandwidth”. The regulators propose a combination of aviation-specific VHF digital link mode 2 and performance class B Satcom transmissions and commercial broadband services to provide “high capacity and efficiency at a manageable cost”. A roadmap included in the white paper – aimed at facilitating a “smooth and safe transition to the new approach” – will take into account “existing or already planned infrastructures to the maximum extent possible, so as to optimise the share of complexity between air and ground”, EASA says. As a next step, EASA and the FAA will support research to enable the proposed transition. “For the first time, we have a common vision from all four organisations in the task force, to establish modern air-ground communications that will meet tomorrow’s requirements,” EASA executive director Patrick Ky states. “This is the first step toward achieving this, and a major one. We look forward now to working with the many other stakeholders to make this vision a reality.” EASA and the FAA cite ICAO, other regulators, standards organisations, additional manufacturers, operators, and air navigation and communication service providers among stakeholders the two authorities want to engage with to realise the new approach. FAA acting associate administrator aviation safety David Boulter says: “Data and connectivity are driving aerospace advances, and they are crucial to safety and efficiency worldwide. We look forward to working together to make the transition to a more modern, harmonized and connected global aviation community.”


Ryanair loses Croatia Airlines state-aid case
November 16, 2022
Ryanair's attempt to overturn a decision by the EU to award Kn88.5 million ($12.2 million) in state aid to Croatia Airlines as compensation for Covid-19-related losses has been dismissed by a European court. In a 9 November ruling, the European General Court dismissed action taken by Ryanair which sought to annul a decision by the European Commission on 30 November 2020 to approve a direct grant of Kn88.5 million from the Croatian government to Croatia Airlines. In addition to dismissing Ryanair's action, the court ordered the Irish carrier to pay its own legal costs and those of the Commission. It ordered the Croatian government to cover its own costs. "In view of the significance of Croatia Airlines, especially as regards its contribution to the connectivity of Croatia throughout the year, it must be concluded that the grant of the aid measure at issue only to Croatia Airlines was an appropriate measure to achieve the objective of remedying the damage caused by the travel ban and by the other restrictive measures adopted in the context of the Covid‑19 pandemic," says the court in its ruling. Earlier this year Ryanair lost its appeal against state aid provided to Finnair, and the previous year it lost a legal challenge against the provision of financial support to Austrian Airlines on state-aid grounds. Ryanair has brought a number of appeals against state aid granted to EU-based carriers during the Covid-19 pandemic. In addition to Finnair, Austrian and Croatia Airlines, it has sought to overturn decisions to approve state aid for SAS, Air France and Condor. In May 2021, Ryanair's complaints against state aid approved for TAP Air Portugal and KLM resulted in an annulment by the General Court, although the effects of the annulment – including any recovery of the aid – were suspended.


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