ARC NEWS
USA identifies more aircraft violating Russia/Belarus export ban
August 05, 2022
US regulators have added 25 foreign-produced aircraft that have flown into Russia or Belarus to a list of jets that are in apparent violation of US export controls, due to them containing 25% or more US-origin parts. The US Commerce Department, through its Bureau of Industry and Security (BIS), has added the aircraft to the 158 already identified as having breached export administration regulations (EAR) after violating its de minimis threshold of US-made parts. The newly identified foreign-manufactured aircraft consist of Airbus A330-300 equipment in the fleet of Ifly, A321 and A330-200 aircraft with Nordwind, A321 aircraft with Red Wings, A320 and A321 aircraft with S7 Airlines, A320 and A321 aircraft with Ural Airlines, and A320 and A321 aircraft with Yamal Airlines “The United States and our partners applied sweeping, powerful export controls to industry sectors – such as aerospace – that Russia leverages to sustain its military aggression,” states assistant secretary of commerce for export enforcement Matthew Axelrod, adding that the new additions to the list "further degrades Russian airlines’ ability to operate their fleets of both US and EU airplanes". US law firm Katten states that the effect of violating the EAR is that such aircraft are thereafter prohibited from being sold, transferred, exported, re-exported, financed, ordered, bought, removed, concealed, stored, used, loaned, disposed of, transported, forwarded or otherwise serviced by any person anywhere who has knowledge of the violation. Subsequent actions taken with respect to the listed aircraft, including maintenance, repair, refuelling, and the provision of spare parts and services, are subject to EAR prohibitions, Katten adds. "So unless an aircraft in Russia has remained grounded since the Rules were issued, the continued leasing or financing of that aircraft (among other activities) by a party having knowledge that it had operated within Russia may be prohibited by US law," the law firm notes. Katten points out that other rules may apply to leasing and financing of commercial aircraft in Russia including the rules of the Office of Foreign Assets Control (OFAC) of the US Department of Treasury, and the rules issued by the European Union in response to the Russian invasion. "Lessee parties to a leasing transaction, including airline majority shareholders, require screening against sanction regimes to ensure OFAC violations do not occur separate from the export licensing issues," it adds. On 24 February, the BIS imposed expansive controls on aviation-related items to Russia, including a licence requirement for the export, re-export or transfer (in-country) to Russia of any aircraft or aircraft parts on the Commerce Control List.


Swiss returns to profit in first half
August 05, 2022
Lufthansa subsidiary Swiss posted an adjusted EBIT of Swfr67 million ($70.1 million) for the first half of the year, improving from an EBIT loss of Swfr398 million in the same period a year ago. Total revenues rose 180% to Swfr1.8 billion, it says in a 4 August statement. During the period, Swiss carried some 5.3 million passengers, five times as many as it had carried in the prior-year period. The increase was reflected in first-half revenues, it adds. Capacity was at 62% of that of the comparable period in 2019; by contrast, first-half capacity in 2021 was at some 26% of its 2019 level. Finance chief Markus Binkert states that Swiss returned to profit again after just the first six months of this year despite operating reduced capacities. The encouraging business development in the first few months of the year strengthened further in the second-quarter period, the airline says. Swiss benefited in particular from sizeable booking demand and from the improved profitability provided by its completed restructuring activities. For the second quarter, Swiss has reported an improved adjusted EBIT of Swfr114 million as compared to an EBIT loss of Swfr197 million in the prior-year period. Revenues increased substantially to Swfr1.1 billion from Swfr359 million in the second quarter of 2021. Swiss says it is confident of returning to profit in its 2022 full-year results despite the likelihood of an economic slowdown and high fuel prices. Chief executive Dieter Vranckx states: "Thanks to the restructuring that we conducted last year, Swiss stands today on solid financial foundations."


​Schiphol extends departing-passenger cap
August 04, 2022
Amsterdam Schiphol airport is extending a limit on daily departing passengers through September and October, as it seeks to minimise disruption amid the recovery. The hub will process a maximum of 67,500 departing passengers per day in September, rising to 69,500 in October – figures broadly aligned with airlines’ projections for the period. "This has been the subject of extensive consultation with airlines in the recent period," notes Schiphol. It will actually process fewer passengers than in August. when 73,000 travellers per day were permitted to depart daily. It links the reduction to the seasonal effect of passengers wearing "more clothes, such as coats, hiking boots and vests", stating: "As a result, it takes a little longer to check all the hand baggage and the passengers." Schiphol adds that "virtually all parties at the airport are understaffed", with the result that delays and faults ripple through the entire process. September and October include a two-week autumn holiday period, set to create an excess of around 3,500 local departing passengers on those dates, it adds. Schiphol is taking the action as it seeks to ensure a reliable customer journey through the airport that minimises disruption. Like many airports across Europe and globally, Schiphol has struggled to cope with the demand from passengers as the recovery has ramped up through the summer. "Based on the capacity made available by Schiphol, the independent slot co-ordinator (ACNL) will consult with all airlines to ensure that the number of passengers is appropriate in relation to the security capacity," it says. It highlights that the number of available security staff continues to rise, with 200 new positions beginning recruitment this month and a further 80 in October.


LOG ON

CONTACT
SGS Aviation Compliance
ARC Administrator
SGS South Africa (Pty) Ltd
54 Maxwell Drive
Woodmead North Office Park
Woodmead
2191
South Africa

Office:   +27 11 100 9100
Direct:   +27 11 100 9108
Email Us

OFFICE DIRECTORY
Find SGS offices and labs around the world.
The ARC is a mobile friendly website.