ARC NEWS
​US punishes Russian carriers for violating export controls
April 08, 2022
The US Bureau of Industry and Security (BIS) has issued orders denying the export privileges of three Russian airlines, after the carriers operated aircraft without its authorisation. The orders are directed against Aeroflot, Azur Air and UTair "due to ongoing export violations related to comprehensive export controls on Russia" imposed by the US Commerce Department, of which the BIS is an agency. The three temporary denial orders, known as TDOs, have been issued for 180 days and may be renewed. They terminate the rights of those airlines to participate in transactions subject to the export administration regulations (EARs) including exports and reexports from the United States. Those rules will be administered by the bureau. Back on 24 February, BIS imposed “expansive” controls on aviation-related items to Russia, including a license requirement for the export, re-export or transfer (in-country) to Russia of any aircraft or aircraft parts on the Commerce Control List. Then, on 2 March, BIS further excluded any aircraft registered in, owned, or controlled by, or under charter or lease by Russia or a national of Russia from being eligible for license exception "Aircraft Vessels, and Spacecraft", otherwise known as AVS. AVS authorises, among other things, the departure from the USA of foreign registry civil aircraft on temporary sojourn in the USA and of US civil aircraft for temporary sojourn abroad, according to the Legal Information Institute at Cornell Law School. Accordingly – BIS goes on to say in its 7 April press release – any US-origin aircraft or foreign aircraft that includes more than 25% controlled US-origin content is subject to a license requirement if, for example, it is Russian-owned or operated and exported to Russia. On 18 March, BIS publicly released a list of private and commercial aircraft it had been tracking as likely operating in violation of the EAR. "This action notified the public that, absent authorisation from BIS, the operation of, or service to, any aircraft on the list or owned by Russian parties in violation of the EAR may lead to enforcement actions from BIS, which may include substantial jail time, fines, loss of export privileges, or other restrictions," it said. BIS further updated the list on 30 April 2022 and will continue to maintain and update the list "as circumstances warrant". It says that Aeroflot, UTair and Azur Air "engaged in and continue to engage in recent conduct prohibited by the EAR by operating controlled aircraft subject to the EAR without the required BIS authorisation". The three airlines, BIS says, operated multiple aircraft subject to the EAR. Aeroflot operated such aircraft on flights between Moscow and China, India, Turkey, and the UAE. Azur Air flew to Turkey, the Maldives, the UAE and Vietnam, while UTair flew to Tajikistan, Armenia, Azerbaijan, Saudi Arabia and Uzbekistan. All three airlines also operated the aircraft on domestic flights. “The Biden Administration has imposed historic sanctions on Russia for its unwarranted aggression in Ukraine. With today’s temporary denial orders, the Department of Commerce takes another significant action to hold Putin and his enablers accountable for their inexcusable actions,” commerce secretary Gina Raimondo states. “We are cutting off not only their ability to access items from the United States but also re-exports of US-origin items from abroad. Any companies that flout our export controls, specifically those who do so to the benefit of Vladimir Putin and the detriment of the Ukrainian people, will feel the full force of the department’s enforcement.”


IATA chief calls for more honesty in carbon-reduction effort
April 08, 2022
IATA director general Willie Walsh has called for more honesty about the primary role sustainable aviation fuel is set to play, rather than future aircraft technology, in efforts to reach net-zero air transport carbon-dioxide emissions by 2050.
Speaking at the Civil Air Navigation Services Organisation's global leadership forum on 7 April, Walsh said among the biggest challenges of meeting the net-zero target is in his view being "honest about how we are going to get there". When IATA was developing its net-zero strategy, Wash says: "I was concerned that we would go out there and say 'the solution is going to be this fantastic technology that is being developed, but is not in operation today' and people would just laugh at us." Citing full- and hybrid-electric and hydrogen power, Walsh says he is optimistic about technological advances being made and the efficiency gains that can thereby be achieved. But he argues that these propulsion systems will not be available by 2050 to address the 80% of aviation emissions coming from flights over 1,500km. "Trying to convince people that that is how we are going to solve the problem wouldn't have credibility," he says. IATA estimates that 65% of required CO2 emissions for the net-zero target will be achieved through replacing fossil-based kerosene with SAF. The required remaining savings would be achieved through new technology, carbon-offsetting and -capture schemes, and improved air traffic management. The central challenge will therefore be to scale up SAF production, Walsh says. He acknowledges that SAF "is not a long-term solution" to address aviation emissions. "There has to be a something after that." But he says that SAF provides an 80% lower life-cycle carbon footprint than conventional, fossil-based kerosene. "It is making sure that people understand what it is what we are doing, that we are honest about what it is what we are doing." He warns against attempts to convince customers that all required emission savings can be achieved with new technology at some point before 2050. "We need to show evidence that we are doing it now," he says.


​Recovery gained pace in February: IATA
April 07, 2022
Global passenger traffic picked up markedly in February as Covid-19 fears receded, and the conflict in Ukraine had only a minor impact on demand, according to IATA. Data from the airline association shows that total traffic in February, as measured by revenue passenger-kilometres, was up 116% compared with a year earlier, a marked improvement compared with January 2022 when activity was 83% higher. This still represents, however, a 46% fall from February 2019's level. Domestic traffic was up by 61% compared with the year-ago period, against a 43% increase in January. Meanwhile, international RPKs were up 3.5 times against February last year, compared with a more than doubling in January. "The recovery in air travel is gathering steam as governments in many parts of the world lift travel restrictions," states Willie Walsh, IATA's director general. "States that persist in attempting to lock-out the disease, rather than managing it, as we do with other diseases, risk missing out on the enormous economic and societal benefits that a restoration of international connectivity will bring." Leading the gains was activity in Europe, with RPKs up 233% on the year, followed by the Middle East and North America, up 194% and 139% respectively. The outlier is Asia, with an improvement of just 60%, as ongoing restrictive Covid regulations continued to hinder the recovery. Answering questions after the data was released, Walsh said the strength of the recovery meant that some airlines would "definitely" be profitable this year, and many observers would likely be surprised at the robust earnings achieved by certain companies. This is despite the challenge of higher fuel prices, which it is "inevitable" will ultimately be borne by the consumer. "It typically takes about six months for higher oil prices to find their way [into stronger fares], but the very rapid increases [seen this year] are likely to be reflected a lot earlier than we would have traditionally seen," says Walsh. "I think the high oil price is a challenge but I don't see it as a challenge that the industry will not be able to face. Airlines know what to do and will respond quickly."


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