ARC NEWS
American expects business travel recovery to resume in early 2022
November 11, 2021
The summer surge of Covid-19 in the USA delayed the recovery of business travel by three to six months, American Airlines' president Robert Isom estimates. The more contagious delta variant of Covid-19 increased the rate of new infections and hospitalisation rates in the USA, which starting in July interrupted a resurgence of business travel in that nation that Isom expects to resume in early 2022, he said on 10 November during the virtual Baird Global Industrial Conference. Chief executives at American's top corporate customers have told Isom that their employees will return to offices at the beginning of 2022. "That trajectory [in business travel] that we had seen in [2021], growing from virtually nothing in January to 64% of 2019 levels in July, we're going to be back on that track as we get into 2022," Isom says. "And we fully expect that business travel will rebound to 2019 levels as we progress through the year and get to the end of 2022." The Fort Worth-based carrier's revenue from domestic business travel slid from 64% of 2019 level in July to 47% of 2019 level in September. American expects to end 2021 with its domestic business travel revenue down 50%. In contrast, the carrier expects its domestic leisure revenue will be 100% recovered by the end of 2021. American forecasts that it will close out 2021 with its total domestic revenue down 20%. Isom says that American is seeing "really good signs" for a recovery in long-haul international demand in the aftermath of the USA's 8 November reopening of its borders for fully vaccinated foreign visitors. "I talked to our London Heathrow team on November 8, and they had fantastic stories of nearly full flights coming out of that airport," Isom says. "We had 40,000 customers coming out of Europe on that first day back."


De Havilland Canada staff return to Dash 8 line before closure
November 10, 2021
De Havilland Canada is completing Dash 8-400 turboprops on which it had started production at its Downsview facility in Toronto, following agreements with local union Unifor about the site's planned closure. Unifor members ended three months of industrial action when the accord was ratified on 26 October. In a statement issued at the time, the union acknowledged that De Havilland had not committed to resuming production of new aircraft. But the union says the agreements include enhanced severance packages and preferential hiring provisions should Dash 8 production resume in future. De Havilland says manufacturing equipment will be decommissioned and stored while it "reviews future production opportunities". It has previously said its lease on the Downsview facility expires this year, and the owner of the facility intends to decommission the site’s adjacent runway by June 2023. Bombardier had sold the Downsview facility to the Public Sector Pension Investment Board in 2018, prior to divesting the Dash 8-400 programme to De Havilland parent Longview Aviation Capital in 2019. De Havilland says it "maintains an optimistic outlook on its future and the future of the Dash 8 programme". The airframer describes its decision to pause production as a "responsible and prudent measure" that will "limit strain on the market and De Havilland Canada’s supply base". It states: "Our objective is to resume new aircraft production at a new site at the earliest possible time, subject to market demand." Noting availability of aircraft from its inventory, the airframer says it is in active talks with customers and will invest in new products and services to "enhance the Dash 8 aircraft’s relevance to existing and new operators. "We are seeking to stimulate the demand for Dash 8 aircraft. This demand is the prerequisite to new aircraft production." In July, De Havilland disclosed its participation in a Pratt & Whitney Canada technology programme to explore potential fuel savings from a partially electric-powered turboprop engine on a modified Dash 8-100 flight demonstrator. Under the initiative, one of the twin-turboprop's PW120-series engine will be equipped with an electric motor to assist the gas turbine in high-power flight phases, such as take-off and climb. De Havilland says the project is "evidence of our commitment to build a long-term future for this aircraft programme". Data shows the airframer has eight Dash 8-400s on order, including two aircraft for TAAG Angola Airlines which completed their first flight in May and June. The production state of the remaining ordered aircraft – three for Nigerian-based Elin Group, two for Ethiopian Airlines and one for Philippine Airlines – has not been specified.


​KLM resumes service to all pre-pandemic destinations in the USA
November 10, 2021
KLM has resumed service to all the winter destinations in the USA it was serving before the coronavirus pandemic broke out. These include Los Angeles, Chicago, Boston, Atlanta, New York, Washington, Minneapolis and Houston, the Dutch carrier says. Flights to San Francisco will begin on 6 December and will be operated daily. KLM will begin thrice-weekly flights to Las Vegas and Miami from 7 December. Flights will be available only to vaccinated European travellers with a negative PCR test, KLM says. As of 8 November, passengers have access to 64 weekly KLM flights to 11 destinations. KLM offers a broader network of USA destinations through its partner Delta Air Lines, it says.


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