European jet fuel prices surge on stronger crude
June 18, 2021
The price of jet fuel is pushing sharply higher in Europe on the back of firmer crude demand from the global economic recovery. On 15 June jet kerosene for delivery to Northwest Europe was assessed by commodity intelligence provider ICIS – at $614.50-$615.50/tonne, an increase of $17/t on the week and up from $585-586/t four weeks earlier. "Prices in the European spot jet kerosene market have continued [on an] upwards trajectory as demand-side fundamentals appear to be improving backed by gradually recovering flight operating rates ahead of the peak summer travel season," writes ICIS. Demand is being driven by carriers seeking to settle contracts for the second half of 2021, although high inventory levels could limit price increases over the coming weeks. Some refineries are also looking to make large increases in their production levels, which could hold down prices. Crude futures are rising on optimism for strong demand, as European and North American pandemic-related restrictions continue to lift, although the spread of the coronavirus's delta variant has capped some gains. Slightly different market dynamics were playing out in the US, with jet kerosene prices for delivery to New York harbour actually declining in the week to 15 June on the back of ample local supply levels. ICIS assessed jet kerosene for delivery to New York harbour at 185.50-185.75 US cents per US gallon on 15 June, a fall of 4.75 on the week and down from 187.50-187.75 four weeks ago. In Asia, there were mild rises in the price of jet kerosene, increasing by $2.51/barrel to $76.12-76.53/bbl in the week to 15 June, against $73.61-74.01/bbl four weeks earlier. ICIS comments this is because of firmer crude values, although a weak recovery in Asian airline traffic is constraining demand, with the spread of new Covid-19 variants limiting travel.
Biden to nominate 'Miracle on Hudson' pilot for ICAO seat
June 17, 2021
President Joseph Biden intends to nominate retired airline pilot Chesley "Sully" Sullenberger to be the US representative to the governing council of ICAO, where the man who prevented fatalities in a 2009 plane accident would bring his aviation safety advocacy to a global stage. If Sullenberger is confirmed by the US Senate, his confirmation would also be a tacit endorsement of his calls for greater transparency from Boeing and for the US Federal Aviation Administration to tighten aircraft safety oversight. Since the ungrounding of Boeing 737 Max aircraft, Sullenberger has said more changes are needed to ensure pilots can respond effectively to the automated flight controls on Max jets that contributed to two fatal crashes. He has also raised concerns about possible manufacturing defects on Boeing aircraft and called for both the airframer and the FAA "to provide information and data, so that independent experts can determine the worthiness of the work that's been done".
Sullenberger reached national fame as "Sully" in 2009 as captain of US Airways flight 1549, when he and his crew piloted an Airbus A320-214 to an emergency landing in the Hudson River after striking a flock of birds and losing engine power shortly after takeoff from New York LaGuardia. They avoided fatalities during the emergency landing, which became known as the "Miracle on the Hudson". After retiring from US Airways in 2010, Sullenberger began a career speaking on aviation safety, including research consultant work for NASA and as an Air Line Pilots Association accident investigation committee member. The council of ICAO includes 36 United Nations member states and rules on multinational standards for aircraft emissions, aviation safety and operations, including best practices for aircraft accident investigation. ICAO is also poised to review norms for new aviation technologies, including regulations on safety for unmanned aircraft and consumer drones. NASA also plans to conduct flight tests on technology that can limit the sound of a sonic boom to help ICAO to consider noise pollution rules for passenger aircraft to break the sound barrier over land.
Ryanair takes delivery of first Boeing 737 Max
June 17, 2021
Ryanair has accepted the first Boeing 737-Max aircraft of a 210-strong order that should cut fuel consumption, noise and carbon emissions. The carrier took delivery of the aircraft in Seattle and it will fly overnight to land at Dublin airport on the afternoon of 16 June. "We are delighted to take delivery of our first new technology Gamechanger aircraft", comments Ryanair Group chief executive Michael O'Leary. "These new Boeing 737 aircraft will help Ryanair lower costs, cut fuel consumption and lower noise and CO2 emissions as we invest heavily in new technology to deepen our environmental commitment as Europe's greenest, cleanest major airline." At list prices, Ryanair's investment in the new aircraft amounts to $22 billion, it says. Compared to current generation Boeing 737 aircraft, the Max will carry 4% more passengers, but reduce fuel requirements by 16% per seat and noise by 40%. The company is due to take delivery of just 12 of the new aircraft type during summer 2021, six of which will be allocated to Ryanair and six to Malta Air. Ryanair Group plans to take delivery of an additional 50 Max aircraft before summer 2022, which will enable it to "rebound strongly, offering new routes, lower fares, and rapid traffic recovery", as the sector looks to rebound from the Covid-19 pandemic. O'Leary has been extremely critical of Boeing over delays to the Max program in recent months, saying on a 17 May results call that the manufacturer "needs to get their act together" over its delivery schedule. The company had expected to receive six of the type in April and eight in May, but halfway through that month had no visibility on when deliveries would begin. Ryanair had sought to receive its first Max in time for summer 2021 in order to get pilots, cabin crews and passengers used to the aircraft before a wider deployment next year.