SAS is concerned about the powerplant reliability issues as it prepares to select an aircraft type on which to base a future regional operation. The Scandinavian carrier has indicated that the Airbus A220 and Embraer E2 family are the candidates under consideration. But both are powered by versions of the Pratt & Whitney geared-fan engine – the PW1500G for the A220 and the PW1900G for the E2. Several recent engine shutdown incidents, affecting Swiss and Air Baltic A220s, have led to investigations into the root cause and regulatory directives governing powerplant operation. The E2 is also affected by the directives owing to the PW1900G’s similar architecture. SAS chief executive Rickard Gustafson says the airline wants to replace the Boeing 737-700s and Airbus A319s which have been serving regional routes within the core business, and set up a separate regional division with a single-type fleet. He says the 737s and A319s will leave the fleet by around 2022-23. “We need to have a replacement up and running to avoid shrinking the operation and leaving regions unserved,” he says. SAS has sought to locate the regional operation in Scandinavia, rather than in a “perceived low-salary environment” outside of the region, says Gustafson, in order to ensure that the services can be scheduled effectively. He says the company is hoping to “clear out” remaining prerequisites for the new operation over the course of this year, giving it a “clear path” to 2022. While aircraft availability is “tricky” given the “very tight” time schedule, Gustafson is “fairly confident” that there are opportunities in the market. But he points out: “It’s not just availability of aircraft but the reliability of the aircraft. “Those technologies available today – the A220 and Embraer option – both still have engine issues to resolve before we feel that they can operate with the robustness we anticipate and expect.”

Source: Cirium

British Airways plans to remove 700t of single-use plastics from its flights in 2020 by eliminating a quarter of a billion individual items. The IAG-owned airline had previously announced an initiative to remove 25 million individual items, or 90t, each year. Plastic stirrers have already been replaced with bamboo alternatives. The airline has also swapped plastic packaging for blankets with paper wrapping, reduced plastic packaging on Club World amenity kits, placed headsets inside paper charity envelopes instead of plastic wrapping, sourced water bottles that are 50% made from recycled plastic, and removed in-flight retail plastic bags. It is now looking to replace single-use plastic cutlery, tumblers, cups, toothpicks and butter packaging. The process of sourcing alternatives is "complex", it acknowledges, citing the amount of research that is required to make sure that alternative products are credibly sustainable, offer the same levels of hygiene, and do not weigh more than the items they replace. "We've spent a long time researching how to make sustainable changes without causing environmental impact elsewhere," states BA customer experience manager Kate Tanner. "For instance, we are looking at the amount of water and detergent needed to wash metal cutlery and how often it needs to be replaced versus using plastic or bamboo cutlery." She adds: "We've looked at how we ensure blankets and other items can be kept clean without a plastic covering and the lifespan of all the new items compared to the existing ones. Some potential replacement options may be heavier, which would then have an impact on the weight of the aircraft and therefore on our emissions, so we must ensure we are making the right choices on all replacements." The average flight produces 1.43kg of water per passenger, according to the Airline Catering Association, a large proportion of which is single-use plastic. Efforts to reduce its use on aircraft are hindered by the legal requirement to incinerate any cabin waste that has come into contact with food in order to minimise the chance of transmitting animal-based diseases. A recent report commissioned by IATA found minimal risk that animal-based diseases could be transmitted in this way. The airline association said last year that it was working with the EU and World Organisation for Animal Health to "support a move to a smarter risk-based response" which could allow greater recycling of onboard plastic.

Source: Cirium

South Africa’s government has set aside R16.4 billion ($1.1 billion) over the medium term for South African Airways to repay guaranteed debt and to cover debt-service costs. The national treasury has disclosed the figure in its newly-released 2020 budget review. It states that the government also anticipates that additional funding will be required to cover restructuring costs, following SAA’s placement under business rescue. SAA has incurred net losses of more than R32 billion in the past decade, while those of regional operator SA Express – also under business rescue – have reached R1.2 billion over the same period. The government will need to “assess its appetite” for continued ownership of SA Express, says the review, given its “limited role” in the local aviation market. In an effort to progress towards fiscal sustainability the government has cut the baseline of budget expenditure by R156.1 billion over the next three years – the equivalent of about 1% of GDP per year – compared with 2019 budget projections. Increased support to financially-distressed state-owned companies – including SAA and energy firm Eskom – has increased by R60.1 billion over the medium term, it says, adding to the government’s spending pressures. The government has set aside R16.4 billion for SAA to repay guaranteed debt and interest costs over the next three years. “Costs of this adjustment are still being finalised, and will be financed from existing provisional allocations for state-owned companies,” says the budget review. It points out that the market attaches increased risk to state-owned companies, which are paying “substantially more” to borrow – with the highest cost for guaranteed debt. SAA’s borrowing incurs nearly twice the interest rate of government, the review adds.

Source: Cirium