Finnish renewable fuels producer Neste has begun supplying three of the USA’s largest airlines with sustainable aviation fuels (SAF) for flights from San Francisco International airport. Alaska Airlines, American Airlines and JetBlue Airways have begun using the low-carbon gas, made from 100% renewable waste and residue sources, in the past few weeks, Helsinki-based Neste says on 13 August. The collaboration between San Francisco airport, several airlines and the fuel supplier began in 2018, when the planning for delivery of the biofuel commenced. The sustainable aviation fuel, the company adds, can be used as a “drop-in fuel with existing aircraft engines and airport infrastructure, requiring no extra investment”. It has a carbon footprint up to 80% smaller compared with traditional fossil fuels usually used for jet engines. “Once Neste’s SAF enters SFO’s fuel consortium storage, it is available to the commercial, cargo or business aviation entities that operate at the airport,” Neste says. The company adds that its global SAF capacity is currently 100,000 tonnes (220 million pounds) or 129 million litres (34 million USgal), and it is working towards being able to produce 1.5 million tonnes or 1.9 billion litres per year by 2023. In January, New York-based JetBlue pledged to offset all of its emissions from domestic flights beginning in July 2020, becoming the first major US airline to do so in an effort to reduce its carbon footprint from flight operations. “As an industry, we’re working together to limit our contributions to climate change,” says Joanna Geraghty, president and chief operating officer at JetBlue. The airline “remains focused on long-term environmental opportunities, particularly lessening our largest impact – carbon emissions from flying.” Alaska has been experimenting with sustainable fuels for the past ten years, the airline says, and it remains “a key part of [Alaska’s] strategy to reduce carbon emissions”. The aviation industry, which, prior to the coronavirus pandemic, accounted for about 3% of global man-made CO2 emissions, has committed to sustainability goals under an ICAO-led framework called the Carbon Offsetting and Reduction Scheme for International Aviation. That effort calls for the airline industry to cap carbon output at 2020 levels and to cut emissions to half of 2005 levels by 2050.

Source: Cirium

Boeing’s 737 Max backlog declined nearly 20% in the first seven months of 2020, with the company stripping more than 850 jets from its books due to order cancellations and accounting adjustments. The tally includes recently released data from July and comes as Boeing tackles the dual challenges of the 737 Max grounding and the airline industry downturn. Despite those pressures, however, Boeing says its backlog remains strong.And aerospace analyst Michel Merluzeau suspects the Max will have a strong future, assuming the aircraft safety returns to service. Boeing has predicted that the US Federal Aviation Administration will certificate the aircraft in time to allow Boeing to resume deliveries in the fourth quarter. Chicago-based Boeing says that in July customers cancelled another 43 737 Max orders. Those bring to 416 the number of Max orders cancelled since the start of the year, according to data from Boeing. Lessors have accounted for the majority of the 416 Max cancellations so far in 2020. They nixed at least 289 Max orders, or about 70% of the total, figures show. Those lessors include companies like AerCap, Air Lease, Avolon and GECAS. Airlines have cancelled at least 71 of the jets – or 17% – while the remaining 56 cancellations come from unnamed customers and include Boeing Business Jet variants of Max. Additionally, Boeing says that in July it stripped nine 737 Max from its backlog to comply with its ASC606 accounting guidelines. In the period from January through July, Boeing has removed 448 Max orders from its backlog to comply with those guidelines. The airframer still holds contracts to sell those jets but has less certainty about the likelihood that the sales will close. The combined changes, plus nine 737NG deliveries this year, left Boeing’s Max backlog at 3,543 jets at the end of July, down 19% from 4,398 jets at the end of 2019, data shows. But analyst Merluzeau, who works at consultancy AIR, can envision airlines placing additional Max orders once the industry recovers, and he suspects Boeing may have success selling cargo or military variants of the jet.Merluzeau estimates that the Max grounding and the industry downturn each account for about half the Max’s backlog tumble. He also views the pandemic as impacting Boeing and Airbus about equally. In the first six months of 2020, customers cancelled 66 Airbus jets, according to Cirium fleets data.

Source: Cirium

Air France-KLM Group has secured a vital agreement with pilots which will enable the budget operation Transavia to conduct domestic services in France. French pilot union SNPL has strongly backed the agreement, with members voting over 90% in favour after a turnout of nearly 83%. Air France-KLM says the vote illustrates the “responsibility” that cockpit crews are taking in the “crucial juncture” as the company plots a recovery from the air transport downturn by overhauling its notoriously loss-making French domestic network. French domestic flights have faced strong competition from budget rivals as well as the high-speed rail network, and Air France wants to capitalise on a deal, signed last year, permitting the expansion of Transavia’s French fleet beyond 40 aircraft. Transavia already operates from bases at Paris Orly, Lyon, Nantes and Montpellier on over 100 routes within Europe and the Mediterranean region. Air France will reinforce the Orly base with Transavia domestic services, while holding on to specific routes – including Toulouse, Nice, Marseille and Corsica – with its ‘La Navette’ shuttle operation. But its plan also involves surrendering routes from Paris Orly where a competing rail link of up to 2h 30min exists. Transavia will be used to expand from a mini-hub in Lyon, as well as its other two bases at Nantes and Montpellier. The budget airline’s route network is yet to be detailed. “Development of Transavia on the French domestic market is a key step in the [Air France] strategic plan to improve its financial performance,” says Air France-KLM Group, adding that Transavia will enable Air France to be competitive in “each sector in which it operates”. Air France’s regional carrier Hop will complement both the Transavia operations from Lyon and the Air France network at the flag carrier’s Paris Charles de Gaulle hub. All the changes will take effect by 2023. “Air France’s domestic market is one of our group’s strategic assets,” says Air France chief Anne Rigail. “Connecting the French regions and linking them to the rest of the world is integral to our business. To ensure this activity continues, it is now essential to restore its balance.” SNPL states that the vote, which concluded on 12 August, “clearly illustrates the pilots’ desire to get involved” in both the future direction of Air France and the development of Transavia’s French operation.

Source: Cirium