IAG urges newly elected UK leader to tackle Heathrow expansion costs
December 19, 2019
British Airways parent IAG has issued a fresh plea to the UK government to independently review what the airline group sees as spiralling expansion costs at London Heathrow. In a message to newly elected UK prime minister Boris Johnson, who famously said he would lie down in front of a bulldozer to prevent Heathrow from building a third runway, IAG chief executive Willie Walsh calls for "a fresh look at the environmental viability and total cost" of expanding the hub. IAG notes that the UK Civil Aviation Authority is scheduled to announce imminently how much Heathrow can spend on planning and early construction costs, despite the airport's lack of planning permission for the project. "To ask customers to stump up vast sums in advance for a runway that may not get built, based only on Heathrow's cost proposals, is unacceptable," argues Walsh. IAG claims that operator Heathrow Airport's proposed early construction costs have risen to £2.8 billion ($3.7 billion) from £650 million in April 2018, while planning costs have nearly doubled from £265 million in 2017 to £500 million today. Accusing the airport of "spending recklessly to gold-plate projects" in the past, Walsh adds: "Allowing an expanded airport that is considerably more expensive than our European neighbours would be an own goal, as we need to compete on the world stage." The IAG chief wants the government to commission an independent assessment of Heathrow's expansion costs to ensure the expansion is "cost effective", and to "stop the CAA, as a regulator, allowing consumers to be taken for a ride". Heathrow did not immediately respond to a request for comment. When he was London's mayor, Boris Johnson vehemently opposed plans to build a third runway at Heathrow, instead backing proposals to develop an all-new airport in the Thames Estuary. Since becoming prime minister, he appears to have softened his stance. During an interview on UK radio station LBC earlier this month, when he was challenged on his previous pledge to lie in front of a bulldozer to prevent Heathrow's expansion, Johnson said: "Let's wait and see when the bulldozers arrive. The issue with Heathrow, as you know, is there is still substantial doubt about the ability of the promoters to meet their obligations on air quality and noise pollution. "But, as you know, parliament has voted very substantially in favour of that project, so that's where we are on Heathrow."
Soource: Cirium
BA pilots vote to accept pay deal
December 18, 2019
Pilots at British Airways have voted to accept a new pay deal, ending a dispute which led to industrial action in September that cost the airline millions and prompted parent company IAG to revise down its full-year profit forecast. The British Air Line Pilots Association (BALPA) said on 16 December that its members employed by BA had voted almost nine to one in favour of accepting a pay and conditions deal proposed by arbitration service Acas and recommended by the union. BA pilots went on strike on 9 and 10 September, forcing the airline to cancel more than 4,500 flights, although 2,200 were later reinstated. Industrial action had also been planned for 27 September but was later called off by BALPA in order to prevent "irreparable damage" to the airline's brand. IAG in September put the cost of the strike at €170 million ($190 million) and reviewed its full-year forecast. The airline group said that operating profit before exceptional items would be €215 million lower than the pro-forma figure of €3.48 billion achieved in the previous year. It had, at the time of releasing its outlook at the beginning of the year, expected operating profit "in line" with the €3.23 billion reported for 2018.
Source: Cirium
Delta to buy 10m gallons of biofuel annually from Gevo
December 18, 2019
Delta Air Lines and biofuels maker Gevo say the airline will buy 10 million gallons (39.4 million litres) of biofuel annually in an effort to reduce the carrier’s carbon footprint and meet global aviation sustainability goals. The Atlanta-based airline has committed to carbon-neutral growth and to reducing emissions 50% by 2050. While more expensive than conventional fossil fuels, sustainable aviation fuel can provide significant environmental benefits because the lifecycle carbon footprint can be up to 75% less than conventional jet fuel, the companies say in a joint statement on 17 December. “Long-term investments such as our agreement with Gevo are critical to Delta’s goal to lower our carbon footprint while planning for a more-sustainable future,” says Graeme Burnett, Delta’s senior vice-president of fuel management. “Fuel is an airline’s biggest area of impact and therefore presents our greatest opportunity to drive solutions that care for the planet.” Gevo adds that fuel to be supplied to Delta is composed of “inedible, industrial corn products”, with its patented process separating the sugar from the proteins in the corn product. “The sugars are then used to make the jet fuel, while the proteins are fed to livestock,” the company says. “After capturing and converting the livestock manure into biogas digestors that can displace fossil-based natural gas, the solids produced are used as fertiliser for the fields, thereby creating a continuous, renewable manufacturing cycle.” Delta’s agreement with Gevo follows a $2 million investment in Northwest Advanced Bio-fuels for study of a facility to produce sustainable aviation fuel and other biofuel products from forest floor debris, which was announced in September. The study should be completed in 2020, upon which the airline will assess next steps. If successful, Delta’s biofuel project could provide about 10% of its annual jet fuel consumption on the West Coast and serve as a blueprint for future projects, the airline said in September. Gevo’s fuel will be produced in its facility in Luverne, Minnesota and will be available to Delta between 2022 and 2023.
Source: Cirium