AIRLINES, AIRPORTS & AIRLINERS 23 OCTOBER 2024

Compiled by Willie Bodenstein



This Week in Airliner, Airports and Airlines

ICAO - International air travel liability limits set to increase, enhancing customer compensation.
Find cheaper airfare with this new Google Flights feature.
Aviation sector advances towards net-zero carbon emissions goal at ICAO Stocktaking Event.
Pearl 10X engine takes to the skies for the first time.
Boeing reports preliminary third quarter results.
Emirates SkyCargo to expand fleet, capacity with five more Boeing 777 freighters.
Mandarin Airlines adds further ATR 72-600 to lineup.
Airbus, Kansai Airports, Kawasaki Heavy Industries to accelerate readiness of hydrogen aircraft operations.
Worldwide incidents and accidents
Bonus video - Journey into the past, the annual Stars of Sandstone



AIRLINES, AIRPORTS & AIRLINERS NEWS

ICAO - INTERNATIONAL AIR TRAVEL LIABILITY LIMITS SET TO INCREASE, ENHANCING CUSTOMER COMPENSATION

Travelers will soon benefit from higher compensation limits for international flights, with the International Civil Aviation Organization (ICAO) announcing today that the Montreal Convention liability limits for death, injury, delays, baggage and cargo issues, will increase on 28 December 2024.

ICAO has informed the 140 States Parties that the limits would increase in line with the Convention's built-in review mechanism, to adjust for inflation every five years. This ensures that passenger and cargo compensation remain appropriate over time. This is the fourth review since the treaty came into force in 2003.

Formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, the Montreal Convention 1999 or MC99 established a comprehensive and unified framework for the international carriage of passengers, baggage, and cargo by air, introducing several elements to balance the interests of travelers and the shippers of cargo and the aviation industry.

The Convention sets liability limits for airlines, ensuring fair compensation for consumers in cases of injury, death, delay, baggage and cargo issues. Additionally, it allows for the use of electronic tickets and air waybills, significantly reducing paperwork and operational costs for airlines. This modernization has simplified processes and enabled more efficient risk management.

"ICAO continues to advocate for the universal ratification of MC99," said Juan Carlos Salazar, ICAO Secretary General. "This Convention is fundamental in ensuring the protection of consumer interests in international air travel. By promoting harmonization and codification of rules governing international carriage by air, MC99 benefits passengers and the shippers of cargo while enabling the unified and equitable development of air services."

The liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. For indicative purposes, 1 SDR was valued at US$ 1.33318 on 18 October 2024.

The limits will be revised as follows:

1. The limit for death or bodily injury will increase from 128,821 SDRs to 151,880 SDRs (about US$202,500) (originally 100,000 SDRs in 2003).

2. The limit for delay in passenger transport will rise from 5,346 SDRs to 6,303 SDRs (about US$8,400) (originally 4,150 SDRs in 2003).

3. The limit for destruction, loss, damage, or delay of baggage will increase from 1,288 SDRs to 1,519 SDRs (about US$2,000) (originally 1,000 SDRs in 2003).

4. The limit for destruction, loss, damage, or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram (about US$35) (originally 17 SDRs in 2003).

ICAO has invited the States Parties to MC99 to “make provisions as necessary in accordance with their domestic legal requirements, to give full effect as of 28 December 2024 to the revised limits.”



FIND CHEAPER AIRFARE WITH THIS NEW GOOGLE FLIGHTS FEATURE

Google Flights has added a new feature that organizes the cheapest flights for your destinations in a separate tab. The feature is aimed at budget-conscious travellers who aren't worried about convenience or time.

Travelers who use search engines such as Google Flights, Expedia, and other aggregate engines usually focus on getting the best deal. Now, Google Flights has introduced a feature aimed directly at travellers who sort by lowest price first. The default page will still be the 'Best' tab, which shows a mix of convenience and cost. However, users can easily see the cheapest fares with just a single click.

According to Forbes, the 'Cheapest' tab organizes the cheapest flights from multiple airlines to your destination based on various factors. It essentially ransacks the internet for flights through different airlines and online travel agencies (OTAs) to piece together a cheaper flight for you than anything else on the web.

However, there are some trade-offs. These include:
Flying multiple airlines
Different arrival and departure airports at your destination.
Significantly longer layovers, including overnights.
Purchasing flights on different websites and piecing them together.
Self-transfers between different unrelated airlines (which require you to check in and re-check your baggage again).
It's a lot of extra effort, but those willing to do the legwork will be rewarded with significantly cheaper fares than what is usually offered. Especially if the route is expensive or you're traveling with multiple people or as a family.

How does it work?
As mentioned, the feature aggregates fares for your route and given dates from many sources, including airlines, third-party travel agencies, and other airports. It allows users to compare the most economical fares on the market at a glance.

The feature will first be introduced in the US and will expand to other markets soon. It is scheduled to go live in the US in November this year.

Showcasing travel trends
Google Flights also offers travellers plenty of data and travel information to help them book tickets when they are the cheapest. It also shows us the environmental impact of the route we choose by showing us the percentage increase or decrease in emissions of each flight route.



AVIATION SECTOR ADVANCES TOWARDS NET-ZERO CARBON EMISSIONS GOAL AT ICAO STOCKTAKING EVENT

Supported by the International Civil Aviation Organization (ICAO), the global aviation sector has continued its efforts to achieve net-zero carbon emissions by 2050.

The 2024 ICAO Long-Term Aspirational Goal (LTAG) Stocktaking, ICAO's sixth such event, brought together close to 400 participants last week to exchange expertise, showcase successful projects, and identify priorities in response to the urgent need for action on decarbonization in the aviation sector.

The four-day event, held at ICAO's Montréal Headquarters, featured 90 panelists representing a diverse range of stakeholders including governments, aviation and energy sectors, research institutions, start-ups, financial institutions, and civil society organizations.

"We gather to address one of aviation's most significant challenges: achieving net-zero carbon emissions by 2050. We are here to share progress, learn from each other, and chart our path forward. This Stocktaking event represents another important step in our journey towards this ambitious target," remarked Salvatore Sciacchitano, President of the ICAO Council.

The event covered a wide range of crucial topics. Panel discussions focused on the latest developments in aircraft technologies, hydrogen use in aviation, operational improvements, and airport infrastructure. Several sessions were also dedicated to Sustainable Aviation Fuels (SAF), addressing policies, partnerships, sustainable certification, accounting, implementation support, and financing. Common themes included the importance of involving all stakeholders, and the role of ICAO in the development of harmonized policies to support the energy transition.

ICAO Secretary General Juan Carlos Salazar emphasized the importance of showcasing the aviation sector's commitment to sustainability: "We have to increase our outreach regarding our efforts and successes, highlighting aviation as a responsible sector, with concrete pathways towards net-zero, and prioritizing the aviation sector in the minds of policy and decision makers in all levels of government."

The event also highlighted the ICAO Global Framework for Sustainable Aviation Fuels (SAF), Lower Carbon Aviation Fuels (LCAF), and other cleaner energy sources for aviation. Discussions tracked the progress of the ICAO Roadmap on the implementation of these initiatives, with the launch of tools tracking the progress of the Global Framework across its four Building Blocks (Policy and Planning, Regulatory Framework, Implementation Support, and Financing).

The event showcased the ICAO Finvest Hub, a new initiative to connect aviation decarbonization projects with potential investors. Highlighting that it will feature a comprehensive database of funding and financing sources, ICAO Secretary General Juan Carlos Salazar remarked that "the ICAO Finvest Hub is our contribution to facilitate financing for the decarbonization of the aviation sector.” The Hub is designed to streamline the vast amount of information available, making it more accessible to energy developers, fuel producers, and energy infrastructure managers, while also promoting cooperation on risk mitigation mechanisms for early-stage project planning.

Discussions furthermore focused on the ICAO Assistance, Capacity Building and Training for SAF (ACT-SAF) programme which will help accelerate the delivery of implementation support where it is needed most. The ACT-SAF programme features over 200 partners, furthering key initiatives in training, feasibility studies, business implementation, and ongoing support for SAF production. ICAO is actively advocating for expanded partnerships through ACT-SAF to ensure an inclusive green transition for global aviation.

As the aviation sector progresses towards its net-zero emissions goal for 2050, events like the ICAO LTAG Stocktaking will continue to be instrumental in fostering collaboration, sharing knowledge, and accelerating the implementation of sustainable solutions across the industry. The Stocktaking will notably inform discussions among ICAO's 193 Member States at the next session of the ICAO Assembly, taking place in Montréal in September 2025.



PEARL 10X ENGINE TAKES TO THE SKIES FOR THE FIRST TIME

Rolls-Royce (LSE: RR., ADR: RYCEY) announces it has successfully kicked off the flight test campaign for its latest aero engine for the business aviation market, the Pearl 10X, on the company's dedicated Boeing 747 flying testbed. The engine has been selected by French aircraft manufacturer Dassault to exclusively power its brand-new flagship aircraft, the Falcon 10X.

The start of flight testing is an important milestone for the Pearl 10X programme and for Rolls-Royce as it focuses on growing in the business aviation market, as outlined at last year's Capital Markets Day. The Pearl 10X is the newest member of the state-of-the-art Pearl engine family and the first Rolls-Royce engine ever to power a Dassault business jet. The French aircraft manufacturer's selection of the Pearl 10X for its new top product is further evidence of Rolls-Royce's position as the leading engine manufacturer in business aviation.

Based in Tucson, Arizona, USA, pilots and flight test engineers will put the engine through its paces over the coming months. The flight test programme will include engine performance and handling checks at various speeds and altitudes, inflight relights, tests of the nacelle's anti-icing system and fan vibration tests at various altitudes.

So far, the development programme on the ground has included the rigorous testing of the new ultra-low emissions ALM combustor, which is compatible with 100% Sustainable Aviation Fuel (SAF) and the new accessory gearbox, which allows for higher additional power extraction. The engine, which surpassed its target thrust levels on the very first test run, will be the most powerful business aviation engine in the Rolls-Royce portfolio.

The programme is advancing at pace and has successfully accumulated more than 2,300 testing hours, both on the Advance 2 demonstrator and the Pearl 10X engine configuration.

The Pearl 10X features the Advance2 engine core, the most efficient core available across the business aviation sector, and combines it with a high-performance low-pressure system, resulting in a superior thrust of more than 18,000lbf. Compared to the last generation of Rolls-Royce business aviation engines, the Pearl 10X offers a 5% higher efficiency, while delivering outstanding low noise and emissions performance. The result is an engine that offers a market-leading combination of power and efficiency. This combination will enable customers and operators to have premium airport accessibility and fly ultra-long-range connections, whilst also being able to travel close to the speed of sound.



BOEING REPORTS PRELIMINARY THIRD QUARTER RESULTS

The Boeing Company [NYSE: BA] announced today it will recognize impacts to its financial results related to charges for certain programs across the Commercial Airplanes and Defence, Space & Security segments and the IAM work stoppage when it reports third quarter results on October 23. The company expects to report third quarter revenue of $17.8 billion, GAAP loss per share of ($9.97), and operating cash flow of ($1.3) billion. Cash and investments in marketable securities totalled $10.5 billion at the end of the quarter.

"While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," said Kelly Ortberg, Boeing president and chief executive officer. "These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term. We are also focusing on areas that are critical to our future and will ensure we have the balance sheet necessary to invest, support our people and deliver for our customers."

Commercial Airplanes expects to recognize pre-tax earnings charges of $3.0 billion on the 777X and 767 programs. The company now anticipates first delivery of the 777-9 in 2026 and the 777-8 freighter in 2028, resulting in a pre-tax earnings charge of $2.6 billion. This schedule and resulting financial impact are based on an updated assessment of the certification timelines to address the delays in flight testing of the 777-9, as well as anticipated delays associated with the IAM work stoppage. Commercial Airplanes also plans to conclude production of the 767 freighter and recognize a $0.4 billion pre-tax charge on the program, which also reflects impacts from the IAM work stoppage. Beginning in 2027, the company will solely produce 767-2C aircraft in support of the KC-46A Tanker program. Commercial Airplanes expects to report third quarter revenue of $7.4 billion and operating margin of (54.0) percent.

Defence, Space & Security expects to recognize pre-tax earnings charges of $2.0 billion on the T-7A, KC-46A, Commercial Crew, and MQ-25 programs. The T-7A program pre-tax charge of $0.9 billion was driven by higher estimated costs on production contracts in 2026 and beyond. The KC-46A program pre-tax charge of $0.7 billion reflects the decision to conclude production on the 767 freighter and impacts of the IAM work stoppage. Results also include unfavourable performance on other programs. Defence, Space & Security expects to report third quarter revenue $5.5 billion and operating margin of (43.1) percent.



MANDARIN AIRLINES ADDS FURTHER ATR 72-600 TO LINEUP

Mandarin Airlines, the regional subsidiary of Taiwan's flag carrier China Airlines, and the world's number one regional aircraft manufacturer ATR, today announced the signature of a firm order for one ATR 72-600, underscoring the airline's unwavering confidence in ATR as the optimal platform for the island's domestic operations.

This strategic agreement comes swiftly on the heels of the order for six ATR 72-600 placed at last year's Paris Air Show. Delivery of the additional aircraft is scheduled for the first quarter of 2026, to meet Mandarin Airlines' peak season demand. Three of the six aircraft from the previous order have been delivered, while deliveries of the next three will take place in the third and fourth quarter of 2025.

The cutting-edge turboprop will complement the airline's existing fleet of 12 ATR 72-600. Operating primarily from its main hub at Taipei Songshan Airport, Mandarin Airlines plays a pivotal role in Taiwan's domestic network, offering essential connections to eight key destinations, including the islands of Kinmen, Penghu and Matsu. Reliable air services ensure consistent access to essential goods, services, and transportation for residents and businesses, in addition to stimulating economic growth and fostering social integration.



AIRBUS, KANSAI AIRPORTS, KAWASAKI HEAVY INDUSTRIES TO ACCELERATE READINESS OF HYDROGEN AIRCRAFT OPERATIONS

Airbus, Kansai Airports, and Kawasaki Heavy Industries (Kawasaki) have signed a Memorandum of Understanding (MoU) to study the feasibility of hydrogen infrastructure at three airports operated in the Kansai region - Kansai International Airport, Osaka International Airport, and Kobe Airport With this MoU, the three parties will conduct an initial feasibility study for the introduction and operation of hydrogen aircraft as part of the “Hydrogen Hub at Airports” programme* and strengthen collaboration to materialise the supply of hydrogen to aircraft at the three airports.

The new initiative by the three parties will focus on the definition of a hydrogen infrastructure and supply roadmap at all three airports. This will be based on specific aircraft and airport characteristics.

The results will be evaluated from the perspectives of technology, economics, legal compatibility and operations. The approach to the challenges identified will be clarified through potential demonstration projects to be launched and roadmap development, leading to policy recommendations.

Since 2022, Airbus has worked with Kansai Airports on the use of hydrogen in the development of airport infrastructure, where Kansai Airports demonstrated world class hydrogen infrastructures exemplified by fuel cell buses and forklifts in full operation. The three airports have their own geographical and traffic characteristics which allowed Airbus to study multiple means to supply hydrogen into the airport premises.

The manufacturer has also worked with Kawasaki for the preparation of the hydrogen-fuelled ecosystem, where Kawasaki, as a leading hydrogen solution provider, demonstrated strong capabilities to design several end-to-end cryogenic hydrogen supply network options. Kawasaki has experience in the installation of baggage handling systems and other systems at a number of airports, and has knowledge of airport infrastructure development.

Both studies have delivered solid understanding about hydrogen infrastructures at the airports and the successful partnerships evolve into the second phase of the integrated feasibility study. Collaboration between the three parties enables more feasible studies that incorporate the perspectives of both supply chain and airport operations.

Under the partnership, Airbus carried out a liquid hydrogen demand forecast for the airports where a few tons of liquid hydrogen per day would be required to support the aircraft operations in the early stage of introduction. It is forecasted to increase towards up to several hundred tons per day around 2050. Airbus has observed a mature hydrogen industry footprint in Kansai and other regions backed by extensive policy measures and foresees a promising market for hydrogen aviation.

“Hydrogen is attracting global attention as a way to decarbonise. The Japanese Government is promoting a hydrogen-based energy strategy to achieve its carbon neutrality target by 2050,” said Karine Guenan, Head of ZEROe Ecosystem. “In fact, the Japanese Government has announced specific plans for the development of hydrogen from production to consumption. We believe our partnership with Japanese companies under the Hydrogen Hubs at Airports programme will contribute to the introduction of a hydrogen-powered aircraft by 2035.”

“Kansai Airports has set a vision to achieve net-zero greenhouse gas emissions by 2050 and is actively pursuing various initiatives, including the use of hydrogen, to reduce environmental impact,” said Yoshiyuki Yamaya, Representative Director and CEO, and Benoit Rulleau, Representative Director and Co-CEO of Kansai Airports. “We are delighted that this partnership will not only help us crystallise hydrogen solutions in the airport sector but also contribute to the decarbonization in the aviation industry. Based on our efforts since 2022, we will strengthen collaboration with new partners and strive to become a model for hydrogen use in airport infrastructure.”

“Kawasaki has been developing all sorts of technologies required for establishing an international hydrogen supply chain, after recognizing early on the value of hydrogen as a 'clean' energy carrier which emits no CO­2 when used,” said Motohiko Nishimura, Executive Officer and Deputy General Manager of Hydrogen Strategy Division, Kawasaki. “We believe that this three-company partnership will be a step towards a solution for decarbonization through the use of hydrogen in the aviation industry, where a reduction in CO2 emissions has been deemed difficult. The signing of this memorandum of agreement is sure to accelerate Kawasaki's efforts to achieve a hydrogen-powered aircraft.”

Airbus, Kansai Airports and Kawasaki will contribute to the early realisation of the decarbonisation of airport infrastructure in Japan by collaborating on this MOU, with the aim of realising a society in which hydrogen aircraft can operate in the future.

The use of hydrogen to power future aircraft is not only expected to significantly reduce aircraft emissions in the air, but could also help decarbonise air transport activities on the ground. In 2020, Airbus unveiled the first ZEROe concepts with the ambition to bring to market the world's first hydrogen-powered commercial aircraft by 2035. The development of the corresponding technology bricks is now underway in a global Research & Technology network.

*Airbus launched the “Hydrogen Hub at Airports” programme to jumpstart research into infrastructure requirements and low-carbon airport operations, across the entire value chain. To date agreements have been announced with partners and airports in 14 countries including Japan, France, Germany, Italy, U.S.A., Canada, New Zealand, Norway, Singapore, South Korea, Spain, Australia, Sweden and the United Kingdom.





USA, South of Austin (AUS/KAUS): An American Airlines Boeing 737-800, was involved in an airprox incident with N738PG, a Cessna R182 Skylane RG. While turning to final for an approach to runway 36L, the B737 received a TCAS RA because the Cessna R182 had suddenly turned southbound, in the opposite direction of the B737 at a slightly lower altitude. ADS-B data suggest the horizontal separation was about 400 feet.

Taiwan, Taipei-Taiwan Taoyuan International Airport (TPE/RCTP): A China Boeing 737-800, was struck by a refuelling truck while parked at gate D3 at Taipei-Taiwan Taoyuan International Airport (TPE). The truck ripped a hole in a flap fairing on the right-hand wing. The aircraft was grounded for repairs.

Russia, Moscow Vnukovo International Airport (VKO/UUWW): During flight from Mineralnye Vody to Ivanovo at an altitude of 10 km, the crew of the Sukhoi Superjet 100 reported to the dispatchers about a low fluid level in the first hydraulic system. The aircraft commander decided to make an emergency landing at the alternate airfield of Vnukovo. During landing on RWY-01, sparks were observed from under the aircraft. During the post-flight inspection, a hydraulic fluid leak and damage to the landing gear door in the form of a worn hole were discovered. With a low fluid level in the hydraulic system, the landing gear was extended, but there was not enough pressure to retract the landing gear doors. This Superjet has updated landing gear doors, which differ from the old ones in that they are longer, and in the extended position they touch the concrete. Rosaviatsia qualified this event as an incident and began its investigation.

USA, Chicago-O'Hare International Airport, IL (ORD/KORD): An American Airlines Boeing 787-9 Dreamliner, was taxiing to the gate after landing at Chicago-O'Hare International Airport, IL (ORD), when a cargo container was sucked into the no.2 engine inlet. At the time of the incident the aircraft was on Taxiway B, following Air France flight AF136, an Airbus A350-900. Reportedly a vehicle towing on or more containers crossed Taxiway B using a service road. Apparently, the jet blast of the A350 blew one of the containers towards the Boeing 787





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