No sooner did Boeing begin evaluating bids from 22 U.S. states to build all or part of the new 777X last week when it re-entered talks with its machinists union, suddenly brightening the prospects for the incumbent, Washington state. By Thursday, however, it seemed the sides had gained little or no ground in their efforts to strike a deal for a contract extension, as union leaders quickly rejected Boeing’s most recent “best and final” offer.
AIN Air Transport Perspective » December 16, 2013
Airlines will continue to enjoy ready access to financing for new aircraft acquisitions, as funding sources such as bonds grow in importance as options for financial support, according to Boeing’s seventh annual aircraft finance market forecast. The report, released in London on December 10, said that while export credit agency funding will decline in significance in the coming years, the industry will see a more even balance among carriers’ use of bonds, leases and loans from banks and capital markets.
Aiming to reduce exposure to potential residual-value guarantee (RVG) claims for the A340 twin-aisle quad-jet, Airbus plans to recertify the aircraft to carry 475 passengers, while Rolls-Royce works to improve the type’s engine efficiency and maintenance costs. The European manufacturer told a stakeholders’ forum on December 4 that with increased capacity and lower maintenance charges and ownership costs, the A340-600 can compete against the Boeing 777-200ER and -300ER and replace larger 747-400s.
Riding the favorable winds of increasing passenger traffic, slightly better fuel prices and revenues from ancillary services such as baggage fees, the world’s airlines should post record absolute profits in 2014, according to the International Air Transport Association (IATA). But some parts of the air transport system, particularly cargo and business-class passengers, remain at pre-recession levels.
The U.S. air traffic management (ATM) system outperforms Europe’s more fragmented system on both cost and operations, according to two reports issued by the Eurocontrol Performance Review Commission (PRC).
AIN Air Transport Perspective is AIN’s e-newsletter focused on the air transport industry. It is distributed once a week and is FREE to all subscribers. Simply fill out the subscription form, which is accessed by clicking on the button below. You can also use this button to update your current account information.