Aviation Intelligence Reporter – August 2017

Aviation Regulation; ICAO and Icarus
Funding Airport Infrastructure: A Global View
Funding European Infrastructure Investment: Duel Till
Funding American Airport Infrastructure: Better Red Than Dead
Negotiating Open Skies: Form an Orderly Coup
Thunder and Pilots: Truth or Dare
Biz-Av: Addressing the Perception
Aviation Advocacy Cryptic Crossword 009



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Aviation Regulation; ICAO and Icarus

The aviation industry has a very unhealthy respect for Icarus. You might think that the industry would consider him a case study in what not to do, but no, remarkably, we look up to him and his endeavour. Airbus named one of its subsidiaries after him. SITA has a conference room called Icarus. Flying too close to the sun is something we want to do, apparently. Or is it that we think we can do everything on our own?

Funding Airport Infrastructure: A Global View

IATA’s de Juniac set the scene at the IATA AGM in Cancún. The industry is facing an infrastructure crunch. His word was ‘crisis’. In the US, the FAA is predicting that airports need not less than US$32.5 billion to make it to the end of 2021. Meanwhile, ACl North America released its own study. US airports require nearly $100 billion over the next five years to expand and maintain existing facilities. Other continents have similar infrastructure needs. From Europe to Latin America to Asia, airport capacity is bursting at the seams. Heathrow has delays totalling 1,676 minutes each day. At the Jorge Chávez international airport in Lima, a terminal designed for 10 million passengers processes 17 million. Passenger demand in Latin America and the Caribbean is expected to more than double by 2035. Asia estimates 6% annual growth in passengers.

Funding European Infrastructure Investment: Duel Till

The Commission work plan for 2017 foreshadowed a review of its Airport Charges Directive (2009/12/EC). After a few false starts the debate about airport charges has now finally made it to the top of the European agenda. The delay has meant that both sides of the debate – oh yes, two sides: no risk of working together – have had time to warm up their debating points. Sometimes, things can be over-thought.

Funding American Airport Infrastructure: Better Red Than Dead

Comrades! Last year our glorious Democratic Socialist United States saw a 32% increase in traffic demand. Plus, gratifyingly, there was an 8% increase in waiting time for all our citizens in our never-fail Security Of the Proletariat (SOP) screening system. You will no doubt rejoice in the fact that there was no such improvement for the special lines established for the Commissariat. They had to endure a reduction in waiting times, as further proof of their dedication to you, the comrades they selflessly serve.

Negotiating Open Skies: Form an Orderly Coup

As we have previously noted, this year is the tenth anniversary of the EU-US Open Skies Agreement. It is also the 25th anniversary of the US Open Skies Policy more generally. What does it say about aviation that these, at best, half-way measures, are all we have to celebrate? How do you bake a cake in the shape of the Stockholm Syndrome?

Thunder and Pilots: Truth or Dare

That most truthfully named of all trade unions, the European Cockpit Association, has had a golden few days. We expect, in a normal month, one announcement – or more often, prediction of the end of the world – to come thundering out, but last month we got not one but two such thunderations. To be fair to them, they thundered with equal-handedness. Not only have they exaggerated what the studies they themselves have commissioned have said, thus putting words into their own mouth, they put words into the mouths of other people too. That is the sort of honest dealing that makes it hard to say cynical things about them.

Biz-Av: Addressing the Perception

The number of new business jets delivered globally in the first half of 2017 is down by some 5% compared to last year. The biggest manufacturer, Textron, eked out a small increase, Dassault deliveries were up a few, but the large cabin OEMs, Gulfstream and Bombardier, saw their markets shrink further. All a bit disappointing in the context of a global economy which is getting some synchronised growth for once; its business cycle apparently riding the waves of continued geopolitical turbulence. Disappointing but not that surprising to industry experts; there is still a glut of pre-owned aircraft, the hangover from manufacturers´ over-exuberance a decade ago. With business jet depreciation rates exceeding 10%, the super-rich who became so through their business acumen are justifiably unwilling to take a punt on a new aircraft. Then there is the reputational issue; the industry’s luxury branding has a toxic public perception, inhibiting corporations from owning up to any business jets on their balance sheet.

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