Industry news

LHR to resume T4 operations on 14 June

Terminals

Terminal 4 (T4) at Heathrow Airport (LHR) in London, UK, is set to reopen on 14 June to help cope with the pent-up demand for air travel.

T4 has been closed for more than two years due to the Covid-19 pandemic. The airport said that it has used this time to renovate the terminal, including its hold baggage screening machines, air conditioning, and toilets.    

Resumption of T4’s operations will create additional room in terminals 2, 3, and 5 before the summer rush, offering airlines more check-in space and stand capacity. 

To handle potential queues at check-in, Heathrow has expanded its customer service team and strengthened its ‘Here to Help’ team, which will mobilise head office employees, including senior managers, across terminals to assist travellers.

In addition to its customer service teams, the airport will appoint up to 1,000 new security officers and other airport staff, as well as support airlines and ground handlers in their hiring initiatives.

BUSINESS & OPERATIONS

UK calls for airlines to stop overselling tickets

The UK Secretary of State for Transport Grant Shapps has accused air carriers of driving disruption at the country’s airports by selling tickets beyond their capacity to deliver.

Shapps made the statement during a meeting with leaders from the aviation industry, including airports, airlines, and ground handling companies.

The meeting was called on an urgent basis by the government to discuss the current chaos at UK airports resulting from the cancellation of thousands of flights.

According to British broadcaster Sky News, more than 150 flights were cancelled by the UK’s flag carrier British Airways and budget carrier easyJet on Wednesday.

During the meeting, Shapps also underlined that the tickets were unfairly sold to passengers for holidays they cannot go on.

Discussions will be carried out on options for offering automatic refunds to travellers, he said.

He also underlined that airlines should have been prepared well in advance to cope with the surge in passenger demand following two years of travel closures.

Ukraine Crisis

Five Russian carriers return airplanes to foreign lessors

Five air carriers in Russia have returned 31 leased aircraft to foreign lessors, revealed a document from Russia's federal air transport agency (Rosaviatsiya) cited by Reuters.

According to the document, Rosaviatsia was notified that charter airlines Azur Air, iFly, Nordwind, Pegas Fly, and Royal Flight had kept their aircraft outside Russia.

However, the document did not provide any detail on why the airlines did so.

Planes run by these airlines are based in the US, Turkey, Europe, and the Middle East, Reuters reported, citing the Planespotters aircraft tracking website. These planes did not return to Russia after 27 February, noted the website.

None of the concerned carriers commented on the matter.

Rosaviatsiya’s document dated 9 March said: “Jets of some operators… with foreign registration are currently located at foreign airfields, including in Turkey, in order to transfer them to the lessors on the pre-text of maintenance.”

Sanctions imposed by Western countries on Moscow following its invasion of Ukraine has led to suspension in the supply of plane parts, aircraft, and maintenance services.

Environmental

Embraer sets new target for 100% green electricity in Brazil

Brazilian aircraft manufacturer Embraer has brought forward its 100% renewable energy target in Brazil by one year, to 2024.

With this move, Embraer will ensure that 100% of the electricity it uses in the country is sourced from wind and solar sources by 2024.

Procuring a Renewable Energy Certificate for 2024 will enable the company to zero its ‘Scope 2’ carbon emissions in Brazil. Additionally, the purchase will support the growth of the renewable energy market in the country.

In August 2021, Embraer unveiled its ESG targets as part of the company’s efforts to ensure a sustainable future. The company set a 2040 target for carbon-neutral operations and a 2025 target for 100% green electricity.

Ukraine Crisis

Rosaviatsiya extends flight ban for country’s southern airports

Russia’s federal air transport agency, Rosaviatsiya, has extended a flight ban for several airports in central and southern Russia until 6 June over safety issues amid the Ukraine conflict, Interfax reported.

As a result, flights to Elista, Gelendzhik, Krasnodar, Kursk, Lipetsk, Rostov-on-Don, Anapa, Belgorod, Bryansk, Voronezh, and Simferopol have been temporarily banned.

In a statement, Rosaviatsiya said: “The regime of temporary restriction on flights to 11 Russian airports has been prolonged until 3:45am Moscow time on 6 June 2022.”

Operations at the country’s other airports will reportedly continue without any prohibitions.

Ukraine Crisis

UK bars Russian airlines from selling unused landing slots

To increase pressure on Russia following its invasion of Ukraine, the UK Government has blocked three Russian carriers from selling unused landing slots at UK airports.

This move will affect Russian flag carrier Aeroflot, as well as Ural Airlines and Rossiya Airlines. The landing slots in question are worth up to £50m ($62m).

Sanctions imposed on Russia by various countries across the globe have dented its economy, with the country’s central bank acknowledging the challenge that sanctions have posed for its supply chains.

The latest set of punitive measures by the UK Government is expected to further cripple Russia’s economy.

ACQUISITIONS

SMBC Aviation Capital to buy Irish aircraft lessor Goshawk

 Irish Aircraft leasing firm SMBC Aviation Capital has struck a deal with NWS Holdings and Chow Tai Fook Enterprises to take over Dublin-based aircraft lessor Goshawk Aviation for an enterprise value of $6.7bn.

The deal is currently awaiting regulatory approval and includes the acquisition of a portfolio of 176 owned and managed aircraft.

However, the deal does not cover Goshawk’s aircraft located in Russia.Upon completion, it will lead to the creation of the largest Japanese-owned aircraft lessor and second-largest global player by number of aircraft.

The merged entity will have a portfolio of 709 owned and managed aircraft, as well as another $13bn of orders from Boeing and Airbus, which include 261 new technology narrowbody aircraft.

It will operate as SMBC Aviation Capital, with a single corporate structure incorporated in the Republic of Ireland and based in Dublin.

The deal is anticipated to complete in the second half of the year.

PROJECTS

 SIN to restart T5 project

The Terminal 5 (T5) project at Changi Airport (SIN) in Singapore is set to restart, after being stalled for two years due to the Covid-19 pandemic.

The resumption of the project comes amid a rebound in existing and anticipated air travel, stated Transport Minister S Iswaran while speaking at the Changi Aviation Summit in Singapore.

The airport’s passenger volume reached more than 40% of pre-Covid-19 levels this month, compared with just below 20% in mid-March.

Plans are in place to begin work on T5 within two to three years, with the terminal expected to be ready by the mid-2030s.

Work on T5 was put on hold in 2020 to gain more insight into post-pandemic travel patterns prior to beginning the project.

The airport has four other terminals, of which terminals 2 and 4 were closed during the pandemic, while terminals 1 and 3 remained operational.

Terminal 2 is gradually reopening this year, and terminal 4 is expected to reopen soon, as long as there is demand. 

In brief

S7 suspends budget airline launch plans

Russia-based private airline S7 Group has halted its plans to introduce budget carrier Citrus due to the cancellation of aircraft supplies, according to Reuters.

Australia major airports report profit despite pandemic hit

The four largest airports in Australia registered profit in 2020-21, even though air travel suffered a hit due to the impact of the Covid-19 pandemic.

WFS secures BIAL cargo handling contract

Worldwide Flight Services (WFS) has received a 15-year cargo handling contract from India-based Bangalore International Airport Limited (BIAL).

NAV CANADA deploys new air traffic control technology at YYS Toronto Pearson

NAV CANADA has deployed new air traffic control technology at Toronto Pearson International Airport (YYS) in Ontario, Canada.

APP Jet Center buys Witham Field Airport FBO operations

Fixed-base operator (FBO) APP Jet Center has acquired the FBO operations at Witham Field Airport in Stuart, Florida, US.

acquisitions

SMBC Aviation Capital to buy Irish aircraft lessor Goshawk

Irish Aircraft leasing firm SMBC Aviation Capital has struck a deal with NWS Holdings and Chow Tai Fook Enterprises to take over Dublin-based aircraft lessor Goshawk Aviation for an enterprise value of $6.7bn.

The deal is currently awaiting regulatory approval and includes the acquisition of a portfolio of 176 owned and managed aircraft. However, the deal does not cover Goshawk’s aircraft located in Russia.

Upon completion, it will lead to the creation of the largest Japanese-owned aircraft lessor and second-largest global player by number of aircraft.

The merged entity will have a portfolio of 709 owned and managed aircraft, as well as another $13bn of orders from Boeing and Airbus, which include 261 new technology narrowbody aircraft.

It will operate as SMBC Aviation Capital, with a single corporate structure incorporated in the Republic of Ireland and based in Dublin.

The deal is anticipated to complete in the second half of the year.

projects

SIN to restart T5 project

The Terminal 5 (T5) project at Changi Airport (SIN) in Singapore is set to restart, after being stalled for two years due to the Covid-19 pandemic.

The resumption of the project comes amid a rebound in existing and anticipated air travel, stated Transport Minister S Iswaran while speaking at the Changi Aviation Summit in Singapore.

The airport’s passenger volume reached more than 40% of pre-Covid-19 levels this month, compared with just below 20% in mid-March.

Plans are in place to begin work on T5 within two to three years, with the terminal expected to be ready by the mid-2030s.

Work on T5 was put on hold in 2020 to gain more insight into post-pandemic travel patterns prior to beginning the project.

The airport has four other terminals, of which terminals 2 and 4 were closed during the pandemic, while terminals 1 and 3 remained operational.

Terminal 2 is gradually reopening this year, and terminal 4 is expected to reopen soon, as long as there is demand.