Travel News

(Bloomberg) -- Electric-plane startup Eviation Aircraft Ltd. unveiled the production version of its Alice commuter aircraft, saying the pioneering model is set for an inaugural flight in the second half of this year ahead of service entry in 2024.

Eviation, whose plans have been delayed for about a year due to the coronavirus pandemic, is pitching a traditional fixed-wing design rather than the vertical takeoff, multi-rotor setup favored by similar startups.

The Alice will also be bigger than such eVTOL planes, carrying nine passengers for 650 miles (1,046 km), making it suited to the U.S. commuter market currently served by a variety of light aircraft. The production model incorporates several changes from earlier blueprints, switching to a T- from a V-shaped tail and repositioning two electric propulsion units from the wingtips to the rear.

The design uses “currently available battery cells and is not reliant on future advancements,” co-founder and Chief Executive Officer Omer Bar-Yohay said in a statement Thursday. Suppliers include Honeywell International Inc., electric motor manufacturer MagniX and the GKN arm of Melrose Industries Plc, which will make the plane’s wings, tail and electrical wiring system.

Eviation, which shifted base to the Seattle area from Israel in December to tap the area’s aerospace expertise, said in 2019 it had a backlog of more than 150 orders from customers including Cape Air, a regional carrier in New York and New England. It declined to say where the order book now stands.

By Joice Alves

LONDON (Reuters) -Sterling fell on Thursday after Bank of England Governor Andrew Bailey warned against over-reaction to rising inflation in Britain.

The pound slipped in morning trading to $1.3765 versus the dollar, its lowest level since April, and was down 0.3% at $1.3783 at 1440 (GMT).

Against the euro, it was 0.4% lower at 86.05 pence after falling to its lowest of 86.15 in 16 days.

Bailey said in his annual Mansion House speech that it was important to ensure that the recovery was not undermined by a premature tightening in monetary conditions, as a rise in inflation was likely to be temporary.

"The lack of validation for higher rates any time soon has weighed upon sterling," said Jeremy Stretch, Head of G10 FX Strategy at CIBC Capital Markets, adding that it will be interesting to see if that remains the case in August when official inflation forecasts "will be substantially revised up".

Sterling was one of the worst-performing G-10 currencies last week after the BoE kept the size of its stimulus programme unchanged and said inflation would surpass 3%, but that the climb further above its 2% target would be only temporary.

But analysts said cable was faring relatively well versus a strengthening dollar, after the U.S. Federal Reserve signalled last month it would raise interest rates and end emergency bond-buying sooner than expected.

The market also seemed reluctant to price in a risk premium related to the fast spread of the coronavirus Delta variant in the UK, analysts at ING said in a note to clients.

Daily confirmed cases have been rising for weeks in Britain but a rapid vaccination programme appears to have weakened the link between infections and deaths.

Versus the euro, the pound gained almost 5% in the first half of the year, finding some support this week on the European Union decision to extend by three months an exemption on customs checks on chilled meat shipments to Northern Ireland.

Currency analysts said that the post-Brexit dispute has had little impact on sterling so far, but that might change as political divergences between Britain and the EU are "still quite evident," ING said.

(Reporting by Joice Alves; editing by Emelia Sithole-Matarise, William Maclean and Jonathan Oatis)

BY  Solomon Odeniyi and Deborah Tolu-Kolawole

The Federal Government on Thursday has said that contrary to insinuation that the United Arabs Emirates placed a ban on flights from Nigeria, it actually placed a ban on the UAE first due to the terms and conditions laid down by the Emirate.

The United Arab Emirates had June 19 lifted ban on travels between Dubai and Nigeria after a protracted disagreement between the two countries on Covid-19 protocols.

UAE had insisted on travelers from Nigeria undergoing several other COVID-19 tests after the initial test in Nigeria.

Announcing the resumption of flight between the two countries on Saturday, a message from the Dubai Media Office said passengers from Nigeria were now expected to ‘have received a negative result for a PCR test taken within 48 hours before departure’.

However, Emirates in a statement it released on June 21 reversed its initial stance on resumption of flights.

The Emirates statement read, “In line with government directives, passengers flights to and from Nigeria (Lagos and Abuja) are suspended with immediate effect from 21 June, 2021 until further notice.”

In an interview with The PUNCH on Thursday, the Secretary of the Presidential Steering Committee on COVID-19, Dr Mukhtar Muhammed, said the Federal Government had placed a ban on the Emirates before an announcement came from the UAE.

He said, “I believe the Minister of Aviation has provided detailed information to Nigerians about all that has happened between Nigeria and UAE.

“There were ongoing consultations and we were engaging them. The ban is not from UAE. Nigeria is the one who didn’t allow them to come in with their flights because of their discriminations towards Nigeria.

“It is not scientifically right and it is quite discriminatory and that was what we wanted them to address.

“We were waiting for them to address that issue when we saw on the news that they had now banned Nigeria.

“So, actually it is not UAE banning Nigeria; it was Nigeria that banned UAE because we were not comfortable with the conditions laid down by UAE and that is why we did not allow them to resume flights.”

By Adedayo Akinwale

Abuja — The British High Commission in Nigeria has denied issuing travel document to the leader of the Indigenous People of Biafra (IPOB), Mr. Nnamdi Kanu.

THISDAY had reported that the federal government had launched further enquiries into the role of the British High Commission in Kanu's breach of his bail terms, including his escape from Nigeria.

According to the report, the main issue the government and its intelligence agents are probing is how the IPOB leader, whose Nigerian and British passports were in the custody of the Federal High Court, was able to obtain another British passport to travel out of Nigeria and traverse other African countries while he was on the run from the law.

A top intelligence officer had told THISDAY had told THISDAY that Kanu was unlikely to obtain another British travel document without the support of the High Commission.

But following THISDAY's enquires, the British High Commission in an email complaint yesterday by its Political Counsellor, Mr. Jonathan Bacon, denied the report of the involvement of the commission.

"As promised - in response to your question below, we can confirm that the British High Commission in Nigeria did not issue any travel documents for Kanu. We, therefore, reaffirm the categorical denial sent to you yesterday.

"In relation to (b) (in your email of 16:47 yesterday), the scenario you describe refers to a hypothetical situation involving someone with a British passport subject to court proceedings in the UK, and so is not directly comparable to this case," Bacon explained.

THISDAY had quoted an intelligence source on Wednesday as saying: "Following the storming of his parent's compound in Afaraukwu, Abia State, by a detachment of soldiers on 14th September 2017, Kanu 'disappeared' virtually into thin air, the federal government felt concerned. Since both, his Nigerian and British passports were still in the custody of the Federal High Court in Abuja, there were strong suspicions that Kanu got the support of the United Kingdom High Commission in Nigeria for his escape. That was later proved to be the case."

However, the British High Commission in an earlier email complaint by Bacon, denied the report of the involvement of the commission.

Bacon's response yesterday reaffirmed the earlier categorical denial.

(Bloomberg) -- The lucrative North Atlantic flight corridor that links European tourism and business meccas like Paris and London with the U.S. has been starved for traffic for the past 18 months, depriving some of the world’s biggest airlines of revenue from their most profitable journeys. 

Now carriers including  Emirates, United Airlines Holdings Inc. and British Airways are gearing up again, with plans to boost transatlantic seat capacity by 40% collectively in the eight weeks through Aug. 23, according to data from flight tracking firm OAG. 

It’s not a sure gamble. The delta variant of the coronavirus has spread to more countries, clouding the outlook for a further progress toward a reopening of the vital routes. 

Since late June, European Union countries including Italy, Spain and Greece have allowed American tourists to enter again if they’ve been vaccinated or meet other conditions like testing Covid-free. Starting as soon as late July, the U.K. -- home to Europe’s most important transatlantic hub at London Heathrow airport -- separately plans to allow arrivals from the U.S. and other countries rated medium for Covid-19 risk to come in without quarantine if they’ve been inoculated.

But the U.S. hasn’t yet reciprocated, so Europeans still aren’t allowed to vacation in New York, Los Angeles or Miami. With the delta variant adding a new layer of risk, hopes are fading that the Biden administration will act before the summer high season is over. Calls are growing to ignore the rising case loads and allow vaccinated people to travel, since health officials are increasingly confident that they are at little risk of serious illness or spreading the disease. 

“Our two continents have been kept apart during the pandemic by sometimes justified, sometimes unjustified actions by our political masters,’’ Henrik Hololei, director general for transportation at the European Commission, said at a joint event with U.S. officials this week. “Now, when the vaccination process is well underway on both shores of the Atlantic, there should be no excuse not to open up for people who want to travel, see their relatives and friends, or just new and old places.”

The biggest airlines that ply the North Atlantic are all boosting capacity in anticipation of a surge in demand. British Airways, owned by  IAG SA, has set plans to more than quadruple the number of seats it will offer over the coming weeks, according to data from OAG — setting it up for a potential letdown if there’s no breakthrough. The carrier said it continues to review its schedule, and urged the U.K. “to open up more low-risk countries, let vaccinated people travel without restriction, and to urgently provide a realistic date for these crucial steps for the industry to work to.” 

Carriers including Deutsche Lufthansa AG,  Air France-KLM, American Airlines Group Inc. and Delta Air Lines Inc. also rely on the corridor for profits. In 2019, North Atlantic flights generated 40% more business- and first-class ticket sales than the nearest contender, according to OAG. 

“The peak of the summer is already here so airlines are pretty desperate to get things moving,” said John Strickland, an aviation consultant.

What’s Happening in Air Travel This Week

Global aviation capacity jumped by 3 percentage points in the past week, and stands at 65% of 2019 levels, according to Bloomberg’s weekly flight tracker, which uses OAG data to monitor the pulse of the comeback. Further improvement was seen in Germany, the biggest source of visitors within the European Union, as well as Croatia, Greece and Belgium. Each country saw capacity surge by more than 20% week-to-week. The bloc has been relaxing border restrictions between member states as well as from outside the EU, and is steadily catching up to other regions as its vaccine rollout progresses. 

Airlines have increased capacity in Canada by 22% as it prepares to implement an easing of border rules. The U.S., powered by its huge domestic market, stands at 87% of 2019 capacity, even as staffing issues slow its rebound. Pilot shortages there could potentially spread to other countries, said John Grant, chief analyst with OAG. 

“The key learning for all airlines is that the recovery has been quicker than many had expected, especially in domestic markets where there are limited travel restrictions,” Grant said. “No airline can afford to enter the recovery phase and be cancelling flights,” though with load factors still soft rescheduling passengers shouldn’t be too much of an issue, he said.

In the Middle East, the annual Eid holiday is expected to generate a surge in traffic, with more than 450,000 people moving through Emirates’ Dubai hub in July. The long-distance specialist said this week that it may ramp up transatlantic capacity even further, depending on changes in the feeder markets in its network. 

Asia continues to be held back by zero-Covid restrictions and its lagging vaccine rollout, which has left the region vulnerable to the delta variant’s spread. 

There is some movement toward targeted reopenings. In Thailand, the government is pushing ahead with plans to jumpstart its crucial tourism industry. Starting Thursday, inoculated tourists from low- and medium-risk countries such as the U.S. and Spain will be allowed to holiday on the popular resort island of Phuket without quarantining. If successful, the experiment could lead to a wider reopening of the Thai tourism industry as soon as October.

At the same time, though, Australia’s strong flight recovery is under threat. Local lockdowns to counter outbreaks have hurt the domestic recovery, while the corridor with New Zealand has now been suspended. 

European Comeback

The degree to which Europe can extend its recovery in July and August hinges on governments’ response to the delta variant, as well as their ability to coordinate on technology. 

As of July 1, digital Covid certificates went live across the EU, allowing for ease of movement between member states for people who can show they’ve been fully vaccinated, recovered or tested negative for Covid-19. But each country has ultimate control of its own borders, and there has been a push led by Germany to close ranks against the delta variant after it spread in the U.K. Over the past week, Germany imposed a quarantine on arrivals from member state Portugal, after the Iberian country was slow to introduce its own isolation rules on Britons.

Malta, Spain and Italy are among the EU countries that have also tightened restrictions on British visitors. That’s stunted the U.K.’s own rebound, and helped to curtail the advantages that were expected to flow from a vaccine rollout that has now reached 67% of the population with at least one dose. For now, airlines such as Ryanair Holdings Plc, Wizz Air Holdings Plc and EasyJet Plc have shifted capacity from Britain into the EU.

Meanwhile, U.K. Prime Minister Boris Johnson and his German counterpart Angela Merkel will on Friday discuss opening up travel, including vaccine certification coordination. An issue that caused Brits to be turned back from flights to Malta this week was resolved after the Mediterranean island country said it would recognize the U.K.’s NHS health app, which stores vaccination records.

Ryanair remains hopeful, amid the reports the U.K. may loosen quarantine rules for its residents this month. It’s aiming to almost double capacity in July from June’s 5 million passengers, Chief Executive Officer Michael O’Leary said in a Bloomberg TV interview. He said bookings are strengthening as tourists from Germany, the Benelux and Scandinavia head to the beaches of Portugal, Spain, Greece and Italy. 

“We expect that to continue into July and August, which should make for a reasonable recovery,” he said.

President Joe Biden will hold a naturalization ceremony Friday at the White House in which 21 immigrants will become citizens as the administration pushes for more pathways to citizenship.

An administration official said Biden would use the moment to call for the option of citizenship for immigrants who were brought to the U.S. illegally as children, for foreign-born people who have temporary protected status due to strife in their birth countries and for farm workers. The official was not authorized to publicly discuss the upcoming ceremony and insisted on anonymity.

Immigration has been a political flashpoint as Biden has sought to renew visa and refugee programs that were cut or suspended during the Trump administration.

In February, Biden and congressional Democrats proposed a major immigration overhaul that included an eight-year pathway to citizenship for the roughly 11 million people living in the United States illegally. Republican lawmakers blocked the effort and have criticized the administration for the rise in people attempting to cross the southern border without visas.

The immigration debate involves fundamental issues of national security and economic growth. Republican lawmakers seeking to limit immigration say it will help keep the U.S. safe and protect jobs for native-born citizens. But economists — many associated with Democrats — say increased immigration would boost economic growth that is currently weighed down by falling fertility rates.

On Friday, the president will also recognize Sandra Lindsay as an “Outstanding American by Choice,” a U.S. Citizenship and Immigration Services program that recognizes citizens who have been naturalized. Lindsay is believed to be the first American to be vaccinated against COVID-19 outside of a clinical trial. She works as director of nursing for critical care at Northwell Health’s Long Island Jewish Medical Center in Queens, New York.

Josh Boak, The Associated Press

PARIS (AP) — Paris airport workers protesting pay cuts on Friday blocked a busy terminal at a Charles de Gaulle Airport and skirmished with police, prompting flight delays and causing travel chaos and confusion among passengers.

Police fired pepper spray to try to disperse the protesters at the 2E terminal, primarily used for international travel. An Associated Press reporter at the scene saw passengers wiping their stinging eyes and children frightened.

Banging drums and tooting horns, a few hundred union activists blocked the terminal’s passport control area, causing hundreds of passengers to miss their flights. Riot police with helmets and shields fanned out, and passengers were re-routed to a neighboring terminal.

Unions have been negotiating with Paris airport management over pay cuts linked to the collapse in air travel amid the pandemic. Management of the Paris airport network says revenue was down 80% in 2020 and that it is trying to avoid layoffs by trimming pay instead.

Unions announced strikes and protests through Monday, just as many French families leave on summer holidays.

The Associated Press

The Transportation Department will propose that airlines be required to refund fees on checked baggage if the bags aren't delivered to passengers quickly enough.

The proposal, if made final after a lengthy regulation-writing process, would also require prompt refunds for fees on extras such as internet access if the airline fails to provide the service during the flight.

A department official said the agency will issue the proposal in the next several days, and it could take effect by next summer.

The proposal will require refunds if airlines fail to deliver a bag within 12 hours of the passenger's U.S. flight touching down or within 25 hours after an international flight.

Current regulations require refunds only if bags are lost, although airlines must compensate passengers for “reasonable” incidental expenses incurred while their bags are delayed. The government does not know how often airlines keep fees even when bags are significantly delayed.

The bag-fee proposal is the first of several airline-consumer regulations coming from the Biden administration, according to a senior Transportation Department official, who spoke on condition of anonymity to discuss a proposal that hasn’t been made public.

Last year, more than 100,000 consumers complained to the government about airline service. Refunds were the biggest gripe, although most claimed airlines refused to give refunds to consumers who canceled trips because of the pandemic. The Transportation Department is seeking a $25.5 million fine against Air Canada, but has not taken action against other carriers over refunds for canceled flights.

In 2019, the last full year before the pandemic, passengers paid U.S. airlines $5.76 billion in fees on checked bags, according to the Transportation Department. That dropped to $2.84 billion last year, when travel slumped because of the pandemic. The figures do not include fees for carry-on bags.

For many years, customers could check one or two bags on almost any airline without paying a fee. That began to change during a travel slump caused by the financial crisis of 2008. Now, most U.S. airlines other than Southwest charge even for a single bag, although fees are usually waived for customers who buy high-fare tickets or carry the airline's credit card.

American Airlines generated $2 billion from checked-bag fees over the past two years, followed by Delta Air Lines and United Airlines, each around $1.5 billion. Because of their smaller size, discount airlines including Spirit and Frontier reap less money but get a higher percentage of revenue from the fees.

___

David Koenig can be reached at www.twitter.com/airlinewriter

David Koenig, The Associated Press

Air Peace has announced the resumption of Warri and Freetown flight operations from July 9 and 21, 2021, respectively.

Spokesman of the airline, Stanley Olisa, explained in a statement that Warri service from Lagos and Abuja, would operate daily while the Freetown flights would operate on Sundays, Wednesdays and Fridays.

According to him, “Air Peace is happy to announce to its teeming customers the resumption of its Warri and Freetown flight services to broaden connectivity. We shall resume more routes and increase frequencies to specific destinations as we take delivery of more brand new E195-E2s and other aircraft on maintenance overseas.”

Olisa, who said customers can now book the resumed Warri and Freetown flights on the airline’s website- flyairpeace.com or its mobile app, reiterated Air Peace’s commitment to providing best-in-class flight services while observing the highest standards of safety.

Air Peace currently services 16 domestic routes, five regional routes and two international destinations, including Johannesburg while it boasts of a varied fleet of 28 aircraft, the latest being three brand new 124-seat capacity E195-E2 jets.

(Bloomberg) -- The U.S. Department of Transportation is moving to require airlines to refund fees to passengers for checked bags if the luggage is significantly delayed to the destination, according to a person familiar with the measure.

The proposal will also require airlines to promptly make refunds for other services air passengers pay for and don’t receive -- including advance seat selection, Wi-Fi and in-flight entertainment, according to the person, who asked not to be named to discuss the plan before it’s made public.

The rulemaking plans are expected to be included in a forthcoming executive order on competition that will be signed by President Joe Biden and sent to Transportation officials.

Brian Deese, director of the White House National Economic Council, said Friday that the fee refunds for checked airline bags “will be part of a broader effort the president will release shortly around driving greater competition in the economy in service of lower prices for American families and higher wages for American workers.”

Under the proposal, airlines will be required to issue refunds for checked bag fees if the luggage is not delivered to the passenger or the person’s agent within 12 hours of arrival at their final destination for domestic travel, and within 25 hours of arrival for international itineraries.

The proposals are an attempt to reinstate some of the more pro-consumer policies that the agency had sought to impose in the closing months of President Barack Obama’s administration. In 2019, airlines collected $5.8 billion in bag fees and another $2.8 billion in charges for flight changes or cancellations.

The transportation agency under former President Donald Trump blocked a set of pro-consumer regulations in March 2017, only weeks after taking office. Airlines had applauded the Trump action, saying additional regulations were “not warranted.”

Because the Obama administration didn’t finalize its regulations until Dec. 2, 2016, and they weren’t scheduled to take effect until 2019, Trump’s DOT was able to block them.