The U.S. Federal Aviation Administration recommended that Boeing address four “issues” related to manufacturing and supplier quality in a new report released on March 19. The report details the results of a joint review of the Boeing 787’s design manufacturing and assembly processes ordered after the January 2013 lithium battery fire aboard a Dreamliner parked at Boston Logan Airport. The review team also made recommendations for improved, “risk-based” FAA oversight to account for new business models.
AIN Air Transport Perspective » March 24, 2014
Talk of production “bubbles” again colored the discourse at the March 16 to 18 International Society of Transport Aircraft Trading (ISTAT) Americas 2014 conference in San Diego, even while OEMs in attendance insisted that record backlogs fully justify their planned rate increases. Manufacturers highlighted a strong backdrop for aircraft demand fueled by aging replacement needs, a 20-seat increase in the capacity of narrowbodies since 2007, emerging-market long-term capacity requirements and the global expansion of low-cost carriers, according to a research note from Sterne Agee.
Demand for air travel in the U.S. grew slowly in 2013, a year that started “with a good deal of uncertainty that never really let up,” the Federal Aviation Administration states in its latest 20-year aerospace forecast. Nevertheless, the U.S. airline industry posted a fourth straight year of profits, thanks to changes it implemented after the 2008 global recession. The biggest change is that airlines have shifted from efforts to increase their market share to improving shareholder returns, the FAA said.
India’s next government needs to press ahead with the development of domestic air routes, according to a new report published by consultants KPMG last week. India’s Five-Year Plan for the period 2012 to 2017 included a policy to improve flight connections between second- and third-tier cities, but progress all but stalled due to the political inertia that has gripped government ahead of elections to be held in April and May. At the same time, the recent downgrading of the country’s aviation authorities to Category 2 by the U.S. FAA has compromised India’s ability to develop further international air service.
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