Recognizing its potential to become a major industry player, China is finally moving toward greater liberalization of its aviation sector. The announcement followed on the heels of the Third Plenary Session held in November 2013. It was during this time that China’s new leaders, alongside the Civil Aviation Administration of China (CAAC), committed to a series of reforms geared to loosen the regulatory grip that has significantly hindered industry growth. Now, eight months later, signs of change are on the horizon.
The number of training programs preparing flight crews for the new multi-crew pilot license (MPL) continues to multiply. Before year-end, there will likely be 30 or more active MPL programs around the world with well over 3,000 cadets in the pipeline.
The MPL is intended as a competency-based training license focused on preparing new pilots to become airline first officers. Guidance for the MPL was published by the International Civil Aviation Organization (ICAO) in 2006.
This week’s Farnborough International Airshow promises to be another busy one for dealmakers like Michael Richter, managing director and head of aerospace and defense with investment bank Lazard. Even compared with the periods around the 2012 Farnborough show and the 2013 Paris Air Show, he sees rising levels of mergers and acquisitions (M&A) activity in the commercial aerospace sector. He also anticipates some degree of recovery in defense industry M&A activity, reversing a period of relative inactivity in a sector that has been impacted by uncertainty over military budgets.
Analysts expect established trends in predicted long-term jetliner requirements to continue, with little change to the market breakdown by aircraft size, according to the latest Boeing 20-year forecast statistics, unveiled in London on July 10.
With India’s airlines still mired in losses, the country’s new budget, announced on July 11, did little to address some of the aviation industry’s most pressing concerns. It offered nothing on reforms in taxation on aviation fuel and maintenance, repair and overhaul—long issues of contention the aviation industry hoped India’s new government would address.
The mergers and acquisitions (M&A) tide is still rising in the commercial aerospace sector, according to Michael Richter, managing director and head of aerospace and defense with investment bank Lazard.
Resistant to grounding their Boeing 787-8s for a even a short time, several operators have indefinitely deferred addressing fixes to some of the airplanes’ last remaining glitches, presenting the manufacturer with an “issue” as it marches toward its target dispatch reliability rate of 99.6 percent.
In the four months since the March 8 disappearance of the Malaysia Airlines Boeing 777, the consensus on what happened appears to have boiled down to one basic view, simply stated by International Air Transport Association (IATA) director general Tony Taylor at the association’s annual meeting in Doha, Qatar, on June 2. “The loss of MH370 continues to be on everybody’s mind. I have no idea what happened to that aircraft,” he said. “I don’t think anyone else has, either.”
IT provider Sita has begun using new technologies such as Apple’s iBeacon to provide real-time information on mobile devices to help passengers move seamlessly across airports to board flights on time. American Airlines has become the first carrier to try the Sita common-use beacon registry, launched at the recent Sita Air Transport IT summit in Brussels.
Chinese carriers have canceled several flights to Kota Kinabalu in response to poor market demand and safety concerns following a spate of kidnappings of Taiwanese and Chinese tourists in the east Malaysian state of Sabah since April.