Strong mid-Atlantic storms caused delays and flight cancellations yesterday in the US. Nationwide, more than 900 flights were cancelled and 7,400 delayed, according to flight-tracking service FlightStats. Although not all of these are directly connected to the East Coast storms.

It is likely that 2013 will end as it began, with the EU pushing its ETS on all airlines and the ICAO unable to agree a global deal of any sort. Threats of a trade war seem imminent once again as regulators fail to reach agreement. All reports point to indecision, lack of understanding, and a complete lack of will on the part of some nations to engage on the issue of aviation emissions. The EU is now engaging with the US directly to sort something out.

IATA stated yesterday that the industry prefers a global carbon offsetting system rather than an industry-wide cap-and-trade system which is being muted by some at the ICAO and certainly by the EU. However all reports suggest that the ICAO is indeed considering gaining momentum based around a mandatory offsetting program much the same as ETS in the EU.

Boeing and KLM Royal Dutch Airlines have begun a series of commercial flights that will demonstrate how several advanced technologies, fuels and concepts can significantly improve operational efficiency, save fuel and reduce carbon and noise emissions. The technology demonstration encompasses all aspects of an aircraft’s flight – preflight, takeoff, cruise, descent and post-landing.
The first of the flights, with a KLM Boeing 777-200 aircraft flying round trip from Amsterdam Airport Schiphol to John F. Kennedy International Airport in New York, occurred on Friday and a total of 26 flights are planned for a program called “Optimal Flight” that will continue through 2013.
“The art of the possible comes to life with Optimal Flight: It combines all of Boeing’s current flight efficiency projects in a single program to demonstrate the most efficient, environmentally progressive flight possible,” said Mike Caflisch, director of airspace programs for Boeing’s Digital Aviation Customer Solutions. “This demonstration program will help us determine where next to focus our research and development to deliver improvements to air traffic management and airline services for our customers.”
Each flight is being powered in part by sustainable aviation biofuel sourced from used cooking oil. Boeing is at the epicenter of the industry’s efforts to develop and commercialize renewable fuel sources that don’t compete with food, water or land resources.
The flights also feature new services that provide various advisories directly into the aircraft’s flight management computer (FMC) and mobile device in the flight deck.
Developed by Boeing Research & Technology, the flight services highlight applications that increase real-time situational awareness for pilots using advanced digital aviation and air traffic management concepts. They include:
• Automation to integrate the dispatch and modified versions of the flight plan and performance data into the FMC. This saves work for the flight crew, allows for real-time adjustments and reduces errors by eliminating the need to make repeated FMC entries.
• Procedures and software applications that provide the air crew with recommendations to optimize the aircraft’s speed variance while providing real-time weather advisories in flight to save fuel and enable more accurate waypoint arrival predictions.
If the Optimal Flight Program is successful, Boeing and KLM will establish new operational procedures and recommendations for follow-on development programs with the partners, including NLR, TU Delft (Delft University of Technology), John F. Kennedy International Airport, Gander, Shanwick, NATS Domestic and Schiphol Group.
There is also focused research and development through a joint agreement between Boeing, KLM, Amsterdam Airport Schiphol and Air Traffic Control in the Netherlands. This agreement is an extension of an agreement first signed in 2002 to develop solutions for the sustained growth of aviation in the Netherlands.
“Boeing is committed to improving the efficiency of flight by working with progressive airlines such as KLM to accelerate smart technololgies and make them available for regular commercial use,” said Julie Felgar, managing director of environment and aviation policy for Boeing Commercial Airplanes. “Through our support and services organization and commitment to relentless research, we can help ensure their airplanes are safe, reliable and on time.”
“This is yet another great example of a value-added partnership between Boeing and the Netherlands, a country with an outstanding aerospace and technology industry,” said Brian Moran, vice president, Boeing Northern Europe. “KLM is one of the most progressive airlines in the industry and a great partner in our ongoing commitment to finding ways to realize savings in fuel and reductions in emissions and noise.”

If you are an investor in airline portfolios or have an interest in fuel prices then this is for you:

Fuel price is the big headache that keeps the airline finance staff awake at night, therefore we thought we would assist them in repairing their sleep patterns and at the same time give investors and others a chance to gain detailed knowledge of fuel prices and hedging strategies. This extra day event will help investors to decide the course for airline investment portfolios over the next 12 months. It may also be of great help to all of our delegates attending Airline Economics Dublin 2013:

AIRLINE ECONOMICS GROWTH FRONTIERS DUBLIN 2013 HAS TEAMED UP WITH BRYANT CAPITAL TRADE MANAGEMENT TO STAGE AN ADDITIONAL FULL DAY OF CONFERENCE ON WEDNESDAY 23RD JANUARY 2013. ALL REGISTERED DELEGATES WILL BE ABLE TO ATTEND THE FUEL STRATEGY CONFERENCE DAY AT NO CHARGE WHATSOEVER.

Ah I hear you say, not another person trying to tell us what we already know and/or sell us something, NO this is different. There will be no sales pitch and there will be no generally known data on show. This is the real deal, data and analysis that usually costs a great deal of money, which will be imparted to all at no charge with new up-to-date strategies for 2013 on show with a trading simulation at the end of the day.

We have the team from Bryant Capital Trade Management running the day at the Shelbourne hotel with lunch and drinks provided to all. Bryant Capital has formed relationships with all the top names including Goldman Sachs, JP Morgan, Credit Agricole, Jefferies Bache, Deutsche Bank Securities, operating within the Traded Brokerage & Clearing space offering premium counterparty credit ratings, complete transparency with daily mark-to-market of all contracts, the freedom to continue using existing FCM dealer relationships, transaction anonymity and proprietary trade analysis. The Bryant hedging solutions portfolio includes a full spectrum of competitively priced energy products and premium energy hedge structures.

All you have to do is let me know if you would like to attend the additional day and we will have a nice warm seat ready for you. We hope that this extra service helps the industry.

Happy holidays to all Americans.

The European Commission has stated that it welcomed the progress made by the UN’s International Civil Aviation Organization (ICAO) towards developing a global solution to cut carbon emissions rather than adhere to the EU ETS scheme. In the past the Commission has said that a concrete global framework from ICAO would be a justification for changing its law.
ICAO has agreed on a new process and timeline for the body to agree on a global framework and it is expected to assemble a high-level group of senior government officials representing different geographical regions next week, which will submit reports to the ICAO council for its next meetings in March and June.
It will be expected to submit a proposal for an official resolution by the end of the June council meeting.

The European Commission has stated that it welcomed the progress made by the UN’s International Civil Aviation Organization (ICAO) towards developing a global solution to cut carbon emissions rather than adhere to the EU ETS scheme. In the past the Commission has said that a concrete global framework from ICAO would be a justification for changing its law.
ICAO has agreed on a new process and timeline for the body to agree on a global framework and it is expected to assemble a high-level group of senior government officials representing different geographical regions next week, which will submit reports to the ICAO council for its next meetings in March and June.
It will be expected to submit a proposal for an official resolution by the end of the June council meeting.

Ryanair carried 7.54million passengers during October 2012, a 4% increase over the year ago-period. The low-cost carrier’s load factor was down two percentage points to 82%.

October 2012 was the seventh month in succession that Ryanair has carried over 7 million passengers (including a record 8.9 million in August). Ryanair remains the only airline in Europe to carry over 7 million passengers in one month. Ryanair also carried over 79 million passengers for the 12 months to October 2012, which is another record.

CF Partners, the commodities trading, risk management and investment firm, and ETS Aviation, the emission data management specialist, have agreed a strategic partnership to offer airline operators the facility to buy and sell carbon credits on the carbon market.

Growing demand for EU Aviation Allowances (EUAAs) amongst airlines has led to CF Partners significantly increasing its activity in the market in recent months. In May, CF Partners announced a partnership with the European Energy Exchange (EEX) to support liquidity on the market for aviation allowances, EUAs and CER futures by becoming a market marker.

Under the terms of its latest partnership with ETS Aviation, CF Partners will execute and manage trades introduced by airline operators through ETS Aviation’s Carbon Exchanger link.

Finn Payne, Aviation Specialist, at CF Partners said: “Since the inclusion of airlines in the EU ETS there has been a growing call from operators for an effective means of accessing the carbon market. Our carbon trading services provide this means, offering airlines a simple and efficient way in which to buy and sell emissions allowances and ensure their compliance under the ETS.”

John Davis, Emissions Trader at CF Partners, added: “We are seeing growing demand for EU aviation allowances from airlines and are committed to supporting all operators looking to trade for compliance purposes. CF Partners is working hard alongside our partner, ETS Aviation, to help develop an efficient and liquid market for aviation allowances, which is essential if airlines are to successfully risk manage their carbon exposure.”

“ETS Aviation’s Carbon Exchanger link will provide all airlines and aviation operators with access to the carbon market, irrespective of their size and the volume of credits they are looking to trade in.” said Godfrey Haslehurst, who heads the Marketing for ETS Aviation. “This service, in partnership with CF Partners, will enable all operators of whatever size to buy or sell credits at the click of a button. Alongside our ‘Aviation Footprinter’ system that helps clients monitor, report and verify their carbon emissions, we have the ideal EU ETS solution.”

Airlines have been included in the EU Emissions Trading Scheme (ETS) since the start of 2012 placing a cap on their overall emissions of CO2. All operators now have to surrender one carbon allowance for every tonne of CO2 emitted on a flight to and from (and within) Europe. Airlines that emit more than their allocated amount of CO2 must reduce emissions or procure extra allowances/credits on the carbon market.

Airbus and one of the world’s leading academic institutions, Tsinghua University have formed a partnership to complete a sustainability analysis of Chinese feedstocks, and to evaluate how best to support the development of a value chain to speed up the commercialisation of aviation bio-fuels. The value chain aims to produce and to promote the use of aviation bio-fuel in China, the world’s fastest growing aviation market.

In phase one, the partnership is assessing suitable feedstocks that comply with ecological, economic and social sustainability criteria. The sustainability analysis is managed by Airbus and involves close collaboration with Tsinghua and leading European institutions. Phase two will narrow down the most promising alternative fuel solutions.

The first results are due to be analysed in the second half of 2012. The goal is to select a number of feedstocks including used cooking oil (which would otherwise be waste) and also algae. By the beginning of 2013, the full sustainability analysis should have been completed.
From 2013 onwards, the partners will look at scaling-up the alternative fuel production process to achieve sustainable quantities of aviation fuel for commercial use.

“We are privileged to be working with our Chinese partners to determine how best we can contribute to a sustainable aviation sector in China” said Frédéric Eychenne, Airbus New Energies Programme Manager. “The commercialisation of alternative fuels is one of the essential ingredients in our quest to achieving ambitious environmental targets in aviation.

“We are grateful to Airbus support for the project.” The Project Manager, Professor Zhang Xiliang, Director of Institute of Energy, Environment and Economy, Tsinghua University, said, “the project will help us improve the understanding of the nature of aviation Biofuels commercialisation in China, identify the opportunities and challenges, and evaluate the possibility of social, economic, market and technology change and its cost, obstacles and challenges. We believe that the research will have positive effects on energy conservation, emissions reduction and climate change addressing in Chinese aviation sector.”

The partnership agreement is one of the initiatives to develop a complete sustainable aviation bio-fuel production capability in China, using only sustainable resources and is part of the Airbus goal to have in place a value chain in every continent by 2012. So far Airbus has value chains in Latin America, Australia, Europe, the Middle East, and with the Chinese value chain, Asia.
Turkish Airlines signs up for Jeppesen Crew Tracking Solution
Jeppesen, a unit of Boeing Flight Services, is now providing Turkish Airlines, the third largest international carrier in Europe, with its industry-leading Crew Tracking solution to help the airline manage its crew operations as the airline continues to expand its air service.
Adding Jeppesen Crew Tracking to the crew pairing and crew rostering solutions from Jeppesen already in production means that Turkish Airlines can now optimise the management of their nearly 8,000 crew members and enhance overall operating efficiency.

“Turkish Airlines have been able to speed up the planning process and reduce our operating costs thanks to Jeppesen’s Crew Pairing and Crew Rostering products”, says Dr. Temel Kotil, president and CEO of Turkish Airlines. “Now we are very pleased to have Jeppesen Crew Tracking in production after a short implementation period. The product will strengthen our ability to be in full control on the day of operation and bring cost savings that will increase our competitiveness.”

Daniyal Aratekin, director, Crew Planning, Turkish Airlines. “Jeppesen Crew Tracking will nicely fit into the increasing requirements of our rapidly growing organization with its flexibility and easy-to-modify characteristics. We also expect a positive effect on revenue from allowing more and later aircraft swaps, which increases our ability to adjust passenger capacity.”