Lufthansa Group renews IT partnership with Amadeus, adds digital services

PhocusWire | February 18, 2020

Lufthansa Group and Amadeus have renewed their long-term commercial partnership, giving the carrier access to the Altea passenger service system as well as a range of other digital services. While the deal was agreed in principle about a year ago, Amadeus says it has taken time to negotiate various elements included in it. The Altea system will continue to provide its reservations and ticketing technology as well as inventory and disruption management to Lufthansa.

Spotlight

The CH-53K is a further development of theCH-53E Super Stallion Helicopter developed for US Marines, Air Force and Sea Stallion, a naval version of the helicopter. Equipped with Fly-by-wire technology and fully digitized glass cockpit USMC has 200 Helicopters on order, valued just over $25 billion or approximately $125 million per unit.


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BUSINESS AVIATION

United Becomes First U.S. Airline to Sign Agreement to Purchase Sustainable Aviation Fuel Overseas

United Airlines | May 11, 2022

United, which has invested in more sustainable fuel production than any other airline in the world, became the first US airline to sign an international purchase agreement for sustainable aviation fuel. The airline has signed a new purchase agreement with Neste that provides United the right to buy up to 52.5 million gallons over the next three years for United flights at Amsterdam's Schiphol Airport, and potentially other airports as well. "Reducing carbon emissions from fuel is the fastest way United will reach our 100% green goal by 2050. As the airline that has invested more than any other airline in sustainable aviation fuel production, it makes sense to expand our network of partners internationally with a leading company like Neste. The demand from our customers to limit their emissions from flying is growing exponentially, and this agreement means that United customers flying from Amsterdam, and potentially more airports, will be partners in our sustainability efforts." Lauren Riley, United's Chief Sustainability Officer Neste will provide United with 2.5 million gallons of SAF in Amsterdam in the first year. United will also have the right to purchase up to 20 million gallons in the second year, and up to 30 million gallons in the third year, at Amsterdam or other locations that Neste can supply throughout the globe, as Neste increases its SAF production. This supply agreement is enabled by Neste's ambitious growth strategy, which will see the company producing 515 million gallons of SAF (1.5 million metric tons) per year by the end of 2023. Neste has been producing and delivering SAF since 2011 and has a proven track record of supplying SAF to customers in Europe, Asia and the Americas. "We're excited to be partnering with United in this milestone purchase agreement and make our SAF available to United, also an industry leader in SAF investments," said Thorsten Lange, Executive Vice President, Renewable Aviation at Neste. "Our global, fast-growing SAF production and supply chain supports airlines and their customers in reducing greenhouse gas emissions. Neste is committed to helping aviation transition to a more sustainable future, and we look forward to expanding our cooperation with United." SAF delivers the performance of conventional jet fuel but with a significantly smaller carbon footprint on a lifecycle basis. Neste's SAF reduces lifecycle greenhouse gas emissions ("GHG") by up to 80% compared to conventional jet fuel and burns cleaner than conventional jet fuel reducing non-CO2 emissions, including particulate matter (PM). Neste MY Sustainable Aviation Fuel™ is produced from 100% sustainably sourced renewable waste and residue raw materials, including used cooking oil and animal fat waste. United has aggressively pursued strategic investments in SAF producers and revolutionary technologies including carbon capture, hydrogen-electric engines, electric regional aircraft, and urban air mobility. United has invested in more SAF production than any other airline globally.

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BUSINESS AVIATION

Southwest Airlines Launches Interest-Free Payment Installments to Hawaii with Buy Now Pay Later Leader, Uplift

Southwest Airlines | January 19, 2022

Uplift, the only enterprise Buy Now, Pay Later solution serving the world's top travel brands, has deepened its partnership with Southwest Airlines Co. Customers can book their Southwest Airlines® flights now through Monday, Jan. 24, to the breathtaking Hawaiian Islands with interest-free payment options through Uplift for travel dates through the end of Aug. 2022.* Aloha seekers can visit the beautiful destinations of Honolulu (Oahu), Hilo (Hawaii Island, Kahului (Maui), Kona (Hawaii Island), and Lihue (Kauai) nonstop via interisland service, or from cities across the continental U.S. such as Las Vegas, Long Beach, Sacramento, Los Angeles (LAX), Oakland, Phoenix, Sacramento, San Diego, San Jose, Calif. Southwest's® interest-free promotion is available for purchases as low as $49 one-way and for three or six-month terms, with no late fees or prepayment penalties. Customers can book today and fly as soon as tomorrow - even before they are finished making their payments. Travelers can also book now, and begin easy monthly installments and daydream about their spring break getaway or upcoming summer vacation trip. "Southwest is about connecting our Customers to the places that matter most in their lives. We know there is a strong travel demand to Hawaii and are excited to fly our Customers to the Aloha State, We are grateful to enhance our partnership with Uplift, making travel more accessible, affordable, and rewarding by giving Southwest Customers the freedom to travel now and pay over time." -Jonathan Clarkson, Vice President of Loyalty, Partnerships, and Products for Southwest Airlines. Using Uplift installments to buy now and pay later gives Southwest Customers the freedom to book trips when they are ready and divide the cost over a series of affordable monthly payments. Uplift is available on mobile or web and is seamlessly integrated into the Southwest.com booking process for a frictionless Customer experience. Customers will see the total cost of their trip at the time of booking along with the monthly payment amount, letting them take control of their budget and create lasting travel memories. "We are thrilled to expand our growing partnership with one of America's most beloved airlines offering customers a budget-friendly way to experience the aloha spirit of the Hawaiian Islands, Since the launch of our partnership in April 2021, we continue to see strong growth and customer adoption of Uplift's easy payment options. This incredible offer of interest-free installments makes a Hawaiian vacation a reality for travelers who already enjoy Southwest's friendly hospitality and low-cost fares and new customers as well." -Tom Botts, Chief Commercial Officer of Uplift. Uplift expanded its partnership with Southwest Airlines in April 2021 to Southwest.com, joining the longstanding relationship with Southwest Vacations. Uplift partners with over 200 of the world's leading airlines, cruise lines, resorts, and other major travel brands to offer BNPL payment options to help more consumers make meaningful purchases. Uplift flexible payment options are available now on Southwest.com—head on over to view Southwest's latest deals. About Southwest Airlines Co. Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 121 airports across 11 countries. Celebrating its 50th Anniversary in 2021, Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline1. Based in Dallas and famous for an Employee-first corporate Culture, Southwest maintains an unprecedented record of no involuntary furloughs or layoffs in its history. By empowering its nearly 54,0002 People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among as many as 130 million Customers carried a year. That formula for success brought industry-leading prosperity and 47 consecutive years3 of profitability for Southwest Shareholders (NYSE: LUV).

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AVIATION TECHNOLOGY

Turboprop Aircraft Values Steadily Increasing Amid Tight Inventory Levels, According to Sandhills Global Market Report

Sandhills Equipment Value Index | January 11, 2022

The latest Sandhills Global aviation market report finds that asking values for turboprop aircraft in Sandhills marketplaces increased 4.8% year-over-year from December 2020 to December 2021. Dwindling used turboprop aircraft inventory levels, especially in key age groups and for certain models, remain a primary driver of asking value increases. The new market report follows Sandhills' recent market report identifying noteworthy supply and demand trends within the used piston single aircraft category. Sandhills' aviation products include Controller, Controller EMEA, Executive Controller, Charter Hub, Aviation Trader, Aircraft Cost Calculator, and AircraftEvaluator. AircraftEvaluator is Sandhills' proprietary asset valuation tool for all types of aircraft, built using the same technology behind FleetEvaluator. Widely used and trusted across equipment, truck, and trailer industries, FleetEvaluator identifies asset values with unparalleled accuracy. The key metric used in all of Sandhills' market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. Chart Takeaways This report includes detailed analysis of asking values and inventory trends in the U.S. used turboprop aircraft market along with charts that help readers visualize the data. Highlights include noteworthy value trends in Beechcraft King Air series. Asking Values The 4.8% YOY asking value increase for used turboprop aircraft in Sandhills marketplaces means that the average turboprop aircraft was valued at $1,412,023 in December 2021 compared to $1,347,814 in December 2020. From November to December 2021, turboprop aircraft asking values increased 3.9%, an average value jump of $53,000. Inventory Levels The current market report shows inventory in the turboprop aircraft category is down 56.6% YOY. The 0- to 10-year age group displayed the steepest inventory drop, down 64.4% YOY. The lowest decline was found in the 25-year-plus age group, which was still down 52.2% YOY. Beechcraft King Air Series Sandhills asking EVI for Beechcraft King Air turboprop aircraft were up 2.8% YOY in December. The King Air 200 series, up nearly 19% YOY, is a key driver of Beechcraft King Air asking values. The Sandhills EVI shows steady value increases in King Air 200 models since March 2021; average asking values are up $330,000 YOY, topping $2,000,000 in December. About Sandhills Global Sandhills Global is an information processing company headquartered in Lincoln, Nebraska. Our products and services gather, process, and distribute information in the form of trade publications, websites, and online services that connect buyers and sellers across the aviation, construction, agriculture, and commercial trucking industries. Our integrated, industry-specific approach to hosted technologies and services offers solutions that help businesses large and small operate efficiently and grow securely, cost-effectively, and successfully. Sandhills Global—we are the cloud. About the Sandhills Equipment Value Index The Sandhills Equipment Value Index (EVI) is a principal gauge of the estimated market values of used assets—both currently and over time—across the construction, agricultural, commercial trucking, and aviation industries represented by Sandhills Global marketplaces, including Controller.com, AuctionTime.com, TractorHouse.com, MachineryTrader.com, TruckPaper.com, and other industry-specific equipment platforms. Powered by FleetEvaluator and AircraftEvaluator, Sandhills' proprietary asset valuation tools, Sandhills EVI provides useful insights into the ever-changing supply-and-demand conditions for each industry.

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AVIATION TECHNOLOGY

Artemis Aerospace discusses aviation in the post-pandemic era and why now is the time for optimism

Artemis Aerospace | February 21, 2022

Jim Scott, owner of components solutions experts Artemis Aerospace, discusses how he sees the aviation industry adapting and emerging from the COVID-19 crisis. The pandemic has changed the aviation industry irrevocably. Unlike any other crisis in the sector's history, COVID-19 not only grounded numerous aircraft, wiped billions from industry revenues and cost 200 million jobs, but it also fundamentally changed consumer behaviour overnight. However, despite these extraordinary setbacks and unparalleled circumstances, as we emerge and recover from the pandemic, one thing has become clear: the aviation industry has a unique opportunity for transformation. The acceleration of some technological advances that were already in the pipeline, such as automation, along with new business models and growing travel demand are sparking the dawn of a new era – one that ultimately has efficiency and environment at its heart. Automation – increasing efficiency in a restricted world While automation has long been a buzzword in the world of aviation, technological advances and investment in automated services for both the commercial and cargo sectors have surged over the last couple of years. Automated innovations have been crucial to maintaining operations throughout the pandemic, instilling passenger confidence and creating safer working environments for employees across the board. There is no doubt that automated innovations will continue to evolve as we navigate the new aviation ecosystem. From touchless check-ins to contactless immigration and supply chain support, automation in a post-pandemic world will generate greater efficiency and help to solve many of the challenges we face going forwards as we work towards getting back to pre-pandemic levels of business. Transforming the business model Traditionally, business travellers have always been the main revenue source for commercial operators with 75% of airline travel profit attributed to passengers travelling for work. However, with business travel unlikely to recover to pre-pandemic levels anytime soon, airlines will have to reinvent and rework their business models to address this. Past crises have demonstrated that business travel takes the longest to recoup. For example, it took four years following 9/11. The added complications brought about by COVID-19, such as the popularity of remote working and online meetings – along with their associated cost savings – has meant it is likely that business travel, while still a necessity in certain situations, will not reach its previous levels ever again. Meanwhile, leisure travel has rebounded more quickly than forecast and, indeed, as long as people have been allowed to fly, the demand has still been there. With this in mind, airlines will need to assess and restructure cabin configurations, landing slots, networks, aircraft sizes and ticket pricing to maximise their potential while business travel remains subdued. However, growth is not limited to passenger traffic and cargo is still estimated to increase – even double – over the coming decade. Ecological advances Despite the lull of the last two years, flights are expected to double in the next 20 years, so, as an industry, we have a responsibility to ensure we are doing everything we can to minimise our environmental impact. Biofuel and electrically powered aircraft are key to reducing the carbon footprint and environmental impact of air travel – and we are closer than ever before to making these a reality for commercial airlines. While there is still some way to go in rolling out biofueled aircraft across the industry, Boeing has already committed to making planes that fly on 100% biofuel by 2030 and even staged the first commercial flight in 2018 using 100% biofuel. Likewise, as far back as 2010, the Swiss company Solar Impulse built an electrically powered aircraft that could run on solar power during a 26-hour trial flight. These advancements have continued, with Harbour Air's thirty-minute flight of its six-passenger DHC-2 de Havilland Beaver and NASA's new all-electric plane that is currently in development. It is possible that, much like motor vehicles, jet planes will eventually become hybrid alternatives with the benefit of reducing environmental impact, cuttings fuel costs and lowering maintenance expenses. Aviation – at the forefront of innovation As an industry, aviation has achieved so much. Not only has it become one of the safest and most reliable modes of transportation in the world, it has also contributed exponentially to social and economic development. The allure of travel and connecting people with places – along with cost-effective and quick methods of transporting cargo – will always be attractive options and undoubtedly this will continue well into the future. The question now is not "Will aviation reach pre-pandemic levels?" but "When will it surpass pre-pandemic levels?"

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Spotlight

The CH-53K is a further development of theCH-53E Super Stallion Helicopter developed for US Marines, Air Force and Sea Stallion, a naval version of the helicopter. Equipped with Fly-by-wire technology and fully digitized glass cockpit USMC has 200 Helicopters on order, valued just over $25 billion or approximately $125 million per unit.

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