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Shell Looks To Be Leader in SAF Production

Global petroleum producer Shell announced plans to begin production of approximately 2 million tonnes a year of sustainable aviation fuel by 2025.

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Global petroleum producer Shell announced plans to begin production of sustainable aviation fuel (SAF), adding approximately two million tonnes a year to the world’s SAF supply by 2025. Currently, the company distributes SAF produced by other companies.

The fuel giant last week made the final decision to commission the construction of a new biofuel production facility at its Netherlands energy and chemicals park in Rotterdam, which when completed would make it one of the industry’s leading SAF producers.

The news comes on the heels of a report generated by the company and Deloitte, which interviewed more than 100 aviation industry executives and experts who concluded that “the current global industry targets are not ambitious enough, and that the aviation sector should aim to achieve net-zero emissions by 2050.” Shell also aims to have SAF equal to at least 10 percent of its global aviation fuel sales by 2030.

“Currently, [SAF] accounts for less than 0.1 percent of the world’s use of aviation fuel,” noted Shell Aviation president Anna Mascolo. “With the right policies, investments, and collaboration across the sector, we can accelerate aviation’s progress towards net-zero by 2050.”

Source: https://www3.ainonline.com/aviation-news/business-aviation/2021-09-20/shell-looks-be-leader-saf-production

Aviation

Vietcombank buys $3.6mn worth of new Vietnam Airlines shares

Most extensive and up to date airline knowledge base: More than 50,000 aircraft, 6,500 airports and 5,000 airlines, access to fleet lists, worldwide airline schedules and route networks, airline management contacts, airline capacity and frequency analysis, airline PSS directory, up to date airline and route network news.

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Vietcombank, a majority Vietnamese state-owned commercal bank, has signed up to buy 8.35 million shares in Vietnam Airlines (VN, Hanoi) in a deal expected to be worth VND83.5 billion (USD3.6 million), it announced in a stock exchange disclosure.

In the troubled flag carrier’s VND12 trillion dong (USD528 million) rescue package approved by the National Assembly last year, Vietnam Airlines was allowed to issue new shares worth VND8 trillion (USD352 million) to existing shareholders to raise capital.

With a shareholding of 14.8 million shares, Vietcombank’s acquisition of further 8.35 million is expected to conclude by September 17. That will take its stake to 23.1 million shares, equivalent to 1.044% of the airline’s charter capital.

Earlier this week, as previously reported, Vietnam’s sovereign wealth fund the State Capital Investment Corporation (SCIC) also bought into Vietnam Airlines’ rights offering as part of state-led efforts to save the airline. It paid VND6.89 trillion (USD303 million) to acquire 689.5 million shares, so that it now holds “at least 31.08% of Vietnam Airlines’ charter capital,” it said.

Nevertheless, Vietnam Airlines’ share price unexpectedly declined by 6.4% on September 15 after seven consecutive days of increase and continued to decline on September 16.

Nevertheless, Vietnam Airlines’ share price unexpectedly declined by 6.4% on September 15 after seven consecutive days of increase and continued to decline on September 16.

Source: https://www.ch-aviation.com/portal/news/107882

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Aviation

Tuesday 7 September 2021 – Morning Call Top Aviation News Stories

Welcome to Morning Call for September 7, 2021, and the Top Aviation News Stories for today.  You can also search our Archives for older news stories by date.   AirInsight US Airline Index Commercial Aviation Delivery of Boeing Dreamliners delayed again amid regulatory scrutiny – The Hill COMAC: …

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Welcome to Morning Call for September 7, 2021, and the Top Aviation News Stories for today. You can also search our Archives for older news stories by date. AirInsight US Airline Index

Commercial Aviation

  • Delivery of Boeing Dreamliners delayed again amid regulatory scrutiny – The Hill
  • COMAC: Cumulative ARJ21 flight hours exceed 100,000 – CTC
  • Can Boeing build aeroplanes that fly? – Times of Malta
  • 737 MAX flyers win class cert in Boeing, Southwest RICO suit – Law360

Business Aviation

  • Embraer delivers 1,500th business jet, a Phenom 300E to Haute Aviation- Asian Aviation
  • Perspectives: Universal handling a ‘tremendous increase’ in charter – BAN

Airlines

  • Ryanair calls off negotiations on major order of Boeing 737 MAX10s – UPI
  • Is the recovery of travel demand about to fizzle out, or just experiencing a seasonal lull?- Forbes
  • Ethiopian Airlines settles with Boeing following 737 MAX crash and expects to fly the jet again by January – Seattle Times
  • How 9/11 changed travel forever – CNN
  • ‘Tesla of the skies’: This French start-up wants to take zero emissions electric aircraft mainstream – Euronews

Urban Air Mobility

  • EHang’s EH216 EVTOL and Falcon drone perform flight trials in Europe – Future Flight
  • UK Urban Air Mobility consortium publishes UAM guide for communities – UAM News

Social Media

  • Tunnel Flying – Twitter
  • Working on the flight deck of an aircraft carriers can be extremely dangerous! – The Aviationist

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Source: https://airinsight.com/tuesday-7-september-2021-morning-call-top-aviation-news-stories/

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Is the aviation market ready for new players ?

With at least 3 new airlines set to take off, consumers can expect more options soon

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The aviation market is poised for the entry of new players including Akasa and Jet Airways with asset cost at an all-time low, talent in abundance, and incumbent airlines struggling with legacy issues.

The new airlines will be able to operate with vastly reduced costs at a time when passenger traffic is set to rebound.

Recently, Rakesh Jhunjhunwala had decided to invest in Akasa, an airline started by former -Jet Airways’ CEO Vinay Dube.

Jet Airways is also looking to restart operations by the end of this year under its new owners Kalrock-Kalan consortium.

This comes at a time when all the incumbent airlines are facing huge headwinds and increasing losses. Aviation is a sector in India where at least 50 players have shut shop in the past three decades.

But according to Koushik Jagathalaprathaban, Partner, AT-TV, a consultancy firm, the market is extremely ripe at the moment for a new player to enter, especially “with asset cost at an all-time low, talent in abundance and airlines unable to reset their cost bases.”

IndiGo, SpiceJet and Vistara have been negotiating their lease rentals, deferring payments to vendors, and cutting employee costs.

Boon for startup airlines

According to experts, This is a boon for startup airlines to get good talent at a lesser cost.

Vinamra Logani, Head of Operations for Sarin & Co. pointed out that post Jet Airways’ grounding in 2019, several pilots were jobless. With the pandemic at its peak, several Indian pilots who were employed by Gulf airlines were laid off too. In the current scenario, this would be extremely beneficial for the startups when it comes to hiring good talent.

“Not only that, Original Equipment Manufacturer (OEMs) such as Boeing, Airbus and Embraer will be more than willing to negotiate at this point in time for a large aircraft order. Even if they were to go for the SLB routes, lessors will be available to cut them a better deal,” said Logani.

Even though the existing players would try to reduce their costs, they would not have a vast difference to the pre-pandemic cost base “while a new entrant can set up a new cost base and hence has a chance for being more profitable.” This is the potential, AT-TV believes that Junjunwala has seen.

Whereas Logani said that there is more besides the current low costs. according to Logani, A major boon for the new entrants is that despite the pandemic, the Indian airports continued to expand capacity.

Both Delhi and Bangalore airports are getting their fourth and second runway soon. In the next few years, the Navi Mumbai airport too is likely to be operational.

“So for any startup airline, landing slots at key airports won’t be a paucity-which is extremely important for new airlines,” Logani said.

From a market point of view, Logani said that even today, only four per cent of Indians fly. Since India is a price-sensitive market, the new Ultra Low-Cost Carriers, with a cleaner balance sheet will be better placed. Whereas, existing airlines are still looking to raise cash to stay afloat.

Both Logani and Kavita Chacko, senior economist- Care Ratings believe that the new entrants would be better positioned in this case to be able to offer more discounts.

Chacko said that “It was noticed in the recent past that there was a pent-up demand for travel. This means that though people do not have a lot of money, they’d want cheaper options to travel.”

Aviation sector recovery

However, Jagannarayan Padmanabhan, director, Crisil said that it must be taken into consideration that the Aviation sector has been one of the hard-hit sectors globally. The expectation is that it will take at least 3 quarters more to reach pre-pandemic levels.

“Given this backdrop, it will be a significant challenge for a new entrant in the initial years to gain and establish market share. Much will depend on the business plan that they plan to adopt,” he said.

The challenges in Indian aviation continue to remain—issues of higher operating costs, taxation on ATF, cutthroat competition resulting in the cheapest fare in the world and are not likely to be addressed any time soon.

This would surely mean more competition for the existing players and more options for Indian flyers in return to get competitive airfares.While failure or contraction cannot be ruled out for existing players with extremely weak balance sheets and issues with liquidity,” said Jagathalaprathaban,

“With the entry of a new airline pressure in cost, competition and cash-flow will only increase.” he added.

Source: https://www.thehindubusinessline.com/economy/logistics/is-the-aviation-market-ready-for-new-players/article36041510.ece

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