Top Copyright Photo: American Airlines Airbus A321-231 N582UW (msn 6175) (1977 PSA heritage livery) LAX (Michael B. In addition, seasonal service to Destin-Fort Walton Beach, Montego Bay and Tulsa will not be reinstated. Punta Cana, Dominican Republic – March 30 Here are routes being suspended or dropped and the dates: These routes will be dropped from Austin-Bergstrom International Airport between January and April 2024. In Iceland, Finnair will add three more weekly frequencies to Keflavik (Reykjavik).Īmerican Airlines has identified the 21 nonstop routes from Austin that are being dropped in 2024. All these flights will connect seamlessly with Finnair’s flights to Northern Finland, Scandinavia and Japan. Manchester will get five additional weekly frequencies, and Dublin and Edinburgh will both get two additional weekly frequencies. Las Palmas flights will be operated with the Airbus A350.įinnair is also adding more flights to the British Isles for the next winter season. There will be three weekly incremental frequencies to Dubai with the Airbus A330 aircraft. There will be two weekly frequencies to Faro in Portugal and Lanzarote and Fuerteventura in the Canary Islands.įinnair will also start operating two popular leisure destinations with widebody aircraft. If 100% SAF usage proves feasible and safe on the existing aircraft technology without material upgrades, then it would be positive for the sector because it would help accelerate decarbonization without material capital expenditure requirements.įinnair is also updating its winter 2024 schedule and adding flights to the British Isles, Iceland and leisure destinations in Portugal and the Canary Islands.įrom October 2024, Finnair will begin scheduled flights to three of its former charter destinations. This is primarily because of safety concerns associated with using 100% SAF, which are feared to cause issues such as shrinking elastic tank seals leading to fuel leakage. This limits the full potential of carbon reduction that could be achieved through SAF usage. Assuming the transition will be gradual, and the aviation and energy sectors continue to invest in scaling up production and reducing cost, the impact on airlines is likely to be manageable.ġ00% SAF in Existing Aircrafts Could Save Additional Capital Expenditure Requirements for AirlinesĬurrently, the industry is only permitted to blend its fuel up to 50% SAF. Regulators are also likely to play an important role in determining the pace and cost of decarbonization. Credit implication for airlines will depend on the impact from the higher cost of SAFs on air travel demand and airlines’ margins. Higher cost of the fuel and production bottlenecks are also material challenges, as discussed in further detail below.Īs we discussed in our October 10, 2023, commentary, we believe SAF will play an important role in the airline sector’s strategy to achieve its long-term decarbonization targets. In addition, fuel infrastructure upgrades to accommodate 100% SAF might also be required. Technology questions regarding whether modifications to current SAF properties and/or existing aircraft will be required remain unanswered at this stage. Despite this positive development, broad 100% SAF usage at scale will take years as significant hurdles remain.
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