EGYPTAIR News 7 June

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IATA and UNEP sign Memorandum of Understanding to

address sustainability challenges in the aviation industry.

The International Air Transport Association )IATA( and the United Nations Environment Program )UNEP( have signed a Memorandum of Understanding )MoU( aligned with the UN 2030 Agenda for Sustainable Development to address sustainability challenges

Reduction of problematic single use plastics products )SUPP( and improving the circularity in the use of plastics by the industry is the initial focus of the partnership as UNEP leads global efforts to develop an international legally binding instrument on plastic pollution, including in the marine environment, by the end of 2024. Making aircraft cabins more sustainable is a priority for airlines and their passengers. The complex and asymmetrical regulatory environment, however, often poses an obstacle by preventing circular economy best practices. In the absence of a global approach, differing regulations at both ends of a journey severely limit the actions that airlines can take.

IATA advocates for a simplified and harmonized regulatory environment that would enable a reduction in plastic utilization and greater reuse, and recycling of cabin waste, including plastics, where they are needed. To this end, the partnership will step-up IATA’s engagement with UNEP to ensure that aviation’s unique challenges and opportunities are represented in the upcoming international legally binding agreement to end plastic pollution.

Already, IATA and UNEP are working on joint guidance on Re-thinking Plastics in Aviation. This comprehensive resource will encompass an overview of regulations, guidance on SUPP replacement, and recommended best practices for both industry and regulators.

“World Environment Day reminds us that sustainability is our number one global challenge. Formalizing IATA’s longstanding collaboration with UNEP will help airlines move even faster on improving the sustainability of the aircraft cabin. It’s critical that we achieve a harmonized global regulatory framework to enable airlines to implement more comprehensive and common circular economic solutions in all markets. For example, currently our hands are tied with outdated regulations focused on incineration rather than reuse and recycling. Modernizing that will be a big step forward for sustainability,” said Marie Owens Thomsen, IATA’s SVP Sustainability

and Chief

Economist.

“UNEP is looking forward to working with IATA, to helping the industry transition to net zero, reduce food waste and move away from SUPP. The aviation industry can also help by raising awareness among passengers and staff, and ensure that all stakeholders of the aviation value chain are engaged, and most importantly act in a joined-up way to end plastic pollution,” said Sheila Aggarwal-Khan, Director of UNEP’s Industry and Economy Division.

More than 400 million tonnes of plastic is produced every year, half of which is designed to be used only once. Of that, only nine percent is recycled, with the pollution it generates making it extremely urgent that global action is taken. Under this partnership, IATA and UNEP also plan to work together on knowledge sharing, guidance and networking in other key sustainability challenges including sustainable aviation fuel )SAF(, sustainable finance, climate adaptation, biodiversity conservation including preventing wildlife trafficking and sustainable tourism.

Aviation’s worst: Nigeria, Bangladesh, Algeria, Pakistan, Lebano …

n August 2022, Dubai’s Emirates Airlines cut all flights to Nigeria because the Nigerian government did not allow the carrier to withdraw their money from the Nigerian bank account and change it into convertible currency to wire it back to Dubai. This situation has not gotten better, but worse.

The top five countries account for 68.0% of blocked funds. These comprise:

Nigeria )$812.2 million(

Bangladesh )$214.1 million(

Algeria )$196.3 million(

Pakistan )$188.2 million(

Lebanon )$141.2 million(

The International Air Transport Association )IATA( warned that rapidly rising blocked fund levels threaten airline connectivity in the affected markets. The industry’s blocked funds have increased by 47% to $2.27 billion in April 2023 from $1.55 billion in April 2022.

Governments need to work with industry to resolve this situation so airlines can continue providing the connectivity vital to driving economic activity and job creation,” said Willie Walsh, IATA’s Director General.

“Airlines cannot continue to offer services in markets where they cannot repatriate the revenues arising from their commercial activities in those markets.

Two Codeshares In Two Days: Turkish Airlines Links Up With ITA Airways

Italian flag carrier ITA Airways and Turkish Airlines will launch a new codeshare agreement next month. The two airlines confirmed the deal on Monday, saying passengers will have more flexibility and flight choices. The partnership comes about 24 hours after Turkish Airlines announced a codeshare partnership with Icelandair on Sunday. The airline already flies to more countries than any other carrier in the world, and these agreements will only help to increase its reach.

Increased connectivity

The codeshare partnership will commence in July, giving travelers more options on both airlines between Italy and Turkey as well as onward connections. Fabio Lazzerini, ITA Airways' CEO and General Manager, spoke about the new agreement. With the codeshare partnership with Turkish Airlines, ITA Airways’ commercial strategy of growth makes a step forward, together with the existing partnerships with the world's leading carriers. This partnership opens up a privileged access route to Istanbul, one of the most fascinating and historically rich cities in the world for all ITA Airways passengers.”

Through the partnership, ITA's marketing flight numbers will be placed on Turkish Airlines flights between Rome and Istanbul. Similarly, Turkish Airlines will put its flight numbers on ITA flights, but not on just one route. Nine destinations that the Italian airline serves domestically will have Turkish Airlines' marketing flight numbers listed. The routes, originating from Rome, include Brindisi, Bari, Catania, Florence, Genoa,

Palermo, Lamezia Terme, Turin, and Trieste.

Bilal Ekşi, CEO of Turkish Airlines noted, "Rome and Istanbul have always been exceptional cities to attract and connect people...I firmly believe this codeshare agreement between Turkish Airlines and ITA Airways will be developing the existing network with even more destinations and foster cooperation and traffic between two countries with hig h potential." Passengers will also be able to connect to their flights seamlessly. “This partnership will be providing enhanced services to customers of both airlines with a seamless connectivity of a single ticket and through check-in of passengers and luggage to their final destination,” ITA said.

Two new partnerships

It seems as if one codeshare partnership this week was not enough for the flag carrier of Turkey. On Sunday, the airline signed an agreement with Icelandair, giving passengers increased connectivity to Icelandair's network across North America and Turkish Airlines network in the Middle East and Asia.

States agree to heighten aviation safety, security and sustainability through enhanced ICAO support for implementation

The thirteen States attending the Ministerial Roundtable at the event also pointed to significance of ICAO’s efforts to develop and deploy enhanced products and services in this area, and furthermore identified the deployment of sustainable aviation fuel )SAF( as a priority area for support from ICAO. Here, the Ministers envision ICAO’s facilitation of financing initiatives as being among the collaborative efforts the organization should undertake to spread access to new SAF technologies across the world. The outcomes of the Roundtable built on engaging and productive discussions between ICAO and representatives from 50 countries, which focussed on the evaluation of their priority needs and the development of proposals for implementation support from the organization. These efforts resulted in the signing of thirteen bilateral implementation support agreements between ICAO and the attending governments, and set the stage for further agreements in the near future.

As a result of the three-day event, which was attended by over 1000 stakeholders from around the world, ICAO will be in a position to collaborate even more closely with the international aviation community to enhance capacity. This was highlighted during the GISS by the unveiling of modernized branding for ICAO’s services in this area, which will be delivered by the soon to be named Capacity Development and Implementation Bureau.

The Republic of Korea’s Ministry of Land, Infrastructure and Transport )MOLIT( was pivotal to the success of the event, and its contributions and cooperation to providing this platform for collaboration, knowledge exchange, and networking among aviation regulators, operators, and other professionals were widely acknowledged and appreciated. The positive outcomes of this event will extend beyond the aviation sector, given the crucial importance of air connectivity as a catalyst for sustainable development at the local, national, and global levels. By enhancing the resilience and sustainability of the recovery of the global air transport network, governments will safeguard and heighten the economic benefits of their aviation sectors. /Public Release. This material from the originating organization/author)s( might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author)s(.

UK Proposes Sustainable Aviation Fuel Mandate from 2025

The UK has issued a notice of proposed rulemaking that will mandate jet fuel suppliers to blend sustainable aviation fuel )SAF( into aircraft fuel starting in 2025. It would set a 10 percent SAF blend requirement by 2030. A target mix for 2025 has not yet been set. Less than a year ago, the UK launched the Jet Zero Strategy, setting out how the country will deliver on its commitment to reach net-zero aviation emissions by 2050. The SAF mandate is the latest of several measures underway in the strategy program. This strategy assumes a 50 percent SAF uptake by criteria; how carbon certificates will be issued, traded, and used for compliance; interactions with other domestic and international emissions policymakers; and how the mandate will be enacted. “We have already invested in early-stage development of eight UK SAF plants,” the proposal notes. The proposal seeks comments on SAF targets set for 2030 and beyond; eligible fuels; and how sustainability will be administered and enforced. Comments are due by June 22.

“Now, more than ever, the [aviation] sector is recognizing that sustainability has to be at the core of its business, as it begins to transform for a net-zero world,” the proposal says. “Progress on decarbonizing is continuing at pace with aviation sector emissions expected to have peaked in 2019.”

Aviation sector is booming: Rolls-Royce share price could benefit

The civil aviation industry is doing better than expected. In a report, IATA, the industry’s trade body, said that the industry’s profits this year will jump to over $9.8 billion. The body previously estimated that the industry will make $4.7 billion. Therefore, if the report is accurate, it could benefit a company like Rolls-Royce )LON: RR(, which provides services to airlines.

Aviation sector rebound gains steam

Most airlines published strong financial results recently. Delta Airlines reported a loss of over $363 million, sharply lower than last year’s $940 million. American Airlines’s net income came in at over $10 million after it lost over $1.3 billion a year earlier. Other companies like Singapore Airlines and IAG reported strong results. Analysts believe that the aviation industry will continue doing well in the coming months. For one, airfares in many countries are falling while demand is still at an elevated level. As noted, IATA believes that the companies’ revenue will continue soaring this year.

This trend could benefit Rolls-Royce, a company that provides services to airlines. The company makes most of its money by providing engine services to airlines like Emirates, British Airways, Qantas, Lufthansa, and Singapore Airlines. Rolls-Royce Holdings make most of its money providing these services. In some instances, the company does not make money selling engines. Instead, it enters longterm contracts where it is paid to provide mandatory contracts. Still, Rolls-Royce is facing a challenge from Boeing and Airbus, the biggest manufacturing companies in the industry. The two companies have already received over 1,200 orders this year, which is another sign that the industry is booming. However, the two companies are struggling to fill these orders because of parts delays. The only tailwind is that Rolls-Royce is being called upon to service retired aircraft that are coming back to service.

The daily chart shows that the RR share price has been in a strong bullish trend for a few months. Recently, however, the stock has struggled moving above the key resistance level at 158.20p. It remains slightly above the 50-day moving average while the Relative Strength Index )RSI( has formed a bearish divergence pattern. Therefore, the outlook of the stock is neutral for now. More upside will be confirmed if it moves above the key resistance point at 158.20p. A move above that level will see it jump to 200p, as I wrote in this article.

Preparation by Public Relations