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Aviation Industry Updates: June 13, 2023

James Onieal : Jun 13, 2023 9:35:11 AM

Industry News Export

House Releases Sweeping FAA Reauthorization Package

KEY POINTS:

The leadership of the House Transportation and Infrastructure Committee (T&I) and aviation subcommittee unveiled their nearly 800-page FAA reauthorization package today, addressing further FAA reforms, enhanced aviation safety, general aviation, workforce growth, and airport infrastructure support, among other issues.
Importantly, the bill, the Securing Growth and Robust Leadership in American Aviation Act, would reauthorize the FAA’s operating authority for five years, providing continuity at an agency that is undergoing a transition after several tumultuous years. Congress is facing a September 30 deadline to complete work on a reauthorization package before the current FAA operating authority expires.
As promised by T&I Chairman Sam Graves (R-Missouri), the bill has an entire title dedicated to general aviation—a first in a reauthorization bill—with measures addressing everything from expanding BasicMed and data privacy to protecting GA airports from closure and ADS-B incentives.
Further, the bill takes aim at one of the chief complaints from the business and general aviation community: a lack of FAA resources to timely address certification, inspection, check airman availability, and other necessary services. Measures touch upon Part 135 check airman reform as well as the air carrier certification backlog and policy consistencies, among other areas.
Another title is squarely focused on growing that talent pipeline for the aviation workforce, addressing development, training, and retention.

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Wheels Up and Delta Focused on Growing Corporate Customers

KEY POINTS:

The fastest growing part of Wheels Up is its enterprise programme. The corporate team produces about a quarter of all sales. Wheels Up’s corporate enterprise solutions (CES) customers – who spend more than $500,000 a year – are the company’s fastest growing segment, with 117.6% growth compared with last year.
“We are seeing no signs of demand falling,” said Robert Bourrier, EVP global corporate sales, Wheels Up. “Demand from corporates is stronger than ever.”
Bourrier joined Wheels Up when it acquired Delta Private Jets in 2020. Before that he worked in corporate sales at Delta Air Lines. Delta Private Jets had a corporate scheme which Wheels Up adapted and formally launched two years ago.
In April, Wheels Up announced a closer partnership with 20% shareholder Delta Air Lines to add even more enterprise accounts. “We’re focusing on very strategically targeting those opportunities and bringing new opportunities to Wheels Up from the Delta relationship,” said Bourrier.
Wheels Up customers can use their funds to buy Delta flights. Delta customers can also buy Wheels Up flights.

Corporate Jet Investor

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American Cuts Flights And Salespeople As Habits Of Business Travelers Change

KEY POINTS:

American Airlines, a large employer at Philadelphia International Airport, is shifting how it manages corporate travel.
The company, which operates out of five of PHL’s seven terminals, saw 30% of its revenue come from business travel at the beginning of this year, down from 40% in 2019, according to reporting from the Wall Street Journal.
The company is changing how business travelers book flights and has cut 40% of the 350-person sales team that deals with agents and corporate partners.
“In the past, customers who booked travel through third-party distribution partners may have had subpar booking and travel management experiences with limited access to fares and packages,” reads a note on American Airline’s website.

Inquirer

JSX Air Hits Back

KEY POINTS:

US public charter operator JSX Air responded to criticisms from American Airlines and the Air Line Pilots Association (ALPA) in a new regulatory filing to the Department of Transportation (DOT). The criticisms center around JSX’s business model that allows it to operate on pre-scheduled trips while utilizing pilots with fewer than 1,500 hours of flight experience and avoiding TSA security checks for its passengers.
The ALPA, along with a cadre of other pilot unions, submitted a filing on May 5 expressing their concern over the operating model of companies like JSX. American Airlines also submitted a filing to the DOT on May 16, in which they characterize JSX as a “scheduled charter” that exists due to the exploitation of a regulatory loophole.
JSX Air Chief Executive Officer Alex Wilcox said these criticisms mischaracterize the company’s business model and amount to a “political campaign to outlaw JSX.”

Simple Flying

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