We all knew this would be coming, but make sure your airline is not accepting Bitcoin today as the currency is collapsing due to a seemingly inevitable software bug that makes it possible to alter transaction details over the network. Panic selling is underway, but as far as we can see there are only three travel agencies booking flights in Bitcoin and other than that Virgin Galactic seems to be the real possible looser as it is accepting Bitcoin for flight bookings, so today might be a good day to book that space flight using Bitcoin….
Meanwhile Yemenia or Yeman Airways recently had trouble getting one of their aircraft out of Paris CDG and no matter what the reason for this problem and eventual three-day departure delay, one must consider the ongoing matters that surround the airline. A source at the airline cites problems over aircraft payment installments to Airbus, another points to the ongoing spat between Total and the Yemeni government and then there remains the manslaughter charged leveled against Yeman Airways by French courts over the 2009 Comoros Islands crash that killed some 152 passengers and crew. Whatever the problems at CDG last week, one thing is certain: Yemenia transferred $6m of funds to Airbus the day the aircraft was allowed to leave. Many parts suppliers that remain unpaid at this time might find that of interest.
Meanwhile an Air India aircraft had to be diverted from Delhi this weekend since the aircraft has not yet been deemed compliant by the Directorate General of Civil Aviation (DGCA) for landing in low visibility, something that is very common during the winter months in Delhi. The fact remains that as Air India moves to 787 operations, it is doomed to building a bad reputation as its flagship routes get diverted time after time due to low visibility at Delhi during this period.
Meanwhile all the news remains about the APAC region during this Singapore Air Show week and although Boeing and Airbus say that trillions of dollars’ worth of aircraft still need to be ordered to cover off APAC demand over the next few decades, there remain worries today about the general health of many airlines: from Australia where the price war has left all airlines damaged to India, through to Indonesia where currency fluctuations have left airlines badly damaged. Of course in all this one has to worry about the attractiveness of leasing aircraft in US Dollars and it remains to be seen if pressure will be put on lease rates during this protracted period of currency weakness in many emerging markets or indeed if rates will hold but demand cool or indeed both factors come into play. Another worry for lessors is the possibility of airlines getting into difficulty and handing back aircraft early or looking to re-negotiate terms. We are already seeing some of this and once again it looks like it is the A320 family that will see lease rates cool as more aircraft become available due to the aforementioned factors. Malaysian airlines are still matching capacity and demand well, as mentioned before, but two Malaysian airlines have told this service that they are starting to feel some significant pressure on margins as oil, parts, lease costs and some point costs start to increase.
But there is always a silver lining and in 2014 that should be the expansion of Chinese low-cost operations after the lowest price limit of 45% was scrapped in an effort to boost capital investment in budget airlines across China. The Chinese central government relaxed aircraft purchase and route application regulations some time ago now and that is filtering through the system already with applications for new aircraft purchases cut from five month averages to nine weeks.