Taxing Changes to Middle East airlines: According to sources, some U.S. airlines have been lobbying for our Congress to look at the tax exemptions given to some Middle East carriers.
Now, in response, Sen. Johnny Isakson [R–Georgia], added language to the Republican tax plan this month that would change income tax exemptions provided to some international competitors thereby making it less profitable to operate here. The approach is apparently aimed at three airlines based in Qatar and the United Arab Emirates: Etihad, Emirates and Qatar Airways.
Some larger U.S. airlines have been pressuring the federal government to intervene against the three foreign carriers for several years creating an increasingly contentious international battle.
There is also good news for some U.S. airlines if the proposed tax plan is approved. Benefits of these changes would apply to smaller airlines or those with specific organizational tax status.
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Hainan Airlines began its service from JFK Airport to It now flies JFK to Chengdu and Chongqing, China.
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Avianca Brazil will operate flights out of Terminal 4 as Ocean Air beginning December 16th.
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Air France will be flying in its new Boeing 787y Dreamliner on December 20.
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Volcano Rocks Bali: Airlines had cancelled all flights to and from the Indonesian island of Bali due to volcanic activity for three days following a volcanic eruption.
The Mount Agung volcanic eruption had Indonesia issuing its highest “red” alert for aircraft, halting Cathay Pacific, Air France KLM, Qantas, Virgin, Air Asia, Jetstart and Garuda Indonesia flights to and from Denpasar Ngurah Rai International Airport on Bali.
Indonesia warned that the ash cloud could reach 19,654 feet or higher making it potentially dangerous for airlines to fly in that space. Cathay Pacific Cargo said its operations at Denpasar had been affected by the with volcanic ash cloud “causing limited visibility and potentially difficult conditions for flight operations.”
As of Nov 29,the airport reopened.
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Bitcoin Payment Acceptance Grows in 2017: Peach operates budget domestic flights to Korea, China and Thailand. It has confirmed Bitcoin would become a payment option by the end of 2017. Peach will become Japan’s first airline to accept Bitcoin as the country’s regulatory changes start paying off
“Now you can travel without your physical wallet,” CEO Shinichi Inoue said at a press conference. “I think this is innovation; we’ll put all our energy into it.”
In the U.S. BTN’s are currently placed in airports around the country and often accepted for parking. Peach also plans to install Bitcoin ATMs at airports and hopes the retail sector will get on board in offering payments as well.
Japan is moving towards more acceptance on Bitcoin following legislative changes which allowed it to be treated as currency. There is active interest in cryptocurrency here in the states as Bitcoin valuation in near $10,000, after moving from about $4,000 just 3 months ago.
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Airlines Industry Not Flying High in 2017: In 2015, the U.S. airline industry posted a record profit of $25.6 billion. That shrank to $13.5 billion in 2016. This year, Deutsche Bank analyst Mike Linenberg expects another decline, with profit down 18 percent to $11.7 billion — despite a 4 percent gain in revenue to $159 billion.
In addition, this year, not a single airline share has performed as well as the SP 500, which so far in 2017 has gained 15.6 percent. In 2015, the U.S. airline industry posted a record profit of $25.6 billion. That shrank to $13.5 billion in 2016. Analysts expect another decline, with profit down 18 percent to $11.7 billion — despite a 4 percent gain in revenue to $159 billion.
Also this year, not a single airline share has performed as well as the SP 500, which so far in 2017 has gained 15.6 percent. In 2015, the U.S. airline industry posted a record profit of $25.6 billion. That shrank to $13.5 billion in 2016. This year, Deutsche Bank analyst Mike Linenberg expects another decline, with profit down 18 percent to $11.7 billion — despite a 4 percent gain in revenue to $159 billion.
Also this year, not a single airline share has performed as well as the SP 500, which so far in 2017 has gained 15.6 percent.
The leading airline, Southwest Airlines Co. has gained 8.6 percent this year. Delta Air Lines Inc. (DAL has risen 2.5 percent, while American Airlines Group Inc. has gained 1.6 percent.
All the other airline shares are down, with declines ranging from 14.4% at JetBlue Airways Corp.to 41.2% at Hawaiian Holdings Inc.
On the other hand however, under the new proposed tax reform, Alaska Air, Hawaiian Holdings, JetBlue Airways, and Spirit Airlines are all cash taxpayers today. Thus, they would get an immediate benefit from a lower statutory corporate tax rate.
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More “People’s Express”-type airlines: People’s Express back in the 80s was one of the first low cost airlines. Now, British Airways’ owner IAG is expanding its low-cost long-haul airline Level by basing two planes at Paris Orly airport and launching four new routes. Orly will be home to two Airbus A330-200 planes which will fly to Montreal, New York, Guadeloupe, and Martinique.
Level was started nine months ago in Spain to compete with other long-haul budget airlines such as Norwegian Air Shuttles and Wow Air.
Darwin Airline has announced it will cease all scheduled operations. It is reported that the company has entered into reorganization proceedings after it was declared to be insolvent. Now, the company will revert to being a charter airline serving the Geneva, Lugano and Rome markets.
In related news, the airline had recently re-branded as Adria Switzerland in association with Adria Airways on September 16, 2017 but has encountered unfavorable market conditions. #survival of the fittest.
