208 - John Heimlich, VP/Chief Economist at Airlines for America
Oct 11, 2023
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John Heimlich, VP/Chief Economist at Airlines for America, discusses recent developments in the industry like hydrogen fuel, supersonic flights, and Boeing's selection of Pratt & Whitney's engine. They explore airline decision-making, fleet upgrades, and marketing advantages. John Heimlich also provides an assessment of airline finances, debt situation, and analyzes United Airlines' recent aircraft order.
Passport renewals and new applications have experienced significant delays, but the processing times have improved.
The aviation industry is witnessing advancements towards hydrogen as a clean fuel for airplanes and potential implications for supersonic travel.
Deep dives
Passport Renewals Back to Normal
Passport renewals and new applications have experienced significant delays, but the processing times have improved. The speaker shares their personal experience of receiving their new passport within four weeks after paying for expedited service. The State Department reports that regular renewals now take about 8 to 11 weeks and expedited services take five to seven weeks.
Airline Earnings and Travel Trends
The revenge travel trend, characterized by a surge in travel after the pandemic, seems to be slowing down. Airlines are experiencing a return to a more normal seasonal pattern, and this trend will be further analyzed as Delta reports its third-quarter earnings. The guest, John Heimlich, the chief economist at Airlines for America, will provide insights into the softening demand and its potential impact on airline revenues.
Futuristic Developments in the Aviation Industry
Several significant developments in the aviation industry suggest a shift towards more futuristic advancements. Rolls-Royce successfully conducted a controlled hydrogen burn in a jet engine, indicating a potential future for hydrogen as a clean fuel for airplanes. Pratt & Whitney's geared turbofan engine was selected by Boeing for its sustainable flight demonstrator, showcasing advancements in reducing fuel burn and carbon emissions. Boom Supersonic has also moved forward in the FAA certification process for its overture airplane, with potential implications for supersonic travel.
United's Fleet Planning Strategy
United's recent aircraft orders reflect a combination of replacement and growth plans. The order includes a mix of wide-body and narrow-body aircraft, aiming to match capacity needs while prioritizing fuel efficiency and sustainability. The strategy may be targeted at taking market share from competitors, such as American Airlines and Southwest. The order also factors in potential demand growth, while considering the long-term perspective and natural traffic increase over the next decade.
This week: John Heimlich, VP/Chief Economist at Airlines for America; Scott's passport renewal; Pratt & Whitney engine selected for NASA project; Is Hydrogen the aviation fuel of the future? Price points on upgrades; Listener Q: United's large aircraft order, United / AA battle for Chicago, fleet planning.
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