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has already been damaged or destroyed and could take up to three years to restore. The Bank of England’s
financial policy committee warned the economic shock “will weigh on growth, increase inflation, tighten financial conditions [and] increase the likelihood that multiple vulnerabilities could crystallise”, and the International Monetary Fund gave notice that: “All roads lead to higher prices and slower growth.” Hopes of avoiding a jet fuel
shortage in the UK amid the conflict looked increasingly misplaced and may remain so. Ryanair chief executive
Michael O’Leary warned last week that “of all European countries, the one most vulnerable [on jet fuel] is the UK because of the market share the Kuwaitis have”. Kuwait is a major supplier of kerosene to Britain. O’Leary noted: “If there is a
risk to 10% or 20% of the supply in June, July or August, we’ll start looking at taking capacity out.” Lufthansa chief Carsten
Spohr told employees the group is preparing crisis plans including “cancellation of unprofitable routes” and “early retirement of aircraft”. A survey of European airports
by operators’ association ACI Europe found one in 10 rated a jet fuel shortage as “high risk”. Significantly, Iata reported
even before the war: “Europe’s jet fuel supply is fragile, increasingly vulnerable [and] increasingly reliant on imports”, leaving airlines subject “to heightened risks [to] supply, pricing and operational stability, particularly if geopolitical shocks constrain jet fuel availability further”.
Walsh to leave Iata early to become CEO at IndiGo
Ian Taylor
The announcement that Willie Walsh, former boss of British Airways and its parent IAG and current head of Iata, will take over as chief executive of Indian carrier IndiGo came as a surprise last week. Walsh, who is 64, had been due to
remain at Iata till July 2027. Instead, he will take over at IndiGo by August 3 after chief executive Pieter Elbers resigned in early March. IndiGo, India’s largest carrier,
was plunged into crisis in December when new regulations on pilot hours came into force and left it hugely short-staffed, requiring cancellation of more than 4,500 flights. India’s aviation regulator
suspended the regulations, despite protests by pilots who pointed out airlines had been given two years to adjust, and launched an investigation, which resulted in the carrier being fined. Elbers departed abruptly saying
He was hailed for leading BA IndiGo
he had stepped down for “personal reasons”, with IndiGo’s billionaire co-founder and board member Rahul Bhatia taking charge. Bhatia told staff the cancellations “should never have taken place”. Announcing Walsh’s appointment,
Bhatia said: “His experience in managing large-scale airline operations and navigating complex market dynamics make him ideally suited to lead IndiGo.” Walsh led BA from 2005 to 2011
when it merged with Iberia to form IAG and he became group chief executive, going on to acquire Aer Lingis and Vueling before stepping down in late 2020.
through the 2008 financial crisis and creating IAG. However, Walsh was criticised for the state of BA’s fleet after delaying its renewal and for presiding over the most serious industrial action in the airline’s history, which saw cabin crew strike for 85 days in 2017. Walsh also drew criticism,
along with his successor at BA Alex Cruz, for the mass sacking and re-employment on new contracts of BA staff during the pandemic shutdown – leading Walsh to step down in September 2020. He joined Iata in May 2021. Ironically, Walsh and Elbers
co-hosted Iata’s annual general meeting in New Delhi last June when IndiGo was chief sponsor. IndiGo has grown rapidly since
its launch in 2005 to account for two-thirds of India’s domestic flights and has plans for rapid international expansion. It launched flights from Manchester last July and Heathrow in October.
CAA proposes cap on Heathrow’s airline charges
The CAA proposed a cap on Heathrow’s charges to airlines for 2027-31 last week as it tries to steer a way between the airport’s need to fund a third runway and airlines’ opposition to paying for it. It proposes charges of £27.20-
£30.50 per passenger, or an average £28.80 through the period, up just
46 9 APRIL 2026
40p on 2022-26 – or 16% (£5.40) less than Heathrow sought and 25% (£5.80) up on airlines’ demands. Final proposals are due in
November and a decision by April 2027. Heathrow chief executive
Thomas Woldbye responded by warning: “The proposal may force choices that create trade-offs and delay delivery.” Days earlier, Heathrow
announced plans for a panel of ‘independent experts’ to advise on expansion and be “jointly appointed by Heathrow and
Heathrow
airlines” to ensure “greater transparency”, suggesting this would ensure learning the lessons “from the mistakes of previous mega projects such as HS2”.
travelweekly.co.uk
PICTURES: Shutterstock/Yosua Bintang, Rob Atherton, EvaL Miko
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