Aviation Industry Turns to Used and Generic Parts, Rising Costs Weigh on American Airlines' Profit Forecast, and More

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Airlines Facing Cash Flow Problems as Governments Block Overseas Funds

Airlines are incurring unnecessary costs as they are unable to repatriate their overseas sales funds in a timely and unrestricted manner. This is due to foreign exchange shortages or regulatory barriers implemented by certain governments, causing airline funds to sit idle in foreign bank accounts. 

The International Air Transport Association (IATA) has reported that as of February 2023, the total amount of blocked airline funds has reached $2.3bn worldwide, with Africa/Middle East accounting for $1.8bn. 

This prevents airlines from accessing funds that are owed to them, leading to cash flow problems, reduced profitability, operational difficulties, reduced investment, and reputation damage. IATA has urged governments to work with the aviation industry to resolve these issues. source

Photo by Stefan Fluck on Unsplash

Volocopter 'Flying Taxi' on Track to Carry Passengers at Paris Olympics

Volocopter, the company behind the “flying taxi” project for the Paris Olympics, says it is “on track” to get certification in time for the Games, despite admitting the deadline is a challenge. 

The two-seater aircraft, which looks like a large drone with 16 motors and sets of propellers around a cabin, took a short flight from the newly opened ‘vertiport’ at Pontoise-Cormeilles airfield in November. 

Volocopter’s certification process for the Volo-City model is expected to be completed by the summer of 2024. Journey prices could be in line with those of chauffeur services between airports and the Paris center. source