Monday Insight – June 6, 2022

Air Traffic: The Storm Clouds Are Gathering

Open question regarding air traffic growth: Is the well-known substance about to hit the electrical convenience?

Yes, there are lots of press releases about one airport or another seeing record traffic, exceeding pre-CCP-pandemic levels. There are some projections that global air traffic will be back to 2019 levels by next year… or was it 2025?

Then again, there are the less-trumpeted stories of routes dropped, now ominously blaming fuel prices instead of just a pilot shortage. American parking 100 small jets. Add in massive increases in air fares, 8% inflation and erupting costs of jet-fuel, and we may start to hear fan-like noises from consumers that increasingly don’t have as much gelt to spend on air travel.

Pilot availability or not – these are factors that aren’t being touched by most analysts.

We’re not going to into it here.

We have a short 7-minute Aviation Unscripted video that takes a hard look at the near-term future.

Click here and invest a couple of minutes in perspectives that are not being openly discussed elsewhere.

Observance of Memorial Day. Monday Insight Returns June 6

Notice: Monday Insight To Be Published Next Week

In recognition of the US Memorial Day Holiday, the Monday Insight will be back on June 6.

  • In the meantime, check out the latest Aviation Unscripted videos, and the Touch & Go end-of week aviation review for our clients and friends. In the latest T&G we discuss the four air travel categories that will be affected by inflation and skyrocketing fuel costs in the 4Q of this year.

We are planning a range of incisive explorations into emerging aviation dynamic over the next few months… in all BGI information channels… No holds barred. For example, we’re planning to explore areas such as:

The Effects of increased inflation this fall on air travel demand…

The Expectation of Metro-Peripheral airport service opportunities…

The Twilight of unfocused ASD programs… Looking for love in all the wrong places…

The Seven Myths surrounding small community air service – including the ones that predict gloom…

US Airports Losing Six Million Enplanements Permanently – The Collapse of China-US traffic.

Plus, we’ll be supercharging the Boyd-Swelbar Unvarnished video program.

Click here to check out the Aviation Unscripted library… diving into issues that are off-limits to dare question. But not to us.  If you want to subscribe to our Touch & Go, just send us an email.

Have a great holiday, and let’s remember the reasons we celebrate it.

______________________________

Monday Insight, May 23, 2022

Update! Delaware Still Isolated From The Globe!

Never has the loss of two weekly flights to Orlando caused more media tail-chasing.

It makes great headlines…

“Delaware The Only State Without Air Service!” or, another teaser, “Going to Delaware? You Can’t Fly There, Anymore.”

‘Course the headlines mislead the public by ignoring the fact that Philadelphia International is – and always has been – @ 30 minutes or less from Wilmington and delivers a couple hundred daily departures.

Another reason some sectors of the media simply cannot be trusted for facts.
____________

Coming – Out Migrations of Business From West Coast –

Small Communities Get Ready

Seen the exciting news?

There’s a proposal in the California legislature to reset the work week to 32 hours, down from 40, but retaining 40 hours of pay. Progressive employers, according to the cognoscenti in power, should be thrilled.

See, it’ll allow working people to spend more time with their families, the politicians assure us. More leisure opportunities. Less stress. Working for a living is, well, so yesterday. Working families will just love it.

Not to mention they now may have the potential for a second job to assist in paying the state’s exorbitant taxes, stratospheric gas prices, and other parts of the new California dream.

Plus, there are other fun lifestyle factors. In California, petty theft, shoplifting, and pilfering stores is not felt to really be a crime, as long as it’s under about $900 bucks – per heist. So, drop into that Target store and pick out stuff you need or can fence.

Even if this dimbulb labor legislation ends up dead, the picture is clear: California is a place where nobody awake and sober would want to start or expand a business. And – important to today’s subject – California is a place a lot of businesses – including aviation-related companies – are likely looking to get away from. Oregon and Washington State are not far behind.

Bank On It: Lots of Aviation-Related Companies Want Out. Today, the emergence of electronic communication has leveled a lot of the playing field for rural America in attracting new business investment. And small community airports can be a huge part of that trend – with or without local scheduled airline service.

Join Us For A Nine-Minute Exploration. We’ve covered some of the conceptual issues in the latest Aviation Unscripted video. It points out that small communities need to rethink the economic applications of their local airport.

Log on to take a look. Rural airports need to move their Master Plans and economic thinking beyond scheduled air service – much of which is invariably getting out of reach.

While you’re on line, hit the green button at the top and subscribe to Aviation Unscripted. That way you’ll get notified when a new video is posted.

It has perspectives that go beyond consensus thinking.

It’s part of our almost four decades of forecasting expertise.
_____________________

Ominous News For China – Great News For Alabama

The economic realities we refer to above are global, too. When the going gets tough, business move to where it’s less so.

It was announced last week that the unelected criminals running China have shut down Tianjin, a city of 14 million, in their barbaric “zero Covid” policy.

This means – in some cases literally – citizens are locked-up in their own homes, with limited access or egress for food or to go to work. (In a sidebar, anybody remember how two years ago the major US networks parroted the WHO line about how great the CCP running China had smothered the Covid epidemic?)

It’s noted that Airbus has a major aircraft factory at Tianjin, producing A320s and doing finishing work on A350s. It is uncertain how the shut-down may affect Airbus, but it’s a leadpipe cinch that they and other foreign companies are looking hard at the total China picture. It’s increasingly not a place to do business.

It’s also noted that two weeks ago, Airbus announced a near-doubling of its A320/321/220 manufacturing facilities in Mobile. It may be coincidental, but the point is clear.

With the decline in the importance and the viability of the Chinese economy, this is a situation not lost on a lot of companies. The USA is a better place to do business.

Bottom Line:

The Jury is in. As A Business Site, Mobile beats Tianjin. And this is just the start. whether it’s from Tianjin or from Southern California, there are reshoring opportunities – even for rural America.

More information on how we can help craft a future business overview program for your airport – just click here.

Monday Insight – May 23, 2022

Update! Delaware Still Isolated From The Globe!

Never has the loss of two weekly flights to Orlando caused more media tail-chasing.

It makes great headlines…

“Delaware The Only State Without Air Service!” or, another teaser, “Going to Delaware? You Can’t Fly There, Anymore.”

‘Course the headlines mislead the public by ignoring the fact that Philadelphia International is – and always has been – @ 30 minutes or less from Wilmington and delivers a couple hundred daily departures.

Another reason some sectors of the media simply cannot be trusted for facts.
____________

Coming – Out Migrations of Business From West Coast –

Small Communities Get Ready

Seen the exciting news?

There’s a proposal in the California legislature to reset the work week to 32 hours, down from 40, but retaining 40 hours of pay. Progressive employers, according to the cognoscenti in power, should be thrilled.

See, it’ll allow working people to spend more time with their families, the politicians assure us. More leisure opportunities. Less stress. Working for a living is, well, so yesterday. Working families will just love it.

Not to mention they now may have the potential for a second job to assist in paying the state’s exorbitant taxes, stratospheric gas prices, and other parts of the new California dream.

Plus, there are other fun lifestyle factors. In California, petty theft, shoplifting, and pilfering stores is not felt to really be a crime, as long as it’s under about $900 bucks – per heist. So, drop into that Target store and pick out stuff you need or can fence.

Even if this dimbulb labor legislation ends up dead, the picture is clear: California is a place where nobody awake and sober would want to start or expand a business. And – important to today’s subject – California is a place a lot of businesses – including aviation-related companies – are likely looking to get away from. Oregon and Washington State are not far behind.

Bank On It: Lots of Aviation-Related Companies Want Out. Today, the emergence of electronic communication has leveled a lot of the playing field for rural America in attracting new business investment. And small community airports can be a huge part of that trend – with or without local scheduled airline service.

Join Us For A Nine-Minute Exploration. We’ve covered some of the conceptual issues in the latest Aviation Unscripted video. It points out that small communities need to rethink the economic applications of their local airport.

Log on to take a look. Rural airports need to move their Master Plans and economic thinking beyond scheduled air service – much of which is invariably getting out of reach.

While you’re on line, hit the green button at the top and subscribe to Aviation Unscripted. That way you’ll get notified when a new video is posted.

It has perspectives that go beyond consensus thinking.

It’s part of our almost four decades of forecasting expertise.
_____________________

Ominous News For China – Great News For Alabama

The economic realities we refer to above are global, too. When the going gets tough, business move to where it’s less so.

It was announced last week that the unelected criminals running China have shut down Tianjin, a city of 14 million, in their barbaric “zero Covid” policy.

This means – in some cases literally – citizens are locked-up in their own homes, with limited access or egress for food or to go to work. (In a sidebar, anybody remember how two years ago the major US networks parroted the WHO line about how great the CCP running China had smothered the Covid epidemic?)

It’s noted that Airbus has a major aircraft factory at Tianjin, producing A320s and doing finishing work on A350s. It is uncertain how the shut-down may affect Airbus, but it’s a leadpipe cinch that they and other foreign companies are looking hard at the total China picture. It’s increasingly not a place to do business.

It’s also noted that two weeks ago, Airbus announced a near-doubling of its A320/321/220 manufacturing facilities in Mobile. It may be coincidental, but the point is clear.

With the decline in the importance and the viability of the Chinese economy, this is a situation not lost on a lot of companies. The USA is a better place to do business.

Bottom Line:

The Jury is in. As A Business Site, Mobile beats Tianjin. And this is just the start. whether it’s from Tianjin or from Southern California, there are reshoring opportunities – even for rural America.

More information on how we can help craft a future business overview program for your airport – just click here.

___________________

Monday Insight – May 16, 2022

Let’s Stop The Charade…

Passenger Traffic Growth Will Hit A Brick Wall In 4Q 4022

Watch For A Media 180 By End of May…

The Airports:USA® forecasts have indicated for the past four months that the supposed boom in air traffic is a temporary bubble. Naturally, most other sources just parroted lots of sunshine.

Here’s the situation:

  • Inflation is up officially by 8% – which in Washington-speak means a lot more, like, say 10%.
  • Consumer confidence is at a new low. That means spend confidence is at a new low.
  • The former head of a major investment firm warned that the economy his heading into recession.
  • Fueling the family car now entails $5 a gallon. Diesel – on which we depend much of our logistics – is over $6 in many regions.
  • Despite this, The occupants of the White House are doing all they can to constrict oil production. And actually intending to export more, too.
  • The price of jet-A is on a near vertical trajectory – and there are no indications of any potential for a major price pull-back.
  • Air fares are heading up.
  • One source has reported a 17% decline in April air bookings v March.
  • Global air cargo has reportedly now declined back below 2019 levels. The China CCP-Covid mess is likely part of this.

There are no – zip – indicators that are positive. Yet we still see rosy headlines about crowded airports and a boom in passenger traffic. The media is totally clueless.

The New 2022 Projection. Our Airports:USA® forecasts indicate a plunge in 2022 enplanements from @890 million earlier this year to as low as 822 million – nearly a 10% drop from what was expected. In context, this will still be above 2021, but the momentum is gone, and 2023 may be a real surprise.

Point: all of the factors that support robust air traffic demand are heading down, big time.

Prediction: Now that completely obvious, we can expect new “predictions” of falling enplanement growth rates to go into high gear by the end of May.

More Information on Expected Fall Out… We covered some additional detail on what airports can expect in last week’s Touch & Go™ client newsflash.

If you want to be put on our T&G distribution list, just click here and request.

______________

Fleet News

Undelivered 787s Still Parked. It’s been reported that the FAA last week declared paperwork submitted by Boeing to get undelivered 787s in the sky as being “unsatisfactory.” For some carriers, this may be less of a hit than it may appear, particularly if long-haul international markets are hit by the downturn.

Shopping For Airliners? Not A Lot of Options – The Only Games In Town. Not much noticed has been the unilateral cancellation by Airbus of an order for A320neos from Qatar. The background of the cancellation is not the news item.

It’s Qatar’s legal response. The have claimed in court that the Airbus cancellation would cause enormous harm to the airline, because there isn’t a viable alternative for the airline to get planes, due to Boeing backlogs. Therefore, they asked the court to force Airbus to sell them A320s.

The court refused.

Chinese Airliners To The Rescue? Needless to say, some in the financial world will claim this is an opening for Chinese manufacturers. It sure would be, if only the Chinese had anything vaguely valuable.

We covered this in an Aviation Unscripted video… take a look. It goes into how “analysts” making these observations are off in the woods. Click here to take a look. The C919 , the ARJ-21, and the CR929 are enormous wastes of precious metal.

Embraer Turboprop. The Brazilian manufacturer is to make a decision on going forward with a 50-70 seat turboprop airliner. There is a strong global market for a next generation airliner of this category, only just not in the USA.

Boyd Group International has accomplished forecasts for clients in this sector. There are three regions where sales potential is near zero. One is the USA, where the marketplace has seen both ATR-42/72s and Q-400s retired for market demand reasons. Another is China, which has its own indigenous and embarrassing MA-700 (ATR clone) program. The final one is the EU, which is anti-anything-that-flies.

The rest of the world has potential demand, but it will be regional – highly so.

____________

 

Monday Insight – May 9, 2022

Batteries Not Included?

Disclaimer. Gotta be careful with what we say, apparently, now that there’s an official TSA Disinformation Department monitoring folks who may stray from official dogma.

Like the dogma on battery-powered propulsion. The debate is settled. The future is decided. Orwell is in full control of the information chain.

Asking Questions Is An Environmental Responsibility. Let’s start with some clarity. This week’s Insight is not an attack on alternative sources of energy. It is not an attack on electric power as a source.

It is, however, an open set of questions on the willy-nilly and environmentally-damaging assumptions that the only metric is whether there’s CO2 coming out of a tailpipe.

But right now, the debate is settled. Officially.

No material arguments to the contrary will be tolerated. We all know that electric power is the new and environmentally-accepted dogma in regard to the future of motive power. That’s not to be questioned. Before long, any suggestion to the contrary may well be considered as an attack on something trendily called “environmental justice.”

Whether This Emperor Is Buck Naked Or Not, It’s A Verboten Question.  Regardless of the official din, in regard to addressing hard questions regarding electric aircraft, the silence is deafening.

But it makes no difference – the rush to electric aircraft is on. It’s decided. It’s official policy. Any criticism may be subject to review by the Disinformation department – either the actual one in Washington, or just public opinion shaped by media that doesn’t ask improper questions, either.

Hard Discussion Is Not In Evidence. It’s not germane that the specific energy supply chain for battery power is uncertain and insecure. The  severe environmental impacts in getting that “clean” battery-driven airplane, or automobile, or lawnmower, or whatever, into operation, they are to be back-burnered in the forum of open discussion.

Hundreds Of Electric Airliners By 2030? Nevertheless, carriers around the world, including in the USA, are proudly trumpeting big orders for on-the-drawing-board battery-powered flying machines.

These companies say this shows their full commitment to the environment and the future of the planet.

That is true, actually. But only in the middle part of the battery/electric equipment life span – when the car is cleanly zooming down the New York Thruway, or the expected tsunami of small electric air taxis are taking 3-4 people across the Chicago metro area, avoiding highway congestion.

But what takes place to get these machines to that stage, and what needs to be addressed when the battery packs go deader than the Energizer Bunny in hunting season, well… diving into that may just smack at the edges of being subject to investigation by the Disinformation Department. It could be socially-divisive.

Not To Worry… Electric Power Will Deliver New Transportation Systems!  Aside from the (correct) assertions that these aircraft will not emit exhaust pollution when in actual operation, there are rosy predictions (wildly speculative) that there will be a whole new transportation sector created as a result.

It’s commonly called “advanced air mobility” or “urban air mobility” and it forecasts lots of small eVTOL aircraft carrying goods and people across relatively short distances.

Please, do not ask too many questions, as the science of these wonders and the applications of same are already firmly decided. Don’t ask about things like the ground facilities – and consumer access and egress to same – that will be the operational locations. Oops, don’t ask about things like ATC to control these things.

These will all be addressed. Somehow, by-and-by. Don’t question.

What? The Current Battery Supply Chain Creates Environmental Damage? No Way. And, at risk of being burned at the stake of public opinion, do not ask any hard questions of the challenges to the environment relating to production, transport, safety and eventual recycling of the batteries making possible pollution-free air taxi service from Tarrytown to Manhattan, assuming there will be such a consumer need in the first place.

This is not about whether an electric motor emits more or less CO2 than other forms of powerplants. It’s about simply looking at the entire battery life-chain, including before and beyond the tailpipe.

The Challenges: Lack of Minerals. Lack of Clear Supply-Chain Forecasts. The truth is that the US economy is betting the farm on electric power, with nearly zip concern that – as it stands today and in the foreseeable future – it will place the USA at the mercy of foreign energy suppliers.

Then there’s nearly zip concern about the changes in transportation safety infrastructure needed. No concern regarding the clear indications that the main components in batteries – lithium and cobalt – very clearly have inconvenient supply and access concerns, not to mention and nasty environmental and social issues.

The Media: Lotsa Sunshine Stories. When researching this subject, what too often comes to the fore are sunshine articles telling us not to worry. It’s the dogma. Heck, as far as mineral supply goes, it’s a no-brainer.

Like, it’s been reported that a mother lode of lithium crystals has been discovered in Maine. It’s estimated at the equivalent of 11 million tons of processed lithium. But from other sources, we find that between now and 2030, there will be almost 13 million tons of lithium used up. Right? Wrong? Reliable? Bogus? The sources are from all directions.

There are huge potential lithium sources in the USA and Australia. The question is whether they can be accessed without making more of mess of the environment than the fossil fuels they are intended to supplant. In most cases, it’s one very messy process getting lithium out of the ground and into a battery.

The there’s cobalt, which is primarily from near-slave mines in Africa. And how ‘bout China, Russia and Cuba… they control over 80% of the mines that deliver cobalt. No supply line security issue there, right?

Recycling… Don’t Worry. Yet. The other 800-pound environmental gorilla is the discussion of what to do with run-out batteries. Lithium is highly toxic, and current technology for re-cycling is based a lot on manual labor and lack of any really strong post-use profit potential for companies doing the work.

Then, there is the staggering potential for gigantic environmental damage due to improper disposition of these things. Don’t kid yourself, chop-shops in China or elsewhere could well be a part of this process, and the environmental damage would be catastrophic. Point of truth: we don’t have the systems or the controls to address the safe recycling of current-technology batteries.

In a very real sense, this alone should be a show-stopper for battery power until such global systems are in place.

Again, when it comes to anybody providing hard answers beyond “progress is being made” there isn’t a whole lot of discussion. Yup, there is new battery technology being developed… but it’s not here, and no guarantees of when or even if.

In the meantime, thousands of machines across the globe will be generating used-up lithium-ion batteries with insufficient planning or systems to handle the threat of massing post-use pollution.

Buying Electric Airliners Comes With New Responsibilities

Again, this Insight is aimed as asking questions. Honest questions that might be disruptive.

The bottom line is that corporations who are ordering battery-powered aircraft have the moral responsibility to be fully and aggressively involved in resolving issues such as discussed here.

They are responsible not only for the pollution created (or not created) in the operation of these machines, but for the entire environmental chain of battery power in these aircraft, from the slave-mines in the Congo to the dangers of lack of controls on recycling across the globe.

Tough Questions For Electric Airliner Customers…

What is your stance and your plan to participate in programs to assure that production of battery minerals will be accomplished in accordance to basic human rights and safety? Just saying “it’s being done” is a dodge. Right now, the cost of batteries is subsidized by child labor – and worse.

What is your plan in regard to assuring that the run-out batteries from those whiz-bang new AAM aircraft are recycled responsibly? The potential damage to the environment in this part of the battery life-chain is likely more that the jet-A being burned today. A lot more.

These are really two constellation questions – with lots of secondary issues.

Aviation Unscripted Videos…Take Look… Point: Just buying electric cars or airplanes is not “saving the planet.” We’ve published two Aviation Unscripted videos in the last year.

Click here to take a look… we’re just asking questions.

Got input or answers… hit the contact button, and let’s talk.

It’s silence that’s the driver of Disinformation. It’s fear of asking questions or standing out from the crowd that’s disinformation.

_________________________

 

 

 

 

 

 

 

 

Monday Insight – May 2, 2022

Fourth Quarter Projected Air Transport Demand Forecast

The latest Airports:USA® projections are not comforting. The rebound in post CCP-pandemic traffic is slowing.

  • Percent of 2019 Capacity: Declines to under 80% by Oct-Nov, down from over 90% earlier in the year.
  • Total US Airport Enplanements: @820 million, down from earlier estimates of over 890 million. Getting back to 2019 numbers not in the cards until @2025 – and that’s based on organic demand that has much less international traffic, and a slice of former business traffic gone forever.
  • Airline Expansion Strategies: Reduced or actually throttled down. We’re seeing this already.
  • Fleet Strategies: The retirement of 50-seaters will accelerate along with higher fuel prices. Airports that have large 50-seat overhaul/maintenance operations need to continue to plan to move into other aircraft or have nice empty hangars in 2023-2024.

As we noted to our clients and friends in last week’s Touch & Go™ news flash, there seems to be some confusion about where air traffic demand is headed. The economic indicators are pretty clear.

Subscribe For Weekly Insights Not Covered – Or Dare Not Covered. For folks who are not on our T&G distribution list, just click here and request to be added. It’s our end-of-week review of aviation issues – we question the consensus and look over the horizon.

______________

The EAS Program. Mr. Roarke And Tattoo Would Be Proud.

“Da Plane! Da Plane!”

Ring that bell. Pass out the purple cool aide. Get the staff to do a native dance. It’s EAS time across the nation. New flights are coming to replace Skywest/United Express!

“Smiles, everyone!”

This is Fantasy EAS Island. An escape from reality, where dreams are tolerated even it they make no economic sense.

This past week, two prominent politicians urged the occupant in the front office of the DOT to promptly find an EAS replacement at Pueblo for now-departing United/SkyWest. The need is paramount. The effects on huge parts of the population are obvious.

Fantasy knows no bounds. Just say it’s so, and the facts don’t matter. It’s like being on a deserted island – deserted of reality and accuracy.

The situation is dire. Many, many people may be adversely affected. Read the missives:

Senator Michael Bennett, (D-CO) “The Pueblo Memorial Airport serves the South and Southeastern regions of Colorado and benefits greatly from EAS. Reliable and accessible air service, to and from Pueblo Memorial Airport, is necessary for Pueblo and the surrounding communities.”

From The Mayor of Pueblo: “The Pueblo Memorial Airport is a convenient and necessary service to our citizens here in Pueblo …  Many people use Pueblo as their connection to Denver and beyond …:”

“Da Plane! Da Plane!”

Yessir… facts and reality and accuracy are not necessary. This is indeed Fantasy EAS Island. Politicians like these can say just about anything, and the parrots in the local, national and aviation media say nothing.

But, Returning To The Nasty World Of Facts… Not to be party-poopers, but please note the underlined sections.

Lucky, it’s in the Fantasy Island of politics, where hyperbole and completely bogus babbling are as common as when doing a deal at Fast Eddie’s Backstreet Used Car Emporium. The difference is that in politics,  intellectual barn droppings like these are not legally actionable. If these guys were actually trying to peddle an ’06 Buick with hype claims like these, they’d be wearing orange jumpsuits.

Fact: The truth is that less than 12 people a day “benefit greatly” getting on each of Pueblo’s two 50-seat UAX flights that connect mostly just to United at its Demver hub. This, apparently, is the new math definition of “many people” in a county of over 168,000.

Once, It Was The Southwest Effect. Here, It’s The Starbucks Effect. Think about it. There are probably more people going through the local Starbucks in a given 60-minute period  than the 11+ folks climbing onto a PUB flight.

‘Cept at Starbucks, consumers are paying @ $4 each for that double-decaf, lactose-free latte, with “room” for a hit of soy milk. Out at the airport, the taxpayers are shelling out over 50 times that amount per passenger for those board two daily 50-seat round trips to connect the lucky dozen to other flights at Denver.

Put that in context with the political babble that surrounds the EAS program. Pepto-Bosmol, please.

Fact: Pueblo really has excellent air access…their consumers know it, but Hissoner the Mayor and the august Senator are clueless. See, it’s 42 minutes away at Colorado Springs Airport, which has over 30 daily departures on five airlines, accessing nine airlines’ connecting hubsites. Most people in the LA basin are farther from LAX in terms of time. A lot if travelers in Nassau County using LGA, ditto. That means COS is the de facto airport for PUB, regardless of expensive and irresponsible civic hubris.

No need for further discussion.

Order The Study. If you haven’t done so already, we’d suggest ordering the recent study by Swelbar-Zhong and Boyd Group International, which talks candidly and non-politically about the outdated, obsolete and ineffective Essential Air Service program. Click here.

Pueblo and the inaccurate comments above are clear indications of how badly change is needed.

Monday Insight – April 25, 2020

Electric Airliners… When The CO2 Cheering Is Over,

How ‘Bout The Unintended Operational & Moral Issues?

Warning. We are going to the edge on this Insight… and maybe a couple of centimeters beyond. It can be a bit touchy challenging not only trendy thinking, but industries that represent billions of dollars in new investment, let alone a swooning me-too media.

But these points are valid and need to be addressed – NOW – by the US airline industry. Let’s dig…
________________

The rush to electric airliners is on. Two more small airlines have joined a couple of big network carriers in making big commitments.

See, these small flying machines will emit no CO2 emissions. In addition, somehow this seems to have created expectations of a whole new set of air service sector possibilities, with skies blackened with air taxis and short-haul commuter airliners zipping between places not served today. The assumption seems to be if you toss it in the sky, people will use it, especially if it’s green.

Could be. All through the magic of battery power.

But in the roaring green din of excitement over these flying machines, the builders, the purchasers, the operators, and the airports involved have huge moral responsibilities. Responsibilities that, unfortunately, have been swept under the ethics carpet so as not to spoil the vision of “exhaust-less” air transportation.

First, These Mostly Are Not Replacing Fossil-Fueled Aircraft. As we’ve pointed out in recent Monday Insights and on our Aviation Unscripted video series, by and large there won’t be any major reduction in greenhouse gasses. That’s because in most intended applications they aren’t replacing fossil-fuel machines… just implementing new ways of using the sky to transport people.

But there is another big issue that needs to be addressed somewhere between the grand announcements of worshiping the Goddess of Green.

Let’s Have Some Answers. Clean Exhaust. But A Lot of Environmental & Social Damage To Get There. We are referring to the moral question of the power source of these lauded future aircraft.

Existing battery technology and current channels of battery production.

Sorry to pop trendy bubbles, but based on current and foreseeable technology, battery power is not “sustainable” energy. They are made with things mined out of the ground. Just as is petroleum. But it’s environmentally a lot worse.

Unlike the oil industry, the supply chains that mine and produce battery components – things like cobalt, lithium, nickel and other rare minerals – are not particularly well-regulated. Matter of fact, they are in large part 21st-century hell-holes, producing minerals at cheap costs on the backs of hapless workers and at the destruction to the very “environment” that the producers of electric machines claim they are protecting.

There’s A Supply Chain Threat – Included At No Extra Cost. For one example, 70% or more of the cobalt that goes into batteries comes from sweatshop near-slave mines in Africa, and most of them are controlled by the Chinese Communist Party. These are the folks that brought us Covid, the deadly global pandemic, cultural genocide in Xinjiang, and the crushing of democracy in Hong Kong. And the “go” in most of our batteries is dependent on these criminals.

Don’t look away, folks. Working conditions to get that cobalt out of the ground could make Sinclair Lewis come back from the Great Beyond to craft another best-seller. (Google it, if you must.)

It’s got it all  for a best selling exposé. Tragic child labor. Minuscule pay. No worker rights. Government corruption. Dangerous working conditions. People who should know better turning a blind eye. A 21st century sweat-shop system delivering low-cost cobalt for EV batteries and soon electric air taxis, whooshing people pollution-free across the New York Metro area. Wondrous convenience for the consumer – at terrible human and environmental expense to make it possible.

Then there is lithium. It takes enormous amounts of water to produce lithium. That can have an environmental impact. And then it takes a lot of fossil fuel to transport it to the place where most of the finished processing is done. You guessed it, China. Those facilities aren’t exactly Teamster shops, either. And, like cobalt, the supply chain can be choked off anytime one of the CCP Dons may find it politically expedient.

Spent Batteries May Be As Big A Problem As Spent Powerplant Uranium Rods. And after these new aircraft have flown a few years in the sky, the batteries need to be replaced. Oops, as of today there does not seem to be a clear understanding of how all these worn-out – and environmentally unfriendly – batteries are to be recycled.

This is not to state that non-polluting machinery, be it a lawn mower or a 50-seat short-haul airliner, are not positive developments. But as of today, there are no clear answers to the mess that batteries are fixin’ to dump on the environment and the supply uncertainties facing operators of such machinery. As a clear indication of just how far in la-la land this has gone, there have actually been suggestions inside the Marble Playpen (Congress & White House) that military equipment might be best converted to clean, non-polluting electric power.

If you’re Selling It or Using It, You Have The Responsibility. Worse, when it comes to the social price and human exploitation that current battery production represents, everyone in the supply and use chains of electric aircraft has the moral responsibility to address this situation openly and aggressively. Ask questions. Recognize and admit where these outrages are. Propose new approaches or new technology. For starters.

Oops. Maybe Without The Human and Environmental Subsidies, Battery Power Is Dead. But in any case, the current battery supply chain and production system is morally unacceptable. In clear fact, the system delivers product at an artificially reduced cost. It’s not beyond distant possibility that in the absence of these social outrages, battery power could be non-economic. As one warning, it was reported that the cost of lithium in the last year has skyrocketed by 900%.

Where To Go From Here. This is not to simply conclude that electric aircraft or vehicles are inherently evil in concept. Much the opposite.

But as it stands now, here’s the bare-bones responsibility of the entities involved in their design, use, applications and environmentally-safe life cycle planning:

Pursue And Achieve Advanced Battery Technology. It’s either pursue new and socially-acceptable technologies that don’t rely on the current mineral supply chains, or addressing and remediating the environmental and social problems with the current supply chain.

Address Battery-Related Safety Issues. Simply put, the handling of a fire on an electric aircraft is very different than the approaches to petro-powered machines. Training? Equipment? Facilities?

Post-Use Recycling. Let’s get beyond the excuse that used lithium-ion batteries can be applied to electrical grids. Maybe. But how much can this absorb as thousands of automobiles and hundreds of airplanes shed their clapped-out battery packs?

Research Future Operational Economics. Maybe it might be an idea to do operational feasibility forecasts based on what-if cost scenarios of electric aircraft. It’s pretty obvious that the current supply chains are riddled with factors that artificially keep production expenses down. (Like, for example, the labor conditions in mines in the Congo.)

Today’s Economics Might Not Be The Same Tomorrow.  The entire foundation of electric/battery propulsion isn’t particularly stable. A hard analysis of what the economics of electric airliners might be if these production channels were something closer to “market” rates. Another factor is doing a serious review of the social and political vulnerabilities of the current supply chain. Today, the assumptions in the sales brochures are almost all about performance, not market and economic sustainability.

Heresy! Ignore It! Yes, this is not a subject matter that might be welcome to discuss, particularly with the billions of dollars that are chasing electric machinery.

But any entity that is planning on spending tens of millions on electric aircraft, and doesn’t have clear answers to solving these issues has a very real moral problem.

To put it gently.

We covered this in our Airports Unscripted video series a couple weeks ago. We were outlining these issues and asking for answers. Which did not come, by the way.

Take 9 minutes for some insight and watch the video, if you haven’t done so. Click here to take a look.

_______________

Monday Insight – April 18, 2022

Small Community Air Service Access…

It’s An Economic Issue… Not A Pilot Issue. And It’s Not Always At The Local Aerodrome.

We are excited to issue an update to Swelbar-Zhong/Boyd Group analysis of the Essential Air Service Program, and of the pressing need for new approaches to assuring all areas of the nation are communicatively connected to the rest of the world. The thinking and the assumptions underpinning the EAS program are actually holding the nation back from this goal.

We’ll recap a couple of hard foundational facts.

Look! Up in the blue! It’s what you don’t see anymore, but were blackening the skies when the EAS program was conceived.

Beech 99s, Piper Navajos, Metro-IIIs, Embraer-110s, Embraer-120s, J-31s, J-41s, Casa-212s, CV-600s, CV-580s, Beech 1900s, D-328s, D-228s, G-ICs, – literally several hundred small airliners – aren’t there anymore.

Neither are Wings West, Precision, Air Oregon, Metro, Permian, Cochise, Midstates, Britt, Air Illinois, Big Sky, PBA, Bar Harbor, Cascade, Air-LA, Ransome, Air New Orleans, Royale, Aeromech – to name a few.

In pre-deregulation times, each of those “regional airlines” had their own route systems… operated independently… ran point-to-point, had multi-stop routings like the Nebraska “river run” – OMA-LNK-GRI-LBF-BFF-DEN, and actually carried people on aircraft like those mentioned above.

They set their own fares and schedules. There was an interline system that they could connect to at various big cities, to carriers like Continental, Northwest, Ozark, TWA, Republic, Rio, Piedmont, Ozark, Southern

This was the air transportation system which the EAS system is based on. It no longer exists. But EAS does.

Take a gander: air transportation and its role has evolved, based on advancements and complete changes in the entire communications system. No point in getting into how and why of how this evolved. It’s now reality.

This is the core fallacy of the EAS system. The nation needs federal programs that are consistent and compatible with the future. To be sure, some of that may involve financial support for certain air service situations. But it’s funding for economic development around our airport system that now should take priority.

Clarifying – We’re Just The Messenger. After the first edition of the Third Rail, we wanted to address some of the misconceptions the document seemed to generate. Actually, since the document challenged traditional DOT thinking, not to mention threatened a bunch of consultant rice bowls, push-back was not unexpected. Questioning the status quo tends to get some hackles raised.

We’re just the messenger, not advocates. We enthusiastically support airport economic development. Small airports actually have a strong set of new opportunities in the new aviation environment.

All we are pointing out is that EAS and the assumptions behind it are the equivalent of getting a garden hose to extinguish the Hindenburg. It’s an air transportation policy that is a gigantic misfire and failure. The whole EAS enchilada in its current form is an embarrassing waste of money.

Let’s Check The Calendar. Summing up, there simply is no question that while communication channels, and air transportation economics, and consumer patterns have completely evolved in the past 40 years, the EAS program is a policy relic of the 1970s, and has in many cases become an expensive support system for local civic hubris, instead of air access.

It’s Not A Pilot Shortage Issue. Another false belief: it’s just “the pilot shortage” that is causing reductions in small community air service. Were it not for that, all would be well.

That is complete hogwash.

In most cases, it’s raw economics and often the availability of alternative better consumer options. Just hoping for more pilots to come along and restore uneconomic service to small airports is nonsense. Pilot resources are a part of the economic mix, but cockpit crews can be lined up around the building and it won’t bring air service to these airports that don’t generate enough traffic to fill a stretched Ford Econoline van.

It’s Access… Not “Commercial Service.” Worse, today, small communities and their civic leaders are increasingly being sold the malarkey that “commercial service” is simply a factor like “running water” or a sewer system. The goal is to just get scheduled flights, without much concern whether they connect to anything or can even compete with existing consumer-available alternatives.  In fact, those are factors that are typically ignored – or sidetracked – in most ASD approaches.

Two Caravans A Day Is Not “Air Access.” The argument is that without commercial service at the local airport, the community is cut off from economic growth. That’s ridiculous, when the “service” might be two flights a day, with questionable connectivity, even with small jet service. And while the operators involved do a great job, it gets more outlandish when the options are a couple of single-engine Cessna 408s. The argument that such service is “better than nothing” is weak. It is essentially nothing in regard to air service access.

SkyWest/UAX Was The High Point. It’s Not Coming Back. This transition will be particularly challenging for the 29 airports where SkyWest/United Express is leaving town.

Too many communities are being convinced that just getting another carrier will do the trick. That’s a couple notches short of ethical behavior. Communities need to be informed of and understand what they are facing. The UAX service was part and parcel of the global United Airlines system. An independently-branded carrier replacement that might have T&B agreements with a couple of majors isn’t 10% of the exposure of air access that was provided by the SkyWest/UAX program.

With this update of the Third Rail Thought Paper, we’ve made the point that EAS – and by similar arguments, the SCASD program – must be completely re-structured to address consumer realities, not the 1970s. Re-direct those millions of dollars into programs to encourage business growth and next-generation aviation support.

These are not “conclusions.” They are recognition of realities that are going to continue to manifest.

For A Copy of The Third Rail Thought Paper, click here. For communities and airports that are interested in exploring how the new aviation industry may offer economic opportunities, let us at BGI or Swelbar-Zhong know.

We’re looking at the future. And we’re not concerned with political correctness.

________________

Monday Insight – April 11, 2022

Life After Air Service Development Programs

Economic Refugee Companies – The New Small Airport Opportunity

Lots of huddled aviation-related masses, yearning to be free…

The flaw in most aviation and airport forecasts is that they assume everything is a general trendline, with the drivers of growth being a simple matter of mathematical formulas applied to population and demographic metrics.

But in the next five years – write this down – there will be major economic migrations that will fundamentally change how and where America lives and works. And where aviation-related enterprises relocate to.

There are several complex sub-drivers of what we’ll be experiencing, but the bottom line is that people and commerce will shift to where quality and security of life are better. It doesn’t take a six-month study to figure this out. Businesses in some areas are being almost actually told they’re not welcome, based on dimbulb political and economic policies

Wake Up And Smell The Woke. Let’s not dance around the issue. In he last two years, what has transpired in major cities along the West Coast – and some other points across the nation – without question will affect where commerce will expand and where it will contract. It is a set of factors that will be making refugees out of a lot of aviation-related businesses in formerly strong economic regions. They will be looking to business-migrate. Airports across the country face huge opportunities.

We recently covered this in a Touch & Go™ newsletter to our clients. Make no mistake, jobs and prosperity are not going to be created in places where there is condoned petty crime, ignored and even tacitly-encouraged street violence, high taxes, civil uncertainty and deteriorating social stability.  Businesses are in the progressive cross-hairs. Chambers of Commerce and EDCs and Mayor’s Task Forces won’t change his. The basic foundations are crumbling and that means businesses are looking to emigrate to new more rational locations. And it’s a lot easier to do this in an electronic communication world.

Crime Is Only A Crime If It’s Priced Right. The poster child for this situation is seen in places in California. Shoplifting is not a big deal as long as it’s under around $900 per heist. Drop into that Brooks Brothers shop, and grab yourself something nice off the rack. Obviously, alterations aren’t free, but that Hart Shaftner & Marx 3-piece is.

Small stores are closing in downtown areas because the de facto reality is that there is no protection from crime. This warped mentality permeates the entire approach to business and commerce.

Quietly, we’re seeing the responses to this start to manifest. We’re looking at what will be electronic wagon trains moving commerce from affected cities (and, in a couple of instances, entire states.)

Business Refugees Yearning To Be Free. What this means is that there are hundreds – thousands, actually – of businesses and commercial entities in these affected areas that are candidates for out-migration. The first step is to craft plans to attract and accommodate them.

So, let’s get down to the potential this represents for small and mid-size airports across the mid-section of the nation. No, it’s not the potential for higher enplanements. Instead, it’s the economic potential. Every airport has a Master Plan. But generally, these don’t contemplate potential of attracting new businesses to and around the airport. That is where the future growth is.

Develop A Target-Specific Economic Battle Plan. The opportunity is matching the available airport facilities to targeted refugee businesses in these declining cities.

In Southern California, there are likely hundreds of aviation-related entities that would find airports and communities in Iowa, Nebraska, Ohio, Kentucky and other places far better locations to do business. Carefully identify their needs, their necessary skill sets, their required logistics, etc., and develop a plan to accommodate them.

It will take some work… identifying what the local airport has available and determining a clear target list of specific companies that can be attracted. To be sure, there is a whole lot of analysis that needs to be accomplished, but the fact is that there are clear opportunities for airports and communities that craft clear, targeted economic outreach.

The point, we would submit, is made. The opportunity is right in front of every small and mid-size airport in America.

Give BGI a call or drop us an email – we can talk about how we can assist in crafting a true Battle Plan for your airport.

This is not a drill – some large cities are policy-honking aviation businesses out of town. Opportunities are rife.

__________________________

In This Week’s Boyd+Swelbar Unvarnished…

Clear 18 minutes. Take a break and log on to the latest edition of aviation’s most incisive and iconoclastic video series…

Take a look, book mark Unvarnished, and let us know your thoughts….

_________________

Monday Insight – April 4, 2022

Enplanement Demand Watch

On Inertia For Now, But Airlines Are Taking Few Chances

Between staff shortages, fuel spikes and inflation, the US airline industry is likely once again in full metal jacket planning mode – if they ever were actually out of it from the Wuhan/CCP pandemic. These folks are not going to get blind-sided.

BGI’s Airports:USA® forecast system will be watching these planning shifts in the coming weeks. We have looked at the top 15 growth airports, 2025 v 2019, as forecast in early February, and would suggest that there are six bellwether markets to watch after Labor Day as national demand indicators.

If the economy falters in regard to discretionary income, or consumer confidence continues to go down, these are markets that may not be in the top 15 next year.

There are no past experiences that combined higher fuel costs, national inflation and staffing shortages as change factors in an air transportation industry that had been literally booming. Plus, there is uncertainty regarding the pecking order of leisure travel in the discretionary-spend pecking order. It may be less vulnerable than other options

____________

Keeping Rural America Communication-Connected

“Commercial Air Service” In Some Cases Isn’t A Part of The Future

The latest Aviation Unscripted video does a final deep dive into the festering issue of small communities being confused between “commercial service” and “air service access.”

The SkyWest/UAX deletion of service at 29 EAS points was just the latest in almost 50 small community hub feed markets being yanked by network carrier systems. The proximate cause is attributed to a pilot shortage, but the truth is there are far more fundamental drivers that are being ignored, to the detriment of the communities involved.

Economic planning demands understanding economics in the first place. For communities, airports, aviation planners, rural economists and investment firms, we’d suggest investing ten minutes and logging on to the latest Aviation Unscripted video. No punches pulled, and we have three decades of planning experience and respect from the airline industry to back us up.

The short ten-minute presentation does indeed trample on a lot of accepted and obsolete planning norms. But one can only wonder how much money has been spent – and now more will be spent – on projects to regain air service that is fundamentally impossible to recapture.

Click here to take a look. And if you’re interested in weekly updates on issues other consultants hide from, join us as a subscriber to get notified of new Unscripteds.

Planning For The Future… Join us! We’d also point out that Boyd Group International and its colleague partners are ready to assist communities in ascertaining future direction for their local and regional airport assets. This certainly includes analysis of air service access options, and when indicated, development of aggressive appropriate programs.

But we also review the current and future role of each airport in the context of the future, and assist in developing wider exploration of the economic potential in the national and global aviation industry.

Give us a call or drop us an e-mail and let’s talk.

________________

Boyd+Swelbar Unvarnished This Thursday…

The gloves are off. The formalities side-stepped… with all that’s going on, this week’s Boyd+Swelbar Unvarnished video may cross a whole lot of red lines. Take a 20-minute break this Thursday and cross them with us.

The program is free-form and uncharted. Some of the issues we are considering to dive into…

Airports:USA Enplanement Forecast Updates. The real unknown is after Labor Day. Most summer travel is in the farebox already. We’ll touch on where traffic may expand, and where it’s most vulnerable to higher fuel costs, the pilot shortage, and inflation. Don’t miss this.

Small Jets: Is There A Life After Network Carriers? We’ll be diving into the situation regarding the over 700 – yes, 700+ – fifty seat jets now “stored” and out of service. To be sure, most of these are pretty much run-out as well as stripped for parts when they reach the sunny climes of the desert. But there could be alternative applications for some of these machines.

The “aha!” model is of interest. Just not for a couple hundred airplanes. From historical and embarrassing experience, ExpressJet – parent of aha! – tried independent point-to-point service and found it a generator of red ink. Then there’s the moribund “all-inclusive” upscale vacation sector that isn’t going anywhere, so that’s not an option. But business/executive applications are growing. There may be other applications that we mere mortals have missed. On-demand logistics? More JetX type applications?

Latest Updates On Emerging Airline Strategies. Wow! New international service! Or, maybe not. On one hand, fun expansion announcements, and later some daunting pull-down announcements. Some of the “emergency” CCP-Covid survival markets, like United’s leisure point-to-point routes, getting cut. The Breeze model, right when JetBlue is yanking similar long-haul nonstops?

Aviation People of The Week. We’ll be naming some names regarding events over the past several weeks, along with some prognostications for airline strategies, consumer shifts, and what we see in the post-Labor Day demand picture.

Take out 20 minutes this Thursday… it will be well worth your time. We tackle important, critical aviation issues other consultants scurry away from.

Log in here to our channel and take a look. We are gratified at the viewer levels, not only on Rumble.com but on all access points.

(We are primarily on Rumble.com v YouTube for the reason that as we explore and discuss what may be sensitive issues, we do not want to be censored in any way. YouTube will allow near-terrorists free discussion, but arbitrarily shut down posts that they unilaterally feel are politically incorrect. We will be touching on a range of issues that YouTube might feel so.)