Turbulence on the Tarmac: Airbus’s High-Stakes Push to Ground Tariffs

When Airbus CEO Guillaume Faury called on April 30 for a revival of the 1979 WTO-brokered zero-tariff pact covering civil aerospace goods, he was warning of “only losers” if the transatlantic tariff skirmish drags on. That landmark agreement, signed by 33 nations, had for decades allowed aircraft and parts to cross the Atlantic unfettered by customs duties—fueling the complex, interwoven supply chains that both Airbus and Boeing rely on.

Yet under the Trump administration, the U.S. imposed duties of up to 10% on large civil aircraft and parts, citing unfair subsidies. Europe retaliated with levies on American goods. The result? An aerospace cold war that threatens to clip the wings of growth on both sides.

Quarter One Touchdown: Strong Results Despite Headwinds

Even as tariffs loomed, Airbus’s Q1 performance bucked expectations. Underlying operating profit rose 8% to €624 million, and revenues climbed 6% to €13.54 billion, beating analyst forecasts of €602 million and €12.95 billion respectively. Defence division strength provided a vital tailwind, offsetting early production snags in civilian jets.

However, the manufacturer was forced to hold back 17 aircraft in Q1 due to engine delivery delays from CFM International—a joint GE-Safran venture. Faury warned that undelivered engines would continue to pile up in Q2 before supply normalizes by summer.

Engine Icing: Supply-Chain Congestion and Spirit AeroSystems

The engine logjam underscores how fragile just-in-time aerospace logistics have become. CFM, the world’s largest engine maker by volume, had front-loaded supplies to meet 2024 targets—but that cushion has run thin. Meanwhile, Airbus’s recent takeover of key Spirit AeroSystems sites—responsible for fuselage and wing assemblies—adds integration challenges that could ripple through A320 and A350 production ramps.

Calling Mayday: Why Duty-Free Matters

Airbus argues that restoring the 1979 duty-free framework is no mere nostalgia trip. “The complete industry has developed around that concept with a lot of back and forth across the Atlantic,” Faury said. Free trade in aircraft and parts isn’t just a cost-saver—it underpins global competitiveness, innovation sharing, and fleet modernization for airlines on both continents.

U.S. airlines aren’t thrilled about absorbing extra fees. Delta’s CEO Ed Bastian has even floated deferring deliveries rather than paying tariffs. Airbus itself has ruled out eating the levy, insisting carriers must shoulder it—a stance that ramps up pressure on U.S. policymakers.

Cockpit Diplomacy: Industry Heavyweights Take to the Hill

This isn’t just Airbus lobbying in isolation. A coalition including Boeing and GE Aerospace has pressed Congress and the White House to lean into the old WTO treaty rather than new levies. In private letters, CEOs warned that sustained tariffs would erode U.S. jobs in parts manufacturing—ironically the very segment the duties aim to protect.

Descent or Climb: What’s Next for Airlines and OEMs?

Airbus reaffirmed its 2025 targets—820 jet deliveries (up 7%) and roughly €7 billion in adjusted EBIT—assuming the trade war doesn’t escalate further. But with engine backlogs and integration of Spirit assets still unfolding, much hinges on supply-chain recovery and, crucially, a political breakthrough on tariffs.

If Brussels and Washington can’t negotiate a cease-fire, airlines could face delayed fleets, higher costs, and deferred network plans. Suppliers on both sides risk production slowdowns. And passengers? Potentially pricier tickets as carriers pass on expenses.

Final Approach: Charting a Course for Free Skies

Airbus’s dramatic plea is more than corporate brinkmanship—it’s a rallying cry for an industry built on open borders. Reviving the 1979 duty-free regime would instantly defuse a major cost pressure point and signal confidence in transatlantic cooperation. For now, the aerospace world watches Washington, DC—not just the skies—for a resolution.

Will politicians clear the runway for tariff-free trade again? Or will the aerospace sector remain stuck in holding patterns, taxing growth and innovation? One thing’s certain: in this high-stakes game, every stakeholder—from engine makers to passengers—has a vested interest in smooth, duty-free skies.

With Inputs from Reuters

Air India recently revealed that over half of its fleet now boasts freshly refurbished interiors, part of a sweeping US$400 million retrofit initiative. But beyond new seats and carpets lies a story of strategic reinvention, supply-chain gymnastics, and a quest to reclaim India’s place on the global aviation stage. Buckle up—here’s why this matters for every traveler and industry watcher.

A Retrofit Revolution Takes Flight

Since September 2024, Air India has been hard at work reimagining its legacy aircraft. To date, 106 of 198 planes—more than 50%—have rolled out of hangars sporting:

• Three-class cabins: Business, India’s only Premium Economy, and an enhanced Economy section
• Brand-new fixtures: Seats, carpets, curtains, lavatories, and the striking new Tata-inspired livery
• Consistent service promise: A uniform experience whether you fly Mumbai–Delhi or Mumbai–London.

This isn’t cosmetic tinkering: it’s the centerpiece of a five-year transformation strategy designed to modernize every inch of the airline inherited by Tata Group in 2022.

From Narrow-Bodies to Dreamliners: Phased Progress

Air India’s retrofit breaks down into two key workstreams:

In total, 67 aircraft are being sequentially upgraded in this phase—27 A320neos, 27 Dreamliners, and 13 Boeing 777s—at a pace of roughly 3–4 narrow-body refits per month and parallel wide-body workstreams.

Supply-Chain Headwinds: The Hidden Hurdle

If you’ve wondered why it takes years to re-seat a plane, Air India’s team will tell you: global shortages of engines, seats, and critical components are constraining all carriers, not just in India. CEO Campbell Wilson told Skift India Forum attendees that while the retrofit is “still slower than we would have liked,” the airline is “pulling these aircraft through a heavy refresh programme” to stay on schedule.

“Reality is … it’s going to remain a supply-constrained market worldwide for another 4–5 years.”

—Campbell Wilson, Air India CEO

Those words explain why every refurbished jet is a small victory—each one means overcoming logistical puzzles from Europe to the U.S. to East Asia.

Playing Chess with Capacity

With new aircraft deliveries trickling in more slowly than planned, Air India is forced to be strategic—some might say ruthless—about where its freshly minted cabins fly. Routes with premium demand get the newest interiors first; older-configured leased jets stay on less profitable sectors until they too can be refitted.

For travelers, this means a smarter match of cabin fit to route: expect the three-class A320neo on high-traffic business corridors, while legacy interiors may linger on lower-yield sectors until their turn in the hangar arrives.

Beyond Air India: A Unified Tata Vision

The retrofit extends to the former Vistara fleet too, with repainting and cabin upgrades set to wrap up in the next 18 months. Once complete, every Tata-owned jet will share the same seats, service ethos, and unmistakable red-and-silver livery—an alignment aimed at simplifying operations and strengthening brand recall.

Meanwhile, on the horizon: the arrival of 470 newly ordered Airbus and Boeing aircraft (including A350s, A320neos, 737 MAX, 787-9s, and 777-9s) beginning in late 2023 and stretching into 2027 – 2028. Each new delivery will complement the retrofit, ensuring that legacy and next-gen jets present a seamless passenger experience.

What This Means for You

• Consistency: No more guessing which cabin you’ll get—every flight will feel familiar.
• Comfort: Wider seats in Premium Economy, mood-lighting in Business, and modern lavatories in Economy.
• Reliability: Refreshed cabins often coincide with deep maintenance checks, boosting on-time performance.

Whether you’re flying for business or leisure, the cabin you step into this year will look—and feel—drastically different from Air India of the past.

Looking Ahead

By mid-2027, every Boeing 777 and 787 legacy jet will have completed its makeover. The final A320neo emerges from its hangar by Q3 2025, and Vistara’s cabins will shine in new colors by late 2026. After that, the spotlight shifts to integrating brand-new aircraft, upgrading ground services, and leveraging technology to match cabin comfort with digital convenience.

So next time you book an Air India ticket, ask yourself: will I be among the first to try the new Premium Economy? Or will I enjoy a fully modernized Dreamliner on my overseas leg? Either way, you’re witnessing one of aviation’s boldest mid-air transformations—and it’s well worth watching.

In an industry-first, Saudi Arabia’s national carrier, Saudia, has partnered with iconic haute couture house ELIE SAAB to launch an exclusive collection of inflight amenity kits that redefine what it means to travel in style. From red carpets to airport runways, this collaboration marks ELIE SAAB’s debut in the aviation world—and it’s taking luxury to new heights.

Couture Above the Clouds

For over four decades, ELIE SAAB has been synonymous with elegance, sophistication, and timeless design. From royals to Hollywood stars, the label’s glamorous aesthetic has long captivated the world of high fashion. Now, that same level of luxury has landed aboard Saudia’s First Class and Business Class cabins, offering premium guests a five-star experience well before arrival.

“This partnership represents the essence of Saudia’s transformation,” said Rossen Dimitrov, Chief Guest Experience Officer at Saudia. “Together, we are creating something truly extraordinary—taking the artistry and elegance of ELIE SAAB to the world while bringing the world to Saudi Arabia.”

What’s in the Bag? The Ultimate Inflight Indulgence

Saudia's amenity kits go beyond travel basics—they’re functional fashion statements. Each kit has been meticulously designed to reflect the ELIE SAAB ethos of elegance fused with modern-day utility. Here's a peek inside this bespoke collection:

First Class – Designed for the Elite

Female Guests:

• Outbound Flights: A quilted faux leather vanity case with the signature ELIE SAAB motif.
• Inbound Flights: A jewelry box-inspired design—sleek, sophisticated, and ready to repurpose post-flight.

Male Guests:

• Luxurious voyager cases crafted in premium pebble grain faux leather, complete with a side handle and detachable strap for versatile use.

Business Class – Style on Both Legs of the Journey

• Distinct designs for men and women on both outbound and inbound flights.
• Each kit exudes understated glamour, ensuring every traveler feels the ELIE SAAB touch, regardless of the route.

Skincare at 40,000 Feet

Each amenity kit contains a suite of exclusive ELIE SAAB skincare products:

• Revitalizing Face Mist
• Hand and Body Lotion
• ELIE SAAB Eau de Toilette for a signature scent that lingers with sophistication

It’s not just about staying refreshed; it’s about arriving radiant.

Luxury with a Conscience

In keeping with global sustainability goals, this collaboration also prioritizes the planet:

• Toothbrushes, socks, and eye masks made from recycled materials
• FSC-certified paper for cosmetic and dental kit packaging

This partnership proves you don’t have to choose between style and sustainability—you can have both, wrapped in couture.

Behind the Scenes: A Trio of Innovation

This pioneering inflight collection wouldn’t be possible without the creative convergence of three powerhouses:

• Saudia: Driving innovation in guest experience and luxury travel
• ELIE SAAB: Lending haute couture elegance to aviation
• FORMIA: The industry leader in premium, sustainable inflight products

“We are delighted to collaborate with Saudia and offer guests a glimpse into the refined world of ELIE SAAB,” said Elie Saab Jr., CEO of the ELIE SAAB Group.

Roland Grohmann, CEO of FORMIA, echoed the sentiment: “This collection blends sustainability with luxury—marking ELIE SAAB’s stunning debut in the skies.”

Elevating Expectations: The Future of Travel is Here

As Saudia continues to transform its fleet and guest experience, this ELIE SAAB collaboration is more than a fashionable footnote—it’s a statement of intent. It signals a new era in which travel is not just about reaching a destination, but about arriving with style, comfort, and consciousness.

Whether you're a frequent flyer or planning a once-in-a-lifetime trip, this collection promises to turn your next journey into a runway moment.

Final Boarding Call: Luxe is Now a Carry-On

Forget “just another flight.” With Saudia and ELIE SAAB, your journey begins the moment you step onboard. So pack your bags—or better yet, let Saudia hand you one that’s already perfect.

— A Sweet Tribute to the Guardians of the Skies

A Celebration at 36,000 Feet—Grounded in Gratitude

On 26 April 2025, something heartwarming happened at Bandaranaike International Airport, Sri Lanka’s aviation hub. While aircraft zipped across skies and flight plans buzzed through terminals, SriLankan Airlines paused to honor the very souls who make the skies safer and the world smaller—their pilots.

At the Flight Dispatch Centre, the usually stoic rhythm of flight operations gave way to laughter, gratitude, and yes—pilot-themed cupcakes. The airline marked International Pilots’ Day with a cozy, spirited gathering to show appreciation for their frontline fliers, the unsung heroes behind every smooth takeoff and safe landing.

More Than a Badge—A Symbol of Soaring Spirit

As part of the tribute, pilots were presented with special vehicle badges—not just any tokens, but emblems bearing the iconic winged crest of SriLankan Airlines. This small but symbolic gesture carried a powerful message:

“You are not just pilots. You are ambassadors of trust, dedication, and connection.”

These badges now gleam on their vehicles as everyday reminders of the lives they’ve changed—by bringing people together across oceans, time zones, and continents.

Cupcakes, Camaraderie & Cockpit Memories

The event wasn’t just about ceremonies. It was intimate and meaningful—cupcakes with icing shaped like tiny jets, stories shared of turbulent skies turned calm, and laughter echoing in the halls where flight logs and forecasts usually rule.

Pilots mingled, sharing anecdotes—from their first solo flights to unforgettable missions across the Indian Ocean. It was a chance to pull back the curtain on the life of a pilot—a mix of discipline, skill, adventure, and, at times, unimaginable pressure.

Connecting the Dots—And the World

SriLankan Airlines’ tribute comes at a time when aviation’s role in global connectivity has never been more profound. Whether it's reuniting families, enabling global trade, or aiding humanitarian missions, pilots do more than fly planes—they knit the world together.

SriLankan’s flight crews are especially known for navigating complex routes across Asia, Europe, the Middle East, and Australia, maintaining a standard of excellence that reflects Sri Lanka’s warmth and hospitality.

Pilots: The Human Wings of Aviation

Behind every flight number is a face. A person who’s trained through thousands of hours, faced midnight layovers, fought through fatigue, and still smiled as passengers disembarked safely.

This Pilots’ Day, SriLankan Airlines reminded the world that aviation is not just about technology—it’s about humanity. It’s about the men and women in the cockpit who carry dreams, not just passengers.

Final Approach: A Toast to the Skywalkers

As the event wrapped up—with cupcakes half-eaten and badges proudly worn—it was clear that SriLankan Airlines had done more than host a gathering. They’d reignited pride in the profession, reminded everyone of the magic of flight, and added a touch of sweetness to high-flying responsibilities.

So next time you hear the click of a buckle or feel the plane tilt upward into the clouds, spare a thought for the pilot in command. They’re not just steering machines—they’re navigating lives.

Would you dare to fly if not for them?

Let us know how a pilot changed your journey—or your life.

In early April 2025, U.S. President Donald Trump effectively raised baseline tariffs on Chinese imports to 145%, triggering a swift Chinese response that saw duties on U.S. goods climb to 125%. This dramatic escalation shattered decades-old duty-free norms in global aviation, leaving both Chinese airlines and U.S. planemaker Boeing caught in a tariff tailspin.

Economists warn that such steep levies risk pushing the world economy toward recession: in a Reuters poll, 92% of surveyed economists said they viewed Trump’s tariffs negatively, downgrading 2025 global growth forecasts from 3.0% to 2.7%.

Planes in Limbo: Boeing’s 737 MAX Returns

China’s commerce ministry publicly acknowledged on April 29 that “China’s affected airlines and Boeing have suffered greatly,” marking the first time Beijing has commented on aviation-sector fallout from the trade war. The flashpoint: three 737 MAX jets, fully outfitted at Boeing’s Zhoushan completion center, were flown back to the United States after Chinese customers balked at accepting delivery under the new tariff regime. Industry sources say dozens more aircraft could be redirected or left in bonded storage to avoid the punitive levies.

Why Return Jets Instead of Paying Tariffs?

At roughly $55 million apiece, a 125% tariff adds nearly $69 million to the cost of each aircraft—an untenable burden for any airline. While Boeing explores alternative buyers for up to 50 stranded jets, Chinese carriers face capacity shortfalls just as Asia’s air travel demand is rebounding from the pandemic slump.

Ripple Effects: Supply Chains, Investment, and Air Travel

The tariff standoff extends well beyond undelivered planes. Beijing warns that U.S. levies have disrupted global supply chains, air transport, and cross-border investment activities. Component suppliers from landing-gear manufacturers to avionics producers now face uncertainty: delayed orders and cancelled contracts ripple through the aerospace ecosystem, threatening thousands of jobs on both sides of the Pacific. Meanwhile, Chinese airlines must weigh the financial hit of higher costs against fleet expansion plans essential to meet surging passenger demand across Asia.

Beijing’s Countermove: Targeted Exemptions and Olive Branches

In a bid to cushion the blow, China has begun exempting select U.S. imports from its 125% tariffs. French engine-maker Safran confirmed Beijing granted duty relief on critical aerospace parts—engines, landing gear, and other components—to keep existing maintenance and repair operations afloat. Additionally, Chinese authorities are surveying domestic firms to identify essential foreign-made goods that must flow tariff-free, signaling a willingness to preserve key industrial links despite the broader trade confrontation.

What’s Next? Charting a New Flight Path for Sino-U.S. Aviation Ties

Both governments profess openness to dialogue. China’s commerce ministry “hopes Washington will listen to companies’ concerns and create a stable trade environment”. On the U.S. side, Boeing CEO Kelly Ortberg has urged policymakers to seek a resolution, warning that exclusion from China—a market historically accounting for about 10% of Boeing’s $500 billion backlog—could undercut the planemaker’s recovery.

Analysts say a phased tariff rollback, coupled with side-deals on aerospace cooperation, may unlock the logjam. Until then, undelivered jets will sit idle, supply chains stay jittery, and both nations’ broader economic health remains at risk. As trade diplomats reconvene in coming weeks, the aviation industry watches nervously: the next move could determine whether these grounded ambitions ever take flight again.

With Inputs from Reuters

When two of the Northeast’s biggest carriers decide to rekindle their partnership, what could possibly go wrong? After the dramatic collapse of their Northeast Alliance (NEA), American Airlines and JetBlue Airways flirted with a fresh pact—only to see talks fizzle and tensions flare into a lawsuit. Here’s the inside story on what happened, why it matters, and where both airlines might be headed next.

Background: The Rise and Fall of the NEA

In July 2020, American and JetBlue launched the Northeast Alliance to coordinate flights and share revenue in the fiercely contested New York market. Approved just days before the end of the Trump administration in January 2021, the NEA promised to bolster American’s struggling presence at key airports and give JetBlue’s loyalty program a boost. However, a May 2023 non-jury trial found the alliance violated federal antitrust laws—a ruling later upheld on appeal—forcing the NEA’s unwinding and leaving both carriers to pick up the pieces.

Why Talks Collapsed: Money, Operations, and Antitrust Woes

American Airlines Vice Chair Steve Johnson revealed that despite “attractive proposals,” the two sides couldn’t agree on a structure that balanced operational efficiencies with financial viability. JetBlue, meanwhile, had been exploring partnerships with multiple carriers, willing even to inject more capital to clinch a deal—yet couldn’t bridge the gap with American’s demands. Beyond dollars and cents, lingering antitrust concerns hung over negotiations: any new pact risked fresh regulatory scrutiny after the NEA’s earlier undoing.

The Lawsuit: Dollars, Disputes, and Demands

With talks officially dead, American filed suit in a Texas court seeking over $1 million in unpaid funds tied to the NEA’s dissolution—excluding legal fees and costs. The lawsuit aims to reconcile accounting disputes and recover monies American temporarily set aside while negotiations were underway. For American, it’s as much about principle—holding JetBlue to its financial obligations—as it is about recouping cash.

JetBlue Responds: Cautious Collaboration Continues

JetBlue’s public response was measured: the carrier says it “has been working collaboratively with American to wind down the NEA” and will review the complaint, but declined further comment due to ongoing litigation. Behind the scenes, JetBlue still seeks alliances to enhance its network and loyalty offerings, speaking with other airlines even as legal fire sparks between the former partners.

What’s Next: Market Impacts and Strategic Shifts

• For Travelers: Expect less codeshare connectivity between the two airlines in the Northeast, potentially meaning fewer seamless itineraries and loyalty benefits.
• For Competitors: Other carriers like Delta and United may seize the moment, courting both airlines’ stranded customers with promotional fares and expanded service.
• For Regulators: The litigation underscores Washington’s wariness of airline consolidation—a trend that could shape future merger and partnership reviews.

Conclusion: Turbulence Ahead?

The abrupt end to American and JetBlue’s second bid at partnership underscores the high stakes of airline alliances in an era of antitrust vigilance. As both carriers chart independent courses—one through the courtroom, the other through alternate deals—passengers and investors will be watching closely. Will American recover its losses? Can JetBlue find a partner willing to navigate regulatory headwinds? The answers will help set the flight path for Northeast aviation in the years to come.

With Inputs from Reuters