(NEW YORK) — Thursday marks a week of travel woes across the country with more than 8,000 flight cancellations nationwide since Christmas Eve. As millions of Americans travel during what could be the busiest travel period since the start of the pandemic, airlines have been slammed with both winter weather and rising COVID-19 cases among flight crews.
Now, at least one major U.S. airline, JetBlue Airways, is signaling this weeklong crush of cancellations may just be the beginning.
JetBlue said on Wednesday it is preemptively canceling more than 1,200 flights over the next two weeks in order to have enough crews available to run a reliable operation.
“While the new CDC guidelines should help get crewmembers back to work sooner, and our schedule reduction and other efforts will further ease day-of cancellations, we expect the number of COVID cases in the northeast — where most of our crewmembers are based — to continue to surge for the next week or two,” the airline said in a statement. “This means there is a high likelihood of additional cancellations until case counts start to come down.”
On Thursday, more than 1,100 flights were canceled in the U.S. as of 2:30 p.m. ET.
Seattle Tacoma International has been impacted the most, holding the top spot for the most cancellations in the world for a third day in a row with nearly a third of all flights grounded. The airport added, “Staffing issues may bring further delays in operations.”
Alaska Airlines, whose main hub is in Seattle, is reporting call hold times of more than 10 to 20 hours.
“We strongly urge flyers with non-essential travel scheduled before January 2, 2022, to consider changing their travel to a later date using our flexible travel policy,” the airline said in a statement Wednesday.
The disruptions come as airports brace for the more than 10.5 million fliers estimated to fly from now until Jan. 3. The busiest New Year travel days are still ahead with Hopper forecasting 2.5 million could fly on Jan. 2 and Jan. 3.
Delta Air Lines is already projecting 200 to 300 daily cancellations for the upcoming weekend as “teams across [their] system continue to do all possible to mitigate constraints from increasing winter weather and the omicron variant.”
Experts say the COVID-19-related cancellations should be a reminder to holiday fliers to protect yourself as much as you can during travel.
“These cancellations are reasons why it’s important for people to wear the masks, wash their hands frequently and reduce movement around the cabin when you’re on a plane,” aviation expert Henry Harteveldt said. “It’s just really important. All of these are part of layers of safety to keep everyone as healthy as possible while traveling for the holiday.”
(NEW YORK) — Over the past year, routine space tourism emerged from science fiction to reality, digital art you can’t even touch auctioned for millions at Christie’s, and malicious attacks emanating from cyberspace crippled real-world critical infrastructure in the U.S.
The technology industry unceasingly shaped the way Americans lived in 2021, embedding its brands and tools into intimate parts of daily life as the ongoing pandemic further normalized virtual work, school and socializing.
The promises of tech’s ability to make our lives easier and more efficient continued to drive U.S. economic growth in the shadow of the relentless health crisis, but also exposed new pitfalls as more Americans lived their lives in a digital world where misinformation on everything from elections to vaccines thrives. This manifested off-the-screen in ominous ways during 2021, including an unprecedented post-election riot at the U.S. Capitol on Jan. 6 and an “anti-vax” movement that has prolonged the suffering wrought by the COVID-19 pandemic.
The gatekeepers of Big Tech saw their net worth surge over the past year, but also endured a year of major shakeups: from Jeff Bezos stepping down as Amazon CEO, to a scandal-plagued Facebook rebranding as Meta, to Jack Dorsey resigning from Twitter. The mounting power of tech giants also came under renewed scrutiny — albeit accompanied by little action — from lawmakers on both sides of the aisle.
Despite the wild 12 months where Americans watched, seemingly in real time, as technology transformed society in good and bad ways, experts are holding onto hope that the lessons we’ve learned in 2021 can inform us going forward.
“I’m trying desperately to be optimistic,” Karen Kornbluh, the director of the Digital Innovation and Democracy Initiative at the German Marshall Fund, and a former U.S. ambassador to the Organization for Economic Cooperation and Development during the Obama administration, told ABC News of the tech industry’s past year. “This has been a learning year. We didn’t need another learning year — but I do think a lot of people learned a lot about how this all works and how entrenched it is and how dangerous it is.”
Still, Kornbluh argues that the tech sector is “so innovative and creative and allows people to do so many things we never could have imagined before.”
“We can’t lose our sense of wonder about it all, and because there are these new opportunities, I do think the industry is going to try to put a lot of these problems behind it before we move into this new era,” she said.
Here is a look at the year in tech, lessons the industry has learned and what to expect looking forward into 2022.
Jeff Bezos becomes an astronaut and routine space tourism blasts off
While it used to take the backing of entire nations to launch humans into space, that has all changed in the past year as the new billionaire-backed corporate space race officially blasted off to new heights.
A record-high 13 human spaceflights were launched in 2021, more than triple the number launched in 2020. Eight of them were launched with the backing of private industry and one more carried a Japanese millionaire tourist as a passenger.
Key players in the emerging space tourism sector — including Elon Musk’s SpaceX, Jeff Bezos’ Blue Origin, and Richard Branson’s Virgin Galactic — all flexed their muscles over the past year in a series of launches that sought to prove humanity’s new capability of routine spaceflight.
The industry took heat from some as simply a new playground for the ultra-wealthy, as pandemic-battered Americans watched billionaires including Bezos and Branson blast off on back-to-back joyrides to the edge of space this past summer and initial seats sold for up to $28 million. While economic inequality and environmental concerns compounded animosity towards this new arena, experts have argued that private sector involvement in the new space race has saved money for NASA and driven new innovations that can improve everyday life back on Earth.
For Star Trek actor William Shatner, who became the oldest person to go to space this past October at the age of 90 on a Blue Origin flight, the new technology that allows humans to take a quick trip to the edge of space instilled a deep sense of awe.
“What you have given me is the most profound experience. I am so filled with emotion,” the actor, who spent his career pretending to cruise the cosmos, told Bezos immediately upon landing. “I hope that I can maintain what I feel now. I don’t want to lose it. I am overwhelmed.”
“Everybody in the world needs to do this,” Shatner added.
NFT craze goes mainstream, upending the art world and headlining Macy’s Thanksgiving Parade
Over the course of 2021, non-fungible tokens (NFTs) went from an obscure buzzword among blockchain insiders to an inescapable craze that even headlined the Macy’s Thanksgiving Day parade.
NFTs, or one-of-a-kind digital artifacts that use blockchain technology (the same digital ledger system that supports cryptocurrency) to prove ownership and individuality, exploded in popularity over the past year in a craze that has left some scratching their heads.
In February, Twitter founder Jack Dorsey sold the first-ever tweet (a 2006 social media post that reads “just setting up my twttr”) as an NFT for some $2.9 million. In April, a collage made by digital artist Mike Winklemann (also known as Beeple) fetched a whopping $69 million when it was auctioned by Christie’s.
The sum at which Beeple’s art sold especially raised eyebrows for some. The artist has been known to upload his digital artwork for free on Instagram and his website, leading many to question what is driving the value of him now selling it in the form of an NFT. More perplexing for some, viral memes and gifs that were once sources of free and seemingly useless entertainment online are also fetching huge sums of cash when sold as NFTs. The so-called “nyan cat” meme, a digital image of a pixelated feline flying on a rainbow, racked in nearly $600,000 when it was sold as an NFT in February.
It’s estimated that total NFT sales are expected to generate a staggering $17.7 billion in 2021 alone, according to research compiled by crypto industry outlet Cointelegraph.
Despite some skeptics calling the craze a bubble, many experts don’t see demand for NFTs dwindling anytime soon — especially as the world increasingly shifts online and with the mainstream launch of the metaverse.
“They’re here to stay,” Christian Catalini, the founder of the Massachusetts Institute of Technology’s Cryptoeconomics Lab, told ABC News of NFTs. “Because they do represent a fundamentally novel way to design all sorts of interactions.”
“I think we’re still in a very embryonic phase and I would assume as the space matures, that’s when actually these things will become more useful,” Catalini added.
“Often with technology, we tend to overestimate how quickly it can change our lives in the short term, or we also tend to underestimate how much it will change them in the long term,” Catalini said. “With all of these technologies, there’s a lot of potential in the long run, and there’s a lot of things that need to be figured out in the immediate term — and I think that’s all happening live, right now.”
The rise of ransomware
The widespread adoption of new technology also led to new threats emerging from the cyber world. A spate of high-profile cyberattacks, many involving ransomware, revealed new potential dangers for businesses and even critical infrastructure as attackers seemingly grew more brazen with their targets in 2021.
A cybersecurity attack in May on Colonial Pipeline, operators of one of the largest fuel conduits in the U.S., led to a multi-day shutdown of the pipeline that provides nearly half of all fuel used on the East Coast — by hospitals, schools, and much more. The company ended up paying the hackers some $4.4 million in cryptocurrency, some of which the Department of Justice eventually seized back. Just weeks later, the world’s largest meat processor, JBS, revealed it was also hit by a cyberattack involving ransomware.
Experts say use of this malicious technology surged over the past year due to a confluence of factors, including the rise of harder-to-trace cryptocurrency and a work-from-home boom that has resulted in novel IT vulnerabilities for many firms.
“Ransomware attacks are becoming more prevalent, and especially with more enterprises in a semi-remote environment,” tech industry analyst Dan Ives, managing director of equity research at Wedbush Securities, told ABC News, “and the ransomware attacks, we expect they could be up another 50%, going into 2022.”
“That’s really going to catalyze more spending for cybersecurity,” he added. “We think cybersecurity spend is going to skyrocket over the next year given the amount of threats facing enterprises, as well as governments, around the world.”
Tech fuels a ‘green tidal wave’ in autos
Also over the course of 2021, it became undeniable that the auto industry as a whole was reaching an inflection point and shifting away from the gasoline-burning combustion engines that have been used for generations and toward electrification.
Nearly every major car producer — from General Motors to Ford to Toyota — announced massive new investments into electrification of vehicles over the past year, and the Biden administration unveiled the goal of half of all new car sales in the U.S. to be electric vehicles by 2030.
“It’s really a green tidal wave that’s taken hold in terms of more consumers wanting to purchase electric vehicles,” Ives told ABC News. “Today, only 3% of automobiles in the world of EVs. We think that that goes to 6% by 2022 and 10% by 2025, and this green tidal wave we view as a $5 trillion market over the next decade.”
“You’re also seeing a blurring of lines between technology and autos” Ives said. “I think that’s going to be a big theme as companies like Apple, Google, and Amazon focus more and more on electric vehicles.”
In the shadow of scandal and scrutiny, Big Tech pivots toward the metaverse
In the wake of multiple scandals plaguing his beleaguered tech giant, CEO Mark Zuckerberg announced this year that he was changing the company’s name from “Facebook” to “Meta” to reflect a shifting focus on the metaverse.
The three-dimensional digital world created by augmented and virtual reality products and services, will be “the successor to the mobile internet,” Zuckerberg said during his keynote at Facebook’s Connect conference in late October. The chief executive’s vision for the metaverse will be a place where people meet, socialize, work and shop — all via a digital avatar of themselves and VR hardware.
2021 marked the year the metaverse took “center stage of growth, as more investors realize this is not just about the gaming sector,” Ives told ABC News.
“It’s going to take time for the metaverse to ultimately form, to unleash the potential that many see for it today,” he added, but said ultimately, “the metaverse is going to be a trillion-dollar market over the next decade.”
It’s not just Facebook-turned-Meta that has its eyes on the new digital horizon either, Ives added, saying, “We believe Apple, Microsoft, Google and Facebook combined could spend $10 billion on the metaverse over the next two years.”
Public trust in tech giants to build a new digital world safely has dwindled over the past year, as whistleblower Frances Haugen accused Facebook of “choosing to prioritize its profits over people” in her opening statement while testifying before lawmakers in October. Haugen alleged blatant disregard from company executives for potential harms their services can cause to democracy and the well-being of young people.
Kornbluh, who has spent the past year working with policymakers and beyond on potential reforms for an industry that has been largely left unregulated, also testified alongside Haugen in front of a House panel at a separate hearing earlier this month.
“It’s been a year when sort of the collective ‘we,’ like the policymakers in general, came to a better understanding of the problem and solution set,” she told ABC News of the renewed focus out of Washington on Big Tech. Still, with partisan politics and a midterm election year, she said she’s skeptical we will end up seeing any actual law changes in the near-term.
“I think Congress has made a lot of progress in thinking about it, but I think it’s hard to imagine that they’ll come to some agreement in an election year,” she said of any new legislation.
Ives echoed her sentiments, saying that despite the new focus, investors don’t see law changes coming on the immediate horizon.
“It feels like there’s been a tipping point from a regulatory perspective, both in Brussels as well as the Beltway, focused on the antitrust, monopolistic nature of these businesses,” Ives told ABC News. “The lack of consensus within the Beltway continues to be the dividing issue to get law changes.”
Despite the apparent impasse, Kornbluh says with Facebook and tech giants “moving onto the metaverse, do they want to keep having all these same discussions about social media?”
“I think the platforms may want to move on, and realize it’s not going to fix itself,” she said, suggesting companies themselves have signaled they are more open to reforms related to internet regulation.
Despite the volatile past year, Kornbluh said she remains optimistic about the future of tech, and especially the metaverse.
“It’s going to open up all kinds of creativity and innovation and hopefully, because there are these new opportunities for new industry and new businesses, that that will clear up a lot of this underbrush that we learned about before we get there,” she said. “Hopefully this was like a run, and we’ll figure out what to do differently before we move on.”
(NEW YORK) — The omicron variant continues to wreak havoc on holiday travel from coast to coast.
Over the weekend, airlines reported more than 3,000 flight cancellations with at least one stop in the U.S, according to FlightAware, and the travel troubles don’t seem to be letting up anytime soon. As of 11:30 a.m. Monday morning, nearly 1,000 flights had already been canceled, and the number was steadily creeping up by the hour.
United, Delta, JetBlue, American and Alaska cited the recent COVID-19 surge as one of the reasons for the cancellations because it has left them with crew shortages. In an effort to avoid more disruptions, JetBlue and Alaska have even resorted to offering extra pay to healthy employees who can pick up additional shifts.
Winter weather in the western part of the country didn’t help — slamming airports in Seattle, Los Angeles and Denver. Those three airports accounted for more than 600 flight cancellations on Sunday alone.
“COVID delivered this disruption,” Spokesperson for the Allied Pilots Association Capt. Dennis Tajer said. “And it just shows you how tight the buffer is in the airline business right now, where they’re trying to fly as many flights as possible with just a handful of folks. So this is a little bit of a, you can’t plan for something like this, but you certainly should have a little bit better of a buffer, especially in this important travel period where folks are trying to get to their families.”
A majority of the flight cancellations luckily landed on traditionally slow travel days — Christmas Eve and Christmas — but there are still an estimated 16.5 million more fliers before the end of the holiday travel rush, according to the Transportation Security Administration.
“Omicron places airlines in a very tough position,” aviation expert Henry Harteveldt told ABC News. “Still reeling from major financial losses in 2020, airlines don’t want to forfeit any opportunity to generate revenue and, possibly, profits. Plus, no airline wants to cancel fully booked flights at any time — especially at Christmas. Given the random nature of how omicron strikes people, it’s also impossible for airlines to know who will get sick.”
He says that for now there is no end in sight to the travel chaos.
“It’s impossible to predict an end date for the omicron-related cancellations,” Harteveldt said. “Unlike when an airline suffers a disruption caused by weather, this virus is random. The best way to estimate its impact on airlines and other industries is to look at the broader trend.”
Airlines for America, the group that lobbies on behalf of all major U.S. airlines, has been calling on the Centers for Disease Control and Prevention to shorten the quarantine time for fully vaccinated individuals in attempt to minimize disruptions from the omicron surge.
“The omicron surge may exacerbate personnel shortages and create significant disruptions to our workforce and operations,” Nick Calio, A4A’s CEO, said in a letter on Thursday to CDC Director Rochelle Walensky.
Calio proposed the isolation period to be shortened to five days from symptom onset for breakthrough infections.
“In turn, those individuals would be able to end isolation with an appropriate testing protocol,” Calio wrote.
The letter comes after Delta Air Lines and JetBlue Airways, both A4A members, also asked for isolation periods for fully vaccinated individuals to be shortened.
ABC News’ Joanne Aran and Erielle Reshef contributed to this report.
(NEW YORK) — With the number of COVID-19 cases surging in New York, workers in the entertainment industry, many of whom are freelancers, are worried about the prospect of another shutdown.
At least 12 Broadway shows have canceled performances due to performers and staff testing positive. Three Broadway shows, “Jagged Little Pill,” “Waitress” and “Thoughts of a Colored Man,” announced they will close their doors permanently, after detecting multiple positive COVID-19 cases.
While understanding of the precautions, entertainment workers — many of whom have been in a precarious position for nearly two years as the live performance industry has been heavily impacted by the pandemic — are left worried this holiday season about their financial futures, especially without the safety net of benefits that had been provided in 2020.
“Eliminating the ushering salary would take a huge hit on anyone’s finances. I don’t think anyone’s really doing this just for fun, they’re doing it because they really need the money,” Rachel, an usher for a Broadway show who did not want her last name or the name of her employer used, told ABC News.
The production Rachel works for has not yet canceled a performance during this surge, and she said she feels confident in the safety protocols in place, including regular testing and indoor mask mandates, especially given the number of people she interacts with at work. But, given the rapid spread of the highly transmissible omicron variant, Rachel is still worried about the prospect of shows getting canceled.
“It’s just inevitable. It’s just a matter of time at this point. With how things are spreading, to me, it seems almost impossible to avoid,” said Rachel.
When the pandemic first hit, Rachel said she was put on furlough and was able to take advantage of unemployment benefits until the industry reopened. These pandemic-era unemployment benefits — a federal supplement on top of states benefits — are no longer available.
The prospect of shows closing again scares Rachel, who said she, like many of her colleagues, needs to work another part-time job along with ushering to cover her costs.
“It would be probably devastating because it would be a matter of going back on to unemployment in order to get paid. But at this point, there are no pandemic-like increases for the unemployment, so [it] would definitely not be enough for me to cover my expenses,” Rachel said.
Though she needs the money she gets from ushering, she said she would feel more comfortable if workers would be able to take a temporary break through the holidays.
“Would it have prevented any spread? I don’t know. Would it make me feel better? Yes. Would I lose lots of money? Yes,” Rachel said.
Elizabeth, who asked that her last name be withheld, is a freelance opera singer and has had several performances at Carnegie Hall canceled this week due to people testing positive for COVID-19, many despite being fully vaccinated and boosted. She said one of her colleagues will be missing all her Christmas shows. Christmas season is usually a high-volume time for musicians with many holiday shows going on.
Elizabeth and her wife, Sara, who both currently work in the entertainment industry, were able to stay afloat during the pandemic because of an accounting job Sara had.
Sara, who also asked that her last name be withheld, took the accounting job just before the pandemic hit and stayed there for a year. Due to her fibromyalgia, the job left her feeling burned out and sick. She left that position and took a six-month break when Elizabeth’s work started to pick up.
Elizabeth, who still had a part-time teaching job throughout most of the pandemic, lost a large portion of her income because of shutdowns. That left her only qualifying for six weeks of unemployment benefits.
During the six months Sara had taken off work, the two burned through savings they had.
“We weren’t expecting it to be bad again. We’ve just started rebuilding, financially,” Sara said. “I took this job, and she’s finally getting work again. And now we’re starting to see her first cancellation was this week.”
Three of Elizabeth’s shows this week were canceled, in addition to two more shows in January.
“It’s definitely scary. Because this time if things shut down again, we don’t have a safety net,” Sara said.
The couple said they would not be able to afford losing any of their pay.
Even now, their finances are very tight and they are having to cut costs on essential things, like health care. Sara should be going to the doctor every month for checkups but she hasn’t been since September.
“I’m getting medication still, but I’m not seeing the doctor as much as I should. I just haven’t been going,” she said. “We’re crossing our fingers and hoping nothing bad happens.”
(NEW YORK) — As pre-pandemic level crowds hit the airports for the holidays, three major U.S. airlines have been forced to proactively cancel more than 300 Christmas Eve flights due to the fast-spreading omicron variant of COVID-19.
United Airlines has cancelled 169 flights for Christmas Eve, as of Friday morning.
MORE: Winter holiday travel rush likely to approach pre-pandemic levels
“The nationwide spike in omicron cases this week has had a direct impact on our flight crews and the people who run our operation,” United said in a statement. “As a result, we’ve unfortunately had to cancel some flights and are notifying impacted customers in advance of them coming to the airport.”
“We’re sorry for the disruption and are working hard to rebook as many people as possible and get them on their way for the holidays,” the airline added.
A United Airlines airplane is pushed back from its gate at Newark Liberty International Ai…Read More
And it’s not just United that’s feeling the impact of the variant on crews.
Delta Air Lines has cancelled 124 flights for Christmas Eve. The airline says the “flight cancellations are due to a combination of issues, including but not limited to, potential inclement weather in some areas and the impact of the omicron variant.”
“Delta teams have exhausted all options and resources — including rerouting and substitutions of aircraft and crews to cover scheduled flying — before canceling around 90 flights for Friday,” Delta said in a statement to ABC News. “We apologize to our customers for the delay in their holiday travel plans. Delta people are working hard to get them to where they need to be as quickly and as safely as possible on the next available flight.”
Alaska Airlines has resorted to offering extra pay to their healthy employees who can work added shifts into this upcoming Christmas weekend.
The airline says they have had to cancel 10 Christmas Eve flights due to some of their employees quarantining after reporting that they may have been exposed to COVID-19.
Airlines for America (A4A), the group that lobbies on behalf of all major U.S. airlines, is calling on the Centers for Disease Control and Prevention to shorten the quarantine time for fully vaccinated individuals, saying the omicron surge may create “significant” disruptions.
People wait in line to check in at the United Airlines ticket counter at Hartsfield-Jackson…Read More
“The omicron surge may exacerbate personnel shortages and create significant disruptions to our workforce and operations,” Nick Calio, A4A’s CEO, said in a letter on Thursday to CDC Director Rochelle Walensky.
Calio proposed the isolation period to be shortened to five days from symptom onset for breakthrough infections.
“In turn, those individuals would be able to end isolation with an appropriate testing protocol,” Calio wrote.
The letter comes after Delta Air Lines and JetBlue Airways, both A4A members, also asked for isolation periods for fully vaccinated individuals to be shortened.
(NEW YORK) — The transportation industry has been bracing for pre-pandemic-level crowds this holiday season, but now two major U.S. airlines have been forced to proactively cancel some Christmas Eve flights due to the fast-spreading omicron variant of COVID-19.
As of Thursday evening, United Airlines has proactively cancelled 112 flights for Christmas Eve.
“The nationwide spike in omicron cases this week has had a direct impact on our flight crews and the people who run our operation,” United said in a statement. “As a result, we’ve unfortunately had to cancel some flights and are notifying impacted customers in advance of them coming to the airport.”
“We’re sorry for the disruption and are working hard to rebook as many people as possible and get them on their way for the holidays,” the airline added.
And it’s not just United that’s feeling the impact of the variant on crews.
Delta Air Lines also proactively canceled around 90 flights for Christmas Eve. The airline says the “flight cancellations are due to a combination of issues, including but not limited to, potential inclement weather in some areas and the impact of the omicron variant.”
“Delta teams have exhausted all options and resources — including rerouting and substitutions of aircraft and crews to cover scheduled flying — before canceling around 90 flights for Friday,” Delta said in a statement to ABC News. “We apologize to our customers for the delay in their holiday travel plans. Delta people are working hard to get them to where they need to be as quickly and as safely as possible on the next available flight.”
Airlines for America (A4A), the group that lobbies on behalf of all major U.S. airlines, is calling on the Centers for Disease Control and Prevention to shorten the quarantine time for fully vaccinated individuals, saying the omicron surge may create “significant” disruptions.
“The omicron surge may exacerbate personnel shortages and create significant disruptions to our workforce and operations,” Nick Calio, A4A’s CEO, said in a letter on Thursday to CDC Director Rochelle Walensky.
Calio proposed the isolation period to be shortened to five days from symptom onset for breakthrough infections.
“In turn, those individuals would be able to end isolation with an appropriate testing protocol,” Calio wrote.
The letter comes after Delta Air Lines and JetBlue Airways, both A4A members, also asked for isolation periods for fully vaccinated individuals to be shortened.
Lingering health concerns about commercial air travel during the COVID-19 pandemic have fueled a boom in private jet travel, a trend that has led to fresh scrutiny of the industry’s taxpayer bailout — which some critics are calling a “handout to the wealthy.”
The multi-trillion-dollar federal rescue for businesses clobbered by the coronavirus included billions for airlines grounded by travel restrictions and safety concerns — and, according to one report, more than half a billion dollars for boutique aviation firms that deliver private jet travel to the super-rich.
“This was the rest of us paying to subsidize the luxury consumption of the very richest people in the country,” Dean Baker, cofounder of the progressive think tank Center for Economic and Policy Research, told ABC News.
During the summer of 2020, at the time of the first of three bailout programs set aside for aviation, industry experts said that private jet operators — just like the commercial airlines — would be confronting substantial drops in revenue. Executives at private aviation firms said they needed the government’s help to save the jobs of their employees.
But at the same time, many of those same executives said publicly that they saw signs of a coming boom, fueled by concerns about the pandemic.
That forecast is now coming to pass, making the once-niche industry an overnight sensation thanks to those who can afford to shell out up to $20,000 for a flight across the country. Industry analysts say private aviation has now exceeded pre-pandemic levels of popularity.
“Private aviation has bounced back faster than many industries, including the airlines,” said Travis Kuhn, vice president of market intelligence at the aviation consulting firm ARGUS International. “At this point in time, private air travel is about 15% larger today than it was two years ago — and it is almost all directly attributed to the pandemic.”
Furthermore, Kuhn said that after flocking to private aviation “for the perceived health advantages” of avoiding crowded airports and commercial planes, wealthy Americans “have since discovered the time-saving and productivity advantages” — a sign that the increased interest in private aviation may be here to stay.
In 2020, private aviation firms collected a total of up to $643 million in government funds from the Payroll Support Program, the Paycheck Protection Program, and the Economic Injury Disaster Loan program for small businesses, according to an analysis from Accountable.US, a government watchdog group. Subsequent iterations of the Payroll Support Program released even more funds to the private jet industry.
The overwhelming majority of funds delivered to private aviation firms came as grants that do not need to be repaid, as long as beneficiaries refrained from “conducting involuntary furloughs or terminations of employees” through September of 2021.
But some critics are calling on the firms that rebounded quickly to voluntarily return some of the money.
“These days, it seems many private jet companies are celebrating even greater fortune and opportunity regardless of government aid received,” said Kyle Herrig, the president of Accountable.US. “It’s time to pay taxpayers back.”
Among the biggest bailout recipients was OneSky Flight, an Ohio-based business aviation portfolio of brands like FlexJet, Sentient Jet, and PrivateFly, which received $81 million from a pot of money set aside in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help airlines. In a 2021 extension of the program, FlexJet, Sentient Jet and PrivateFly collected more than $50 million more in grants.
Executives at the OneSky companies have described the business as catering to a high-net-worth clientele, largely comprised of corporate clients and wealthy fliers. The companies’ social media feeds are peppered with endorsements from celebrity customers like astronaut Buzz Aldrin and golfer Bubba Watson, and references to their sponsorship of thoroughbred horse racing and an annual snow polo tournament in Aspen.
When OneSky reached out to the federal government for bailout dollars, company executives emphasized the needs of their pilots and flight controllers.
Directional Aviation, OneSky’s parent company, did not respond this week to a request for comment from ABC News.
Dan Hubbard, a spokesperson for the National Business Aviation Association, an industry trade group, told ABC News that “these businesses requested federal aid for the same reason countless other small businesses did: to keep employees on the job.”
“This crisis-moment investment worked — as it has in a host of industries — supporting employees and paving the way for their companies’ gradual recovery,” Hubbard said. “To have denied aviation businesses the same kind of lifeline offered to all other kinds of enterprises would have struck a blow to an entire segment of America’s aviation workforce.”
But critics have pushed back on that premise, arguing that private jet operators could have afforded to support their employees for a short stretch if they anticipated that business would rebound — which many industry executives said publicly at the time.
“It’s true that it does support jobs, but it would also support jobs if we agreed to pick up 25% of the tab for [Amazon CEO] Jeff Bezos’ personal servants,” Baker said of the bailouts. “There are much better ways to create jobs than subsidizing the very rich. If these people value having their private jets, then they will pay what it costs to keep the industry in business.”
Steve Ellis, vice president of Taxpayers for Common Sense, said the success of these firms so soon after accepting government support undermines the spirit of the programs.
“These programs are not designed, nor should they be, to make anyone better off, or even whole. They are a bridge to when our economy is on better footing,” said Ellis, who characterized the bailout as a “handout to the wealthy.”
“The private aviation industry benefited from increased interest during the pandemic … so they got taxpayer cash, and business soared,” he said.
Despite the criticism, some industry experts believe the stimulus of private aviation was warranted. Industry market experts have confirmed that private jet operators, just like the well-known commercial airlines, faced significant revenue drops at the height of the pandemic from mid-March through May of 2020.
Doug Gollan, the editor of Private Jet Card Comparisons, a blog covering the world of private aviation, said the success of the industry now is a reflection of how successful the CARES Act was in getting these businesses back on their feet.
“The money was meant to help companies navigate through the crisis,” Gollan said. “So, for the CARES Act, private aviation was the poster child of what a success story should look like.”
But questions about whether federal support should have more carefully targeted industries that would struggle returning to pre-pandemic levels stem in part from statements made by the private jet operators themselves, who’ve been publicly touting their success as the country emerges from the pandemic.
Kenn Ricci, the CEO of OneSky Flight’s parent company, recently told Bloomberg Media that business is now so good that he plans to expand his fleet by 40% over the next year.
And the recent success of private aviation has led the demand for new aircraft to drastically outpace supply, Bloomberg reported.
“It’s a once-in-a-lifetime grab,” Ricci said.
Lawmakers have previously taken aim at aviation firms that boasted of strong financial returns after accepting funds under the Payroll Support Program. In Oct. 2020, Rep. Jim Clyburn, the chairman of the House Select Subcommittee on the Coronavirus Pandemic, urged four cargo carriers to return hundreds of millions of dollars in government funds.
“It is troubling that Kalitta Air is receiving over $161 million in taxpayer funds intended to cover the wages and benefits of its workers, while simultaneously experiencing increased demand for its services,” Clyburn wrote to one of the companies. “Failing to return the funds to the Treasury would be inconsistent with Congress’ clear intent.”
When contacted this week by ABC News, the committee did not provide an update on the companies’ response. A committee spokesperson also declined to comment on whether the committee would be requesting that private aviation firms return pandemic relief money.
In the meantime, the juxtaposition of executives promoting their success after accepting government funds isn’t lost on some industry leaders. Patrick Gallagher, the president of NetJets, one of Ricci’s biggest competitors, has said that he is “hopeful, as a taxpayer, that some of those CARES Act funds get paid back.”
“We see our competitors touting their recent success and returning to pre-pandemic levels,” Gallagher said. “I’m glad that those funds were available to keep people employed, but many of these companies today are outdoing bolt-on acquisitions and spinning off new ventures.”
“Personally,” Gallagher said, “I am hopeful they are also paying back the tens of millions of dollars that they took to make payroll just a few months ago.”
(NEW YORK) — U.S. traffic safety regulators have launched a formal probe into certain Tesla vehicles after reports emerged that drivers can play video games on the car’s touchscreen while in motion.
A spokesperson for the National Highway Traffic Safety Administration confirmed to ABC News on Wednesday that the agency has opened a preliminary evaluation into certain Tesla vehicles, including the Model 3, S, X and Y, that were produced between 2017 and 2022.
The investigation seeks to “evaluate the driver distraction potential of Tesla ‘Passenger Play,'” the spokesperson told ABC News in a statement.
“NHTSA based its decision on reports that Tesla’s gameplay functionality is visible from the driver’s seat and can be enabled while driving the vehicle,” the statement added.
The agency said it has received one owner complaint describing the gameplay functionality and has confirmed that this capability has been available since December 2020 in Tesla “Passenger Play”-equipped vehicles. Prior to this, enabling gameplay was only possible when the vehicle was in park, according to the NHTSA.
The agency said it seeks to evaluate scenarios in which a driver could interact with the “Passenger Play” feature through its investigation.
Earlier this month, the New York Times published an investigation into Tesla’s video game features highlighting the so-called “passenger play” option. The report stated that an update in Tesla’s software package added at least three games drivers could access while the car was in drive — and that in a warning that appears before the game starts, Tesla signals it is aware of this and that “playing while the car is in motion is only for passengers.” The outlet reports a button asks if the player is a passenger, but a driver can also play by simply touching it.
Distracted driving has been blamed for the deaths of more than 3,000 people in 2019, according to separate data compiled by the NHTSA.
Tesla, which previously disbanded its media relations team, did not immediately respond to ABC News’ request for comment on Wednesday.
In its statement to ABC News, the NHTSA added that it “reminds the public that no commercially available motor vehicles today can drive themselves.”
“Every available vehicle requires the human driver to be in control at all times, and all State laws hold the human driver responsible for the operation of their vehicles,” the agency added. “Certain advanced driving assistance features can promote safety by helping drivers avoid crashes and mitigate the severity of crashes that occur, but as with all technologies and equipment on motor vehicles, drivers must use them correctly and responsibly.”
The latest investigation from regulators comes on the heels of separate, ongoing probe into Tesla’s Autopilot systems that was launched by the NHTSA in August.
(LOS ANGELES) — The Port of Los Angeles predicts it will break a new cargo record in 2021.
The port said it would process about 10.7 million Twenty-Foot Equivalent Units (TEUs) this year, a 13% increase from its 2018 record.
“As we approach a new cargo milestone amid this pandemic, I’m so proud of the resilience of this Port, our labor force and all of our partners,” Port of Los Angeles Executive Director Gene Seroka said in a press release. “While there is much more that we need to improve upon, we’re delivering record amounts of cargo and goods are making their way into the hands of consumers and manufacturers.
Exports have actually been declining in 33 of the last 37 months, according to the release.
The increase in activity at the nation’s busiest port comes as U.S. firms are grappling with supply-chain issues and product shortages, The Associated Press previously reported.
(NEW YORK) — What comes around goes around: Your discarded plastic water bottle may soon become part of your next car.
Automakers are racing to make their vehicles more sustainable — the industry’s favorite buzzword — by turning environmentally unfriendly materials into seat cushions, floors, door panels and dashboard trims. First it was reclaimed wood. Then “vegan” leather. Now, plastic waste from the ocean, rice hulls, flaxseeds and agave are transforming the manufacturing process.
“Everyone is awakening to the problems of plastic and waste,” Deborah Mielewski, a technical fellow of sustainability at Ford, told ABC News.
Ford in particular has been championing the use of renewable materials in its vehicles. In 2008 it replaced the petroleum-based polyol foam in its Mustang sports car with seat cushions made from soy, an industry first. More recently Mielewski and her team started examining how to transform some of the 13 million metric tons of ocean plastic, which threaten marine life and pollute shorelines, into parts for future Ford vehicles. The result? Wiring harness clips in the new Ford Bronco Sport that were once nylon fishing nets.
“Two years ago there was a lot of publicity around ocean pollution and we felt an obligation to do something,” Mielewski said.
Ford acquires the recycled plastic from its supplier DSM, which collects the nets from fishermen who are paid to return them. The nets are harvested, sorted, washed and dried before they’re cut into small pellets and injection-molded into harness clips, which weigh about 5 grams and guide wires that power side-curtain airbags in the Bronco Sport.
Mielewski said Ford is currently testing the recycled plastic’s durability for the Bronco Sport’s wire shields, floor side rails and transmission brackets.
“My hope is we can replace many parts with this material,” she said, adding that more than half of Ford customers “care deeply about the environment and want to understand what companies are trying to minimize their footprint.”
Brian Moody, executive editor of Autotrader, said automakers like Ford have been attempting to produce environmentally responsible vehicles for years. He recalled Ford’s Model U concept which premiered on Jan. 5, 2003, at Detroit’s North American International Auto Show. It had a hybrid engine and its door panels were built with a natural fiber-filled composite material.
“This is not just a passing trend. Sustainability is here to stay,” Moody told ABC News. “Environmental regulations are likely to become more strict in the years to come [and it’s] another incentive for automakers to start looking for a solution right now.”
Automakers deliberately added plastics to reduce the weight and cost of vehicles and increase performance and fuel economy, according to Gregory Keoleian, director of the Center for Sustainable Systems at the University of Michigan.
“About 40 different types of basic plastics and polymers are commonly used to make cars today and state-of-the-art separation technologies are very capital intensive,” he told ABC News. “The majority of plastics are derived from petroleum and natural gas feedstocks and when vehicles are retired these materials are generally disposed of in landfills.”
For German automaker Audi, sustainable materials are a launching point to becoming net CO2 neutral by 2050. Recycled PET bottles are ground up and transformed into a polyester yarn, accounting for 89% of the seat material in Audi’s fourth-generation A3 car. An additional 62 PET bottles were recycled for the carpet in the A3. The carpet and floor mats in the all-electric e-tron GT are made from Econyl, a recycled nylon fiber constructed from fishing nets. The e-tron GT’s 20-inch wheels are also assembled from low-CO2 emission aluminum.
In August, the company showed off its skysphere electric roadster concept, which featured sustainably produced microfiber seat fabric, environmentally certified eucalyptus wood and synthetically produced imitation leather.
“Audi is committed to sustainable materials and we’re implementing these changes in new vehicles,” Spencer Reeder, director of government affairs at Audi, told ABC News. “We have very high standards and fully vet these products.”
Reeder, however, said Audi’s top priority is expanding its lineup of electrified vehicles. By 2025, 30% of Audi vehicles in the U.S. will be full battery electric or plug-in hybrid.
“We’re delivering on things that really truly matter to the environment,” he said. “The focus right now in the industry is on battery materials — nickel, lithium, magnesium — and sustainably sourcing those materials.”
Keoleian pointed out that 17% of U.S. greenhouse gas emissions are from automobiles.
“Automakers leading in sustainability are companies accelerating their launch of EV models,” he said.
Stephanie Brinley, an analyst at IHS Markit, said automakers are promoting these green efforts aggressively because consumers are more curious and aware of the manufacturing process. These eco-friendly materials “have to look good and be durable and work” to win over consumers, she told ABC News.
“If the material performs just as well, consumers will be happy,” she noted, adding, “You’d be hard-pressed to find a consumer who is against sustainable materials.”
Volvo, the Swedish automaker, said it’s addressing all areas of sustainability — not just carbon emissions — in its vehicles. The company said it will go leather-free by 2030 and use a material it developed called Nordico that consists of textiles made from recycled material such as PET bottles, bio-attributed material from sustainable forests in Sweden and Finland and corks recycled from the wine industry.
The automaker has even been “looking to reduce the use of residual products from livestock production which are commonly used within or in the production of plastics, rubber, lubricants and adhesives, either as part of the material or as a process chemical in the material’s production or treatment,” according to Rekha Meena, Volvo’s senior design manager for color and material.
“We see a growing trend in consumer demands for more sustainable materials, particularly alternatives to leather, in most of our key markets due to concern over animal welfare and the negative environmental impacts of cattle farming, including deforestation,” she told ABC News. “We share these concerns and are choosing to transition away from leather and focus on high-quality sustainable alternatives, like Nordico, to meet this customer need.”
Polestar, Volvo’s electric performance brand, cut plastic from its car interiors by choosing a composite made from flax.
The instrument panel in BMW’s all-electric iX SUV is treated with a natural olive leaf extract to avoid any production residue that is harmful to the environment, according to the company. BMW also chose FSC-certified wood and a large chunk of the iX’s door panels, seats, center console and floor are manufactured from recycled plastics.
For its all-new MX-30 EV, Mazda wanted to use materials that “show an even greater respect for environmental conservation,” a spokesperson told ABC News. The center console and door grips in the MX-30 EV are made of cork and the seats feature leatherette and a fabric that uses 20% recycled threads. The door trims also use recycled PET bottles.
Environmental aesthetics will certainly attract a discerning segment of drivers, according to Brinley.
“Some consumers will feel much better about their vehicles,” she said. “But we’re still pretty far away from having a car made entirely from renewable materials.”
Geoffrey Heal, a Columbia Business School professor, said automakers could make an even greater impact by powering their factories with renewable electricity and building cars that are easily recyclable at the end of their life cycle. Reusing plastic and biodegradable materials is laudable but would have to be done at a significant scale to truly be effective, he argued.
“Automakers are doing this because they feel pressure both by consumers and the government. But there is genuinely some concern [by automakers] to make the world a better place,” Heal told ABC News. “These are small steps but every little step helps.”
Ford’s Mielewski said the company will continue experimenting with innovative and earth-friendly materials — agave, potato peels, coffee chaff — to try to reduce Ford’s impact on the planet.
“We’ve been doing this for quite a long time. I hope everyone will join us,” she said.
