National

Over 260 travel industry and business organizations are calling on the Biden administration to end its COVID testing requirement for vaccinated international passengers entering the U.S.

Why it matters: The travel industry has taken multiple blows over the last two years due to the pandemic and emerging variants. Companies are looking to rebound despite another rise in cases. 

What they're saying: "Given the slow economic recovery of the business and international travel sectors, and in light of medical advancements and the improved public health metrics in the U.S., we encourage you to immediately remove the inbound testing requirement for vaccinated air travelers," said the letter addressed to incoming White House COVID-19 response coordinator Dr. Ashish Jha.

"While there is no longer a need for an inbound testing requirement for vaccinated travelers, the economic costs associated with maintaining the measure are significant."

The letter notes that in 2021, business travel spending and international travel spending were 56% and 78% below 2019 levels, respectively. It also points out that many countries with similar infection rates have dropped their pre-departure testing requirements for vaccinated travelers.

The letter is signed by American Airlines, Delta Air Lines, United Airlines Marriott International, Walt Disney Co's Disney Parks, the U.S. Chamber of Commerce and the U.S. Travel Association, among others.

The big picture: The Transportation Security Administration stopped enforcing the Biden administration's rule mandating masks on planes, trains and other forms of public transportation after it was struck down by a federal judge in April.

Over 260 travel, business groups urge White House to end COVID testing for U.S. entry

"[T]he economic costs associated with maintaining the measure are significant," a new letter says.

Photo of an American Airlines plane taking off into the sky from an airport

An American Airlines plane takes off from Los Angeles International Airport on March 23. Photo: Daniel Slim/AFP via Getty Images

Coronavirus testing

Transportation

Coronavirus

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Health

Qantas has ordered 12 Airbus A350s to be used for nonstop flights from Australia to cities such as New York and London from late 2025, the company announced Monday.

Why it matters: The planes are "capable of flying direct from Australia to any other city" in the world, per a Qantas statement.

The plans for some of the world's longest commercial flight routes are another boost for the airline industry as it continues to recover from the pandemic and demand for international and domestic air travel grows.

Of note: Air New Zealand announced earlier this year that it would launch nonstop flights between Auckland and New York this September.

What they're saying: Qantas Group CEO Alan Joyce said in a statement that the purchase of the planes "will make almost any city in the world just one flight away from Australia." 

"It's the last frontier and the final fix for the tyranny of distance that has traditionally challenged travel to Australia," Joyce continued.

The aircraft "will improve how people travel around Australia and overseas," with "lower emissions, longer range, less noise and better economics," Joyce added.

Details: The planes can carry 238 passengers in business, premium economy, and economy, with more than 40% of the cabin dedicated to premium seating, according to Qantas.

The first flights will operate to and from Sydney.

Between the lines: Qantas' long-distance travel plans mean the airline can "reduce debt and forecast a return to profit in the financial year starting July 1," Reuters reports.

Flashback: Qantas set the record for the world's longest nonstop flight in 2019, when the carrier's plane flew for 19 hours 16 minutes from New York's JFK Airport to Sydney.

Qantas to fly nonstop from Sydney to New York and London from 2025

The Airbus A350s are "capable of flying direct from Australia to any other city" in the world, Qantas said today.

Alan Joyce, Qantas Group CEO checks in at JFK airport on October 18, 2019 in New York.

Qantas CEO Alan Joyce at JFK Airport in 2019 ahead of the Australian airline completing a test for the world's longest flight, from New York City to Sydney. Photo:  James D. Morgan/Getty Images for Qantas

Airlines

China is becoming the most formidable rival America has faced, and the risk of confrontation with Russia, North Korea or Iran still looms. Authoritarians are rising, the chaotic Afghanistan exit revealed the limits of U.S. power, and the pandemic, climate change and other critical challenges continue to pose grave threats.

World

Boeing's CEO said Wednesday the manufacturer should have not agreed to former President Trump's proposed deal to build two new Air Force One aircrafts. 

Driving the news: “Air Force One — I'm just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn't have taken,” CEO Dave Calhoun said during a quarterly earnings call. 

“But we are where we are, and we're going to deliver great airplanes and we're going to recognize the costs associated with it," he said. 

Calhoun cited $660 million in costs during the first quarter of 2022 related to the Air Force One contract.

The big picture: Trump and Boeing in 2018 negotiated a $3.9 billion fixed-price contract for a pair of new presidential aircrafts, known as Air Force One when the president is on board. 

The agreement included the two 747-800 aircrafts and the cost of modifying them, including external stairs, large galleys and a secure communications suite.

The deal was negotiated under then-CEO Dennis Muilenburg. Calhoun took over in 2020.

The first of the new Air Force One aircraft is set to be ready in 2024, and the second in 2025.

State of play: Boeing on Wednesday also said it lost $1.5 billion during the first quarter on total revenue of $14 billion, which falls below analysts’ estimates, the New York Times reports.

The manufacturer also reported a loss of about $2.75 per share during the first quarter.

Go deeper ... Trump's $3.9 billion deal for a new Air Force One

Boeing lost $660 million on Trump’s Air Force One deal

“Air Force One — I'm just going to call a very unique moment, a very unique negotiation, a very unique set of risks."

Boeing Co. 737 Max airplanes outside the company's manufacturing facility in Renton, Washington, U.S., on Monday, March 21, 2022

Boeing Co. 737 Max airplanes outside the company's manufacturing facility in Renton, Wash., on March 21. Photo: David Ryder/Bloomberg via Getty Images

Boeing

Whats Next

Axios What's Next

First class air travel is getting an upgrade, with more privacy, larger fold-out beds, and more space for passengers and their belongings. 

The big picture: The rise of premium leisure travel is one of the biggest trends to come out of the pandemic. Airlines are catering to this new class of traveler by investing in expanded cabins, more comfortable seats and fancier airport lounges.

Here's one vision for the first class cabin of the future, from Teague, a Seattle-based design firm:

Its "Elevate" concept is an expansive private suite with a larger fold-out bed, more floor space, customized lighting and more stowage capacity.

All the extra space is possible because of a novel design twist: The furniture is mounted to the plane's sidewalls (instead of the floor) using lightweight, composite braces designed by NORDAM, a big supplier to the aerospace industry. 

Why it matters: Airlines are increasingly using smaller, more efficient aircraft for long-haul flights. But that can leave first class passengers feeling a little cramped. 

By eliminating fixed structures, Teague's "floating" design allows for a more expansive, home-like environment, even on narrow-body, single-aisle jets.

There's an added benefit for airlines: The lightweight structures make flights more fuel-efficient.

What to watch: No word on when the design might show up on your next flight, but Boeing is an innovation partner of Teague.

Image of a single-aisle aircraft with a new design for first class cabins. 

First class cabin offers privacy, even on single-aisle jets. Photo courtesy of Teague 

What's next for first class air travel: floating beds

Airlines are catering to premium leisure travelers.

Image of a novel design for a first-class airline passenger suite

How first class air travel could look in the future. Photo courtesy of Teague

Air travel

Delta Air Lines, United Airlines and American Airlines said that they would allow some passengers who were banned from their flights due to mask violations to board their planes again on a case-by-case basis, CNN reports.

Why it matters: The move comes days after a federal judge struck down the federal mask mandate for travelers, causing several major airlines to lift their own mask requirements.

Details: Despite the restoration of flight privileges for many, customers who remain on Delta and American's permanent no-fly list will stay there. 

These include people whose incidents with mask violations escalated into assault.

United said in a statement to CNN that it would also allow some customers to return after "ensuring their commitment to follow all crewmember instructions on board."

The big picture: The Federal Aviation Administration (FAA) has recorded 1,233 reports of unruly airline passengers as of this past Tuesday. These included 797 mask-related incidents.

The FAA said Wednesday its "zero-tolerance policy" toward unruly passengers will be made permanent.

3 U.S. airlines will let some mask violators return to their flights

Delta, American and United said they would make these decisions on a case-by-case basis.

Photo of a Delta airplane about to lift off in the background as a United airplane's tail is seen in the foreground of an airport

A Delta Airlines plane takes off at Reagan National Airport in Arlington, Virginia on Dec. 24, 2021. Photo: Eric Lee/Bloomberg via Getty Images

Generate

Axios Generate

Beta Technologies, a Burlington, Vermont-based electric aviation company, announced the close of a $375 million Series B funding round on Wednesday, bringing total venture funding for the maker of electric vertical takeoff and landing aircraft (eVTOL) to nearly $800 million.

Why it matters: Beta aims to achieve FAA certification by 2024 and transform the short-range cargo delivery market, from transporting organs to patients to making last-mile and regional cargo deliveries.

The big picture: The funding, led by TPG Rise Climate and Fidelity Management & Research Company, will allow Beta to continue to hone its technology.

The company's aircraft prototype, currently in flight testing, is the dragonfly-like ALIA-250. It can carry up to 1,400 pounds of cargo, or five people plus a pilot.

The plane needs less than an hour to charge after a full mission, the company said in a statement, and on three battery packs (it can hold up to five), the max flight duration is about two hours.

The company is also making a charging network that works for its planes and for electric vehicles.

United Therapeutics, a biotech company founded by Beta director Martine Rothblatt, plans to use the aircraft and chargers for moving manufactured and repaired organs for human transplantation.

The initial charging network includes Bentonville, Arkansas, home to Wal Mart's headquarters. Because the planes take off and land vertically, the stations are not limited to traditional airports.

By the numbers: UPS has ordered 10 aircraft with an option for 140 more. It has also reserved the right to buy Beta's charging stations and sees eVTOL as a way to improve service to smaller markets while reducing its emissions.

Beta's eVTOLs can fly up to 250 miles at 170 mph on a single charge, or about 50 miles further than the distance between Washington, D.C., and New York City.

Blade, a helicopter charter service, ordered five of the ALIA aircraft, with an option for up to 20, for use in transferring passengers between airports or along commuter routes.

The U.S. Air Force is also evaluating Beta's aircraft for its use.

Yes, but: The company has competition in the eVTOL space, several of which went public for financing. These include Lilium Air Mobility, Joby Aviation and Archer Aviation.

Beta stands out for relying on VC funding and institutional investors and focusing on the cargo segment.

Elroy Air, which has raised $50 million, is a competitor in the cargo sector.

Our thought bubble, from Axios transportation correspondent Joann Muller: It's easy to see how electric cargo planes with vertical takeoff and landing capabilities could help companies like FedEx, Amazon and Walmart shuttle goods among warehouses more safely and efficiently.

The trick is balancing the tradeoffs between payload and power. Batteries are bulky and heavy, and they suck a lot of energy just taking off and landing. That cuts down on their flying range and the amount of cargo they can carry.

Editor's note: This article has been updated to clarify that Beta Technologies stands out for relying on institutional investors and VC funding.

Electric aviation startup Beta Technologies raises $375 million

The company is pursuing eVTOL planes and a charging network that can scale.

An ALIA aircraft from Vermont-based Beta Technologies. Photo courtesy of Brian Jenkins/BETA Technologies

Aircraft

Climate change

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

Monday's court ruling striking down the federal traveler mask mandate was met with mixed reactions as companies scrambled to respond.

Driving the news: Several airlines — including the four largest in the U.S. — Uber, Lyft and Amtrak dropped their masking requirements following the Transportation Security Administration's announcement that it will no longer enforce a mandate. 

Other transit services did not take immediate steps and say they're awaiting further guidance from the government.

State of play: United, American, Delta and Southwest Airlines all announced that mask requirements would be suspended in the U.S., and on select international flights, effective immediately.

JetBlue Airways said Monday evening that masks would be optional in the U.S.

Face masks are also now optional onboard all Alaska Airlines and Horizon Air.

Uber announced Tuesday that riders and drivers are not required to wear masks, though it stressed that the Centers for Disease Control and Prevention still recommend them for people with certain risk factors or those living in areas with high transmission levels.

Lyft announced Tuesday that masks will be optional for both riders and drivers, and that Lyft rules will no longer require that the front seat be kept empty or that the windows remain open. Riders and drivers will still be able to cancel rides if they wish, but health safety reasons like no masks will no longer appear as a cancellation option. 

Amtrak also announced that passengers and employees are no longer required to wear masks while onboard trains or in stations.

Meanwhile, several leading transport agencies in key U.S. cities said they would not make any immediate changes to mask requirements. These include:

 The Chicago Transit Authority and the city's commuter rail system Metra.

The Metropolitan Transportation Authority, which operates New York City buses and subway trains, along with two commuter rail services.

The Los Angeles County Metropolitan Transportation Authority and the Los Angeles Department of Transportation.

Worth noting: During the pandemic, airlines have struggled to process unruly passengers; many of these disruptive incidents begin due to  travelers' refusal to adhere to the mask mandate. 

Editor's note: This article has been updated with announcements from more airlines and transportation companies. 

How companies are responding to traveler mask mandate ruling

Uber and Lyft announced Tuesday that riders and drivers are not required to wear masks.

Photo of a masked person walking toward an automatic glass door that has a sticker saying "Face coverings required"

The Ronald Reagan Washington National Airport in Arlington, Va., on April 14. Photo: Ting Shen/Xinhua via Getty Images

Travel

Percentage of 2019 travel spending that companies expect to reach in each quarter

Data: Deloitte Consumer Industry Center; Chart: Baidi Wang/Axios

Many companies had been limiting corporate travel because of health concerns and travel restrictions. Now there are new worries about the soaring cost of travel and its impact on businesses' much ballyhooed climate commitments.

Why it matters: Unlike leisure travel, which is now roaring back, business travel is at least two years from a full recovery, according to new research from Deloitte. 

Driving the news: Many companies are summoning workers back to the office after two years of remote work.

Long-delayed team meetings have been rescheduled and conferences are slowing shifting back from online to in-person events.

All of that is likely to mean a gradual uptick in corporate travel over the remainder of 2022, according to Deloitte's annual survey of 150 corporate travel managers. 

But it will be a slow recovery. Travel spending is expected to rise from about 36% of 2019 levels in the second quarter to 55% of pre-pandemic spending by the end of the year, Deloitte says.

 Travel to Europe will bounce back close to 2019 levels, but Asia and Latin America will continue to lag far behind.  

Between the lines: Companies are reassessing and reprioritizing when and why employees travel. 

Many bosses are keen to maintain the financial savings and climate benefits they saw during the pandemic when employees worked from home and corporate travel was limited.

Three in 10 companies expect sustainability to cause a 11%–25% reduction in travel budgets by 2025. 

Plus, there are risks that could depress business travel, including new COVID-19 variants and the war in Ukraine.

Corporate travel recovery snagged by new concerns

First there was COVID. Now come fresh worries about the costs and climate impact of business travel.

Rivian, the most promising automotive startup since Tesla, has exquisite timing: It's ramping up production of game-changing electric pickup trucks and delivery vans just as gas prices are soaring and people are looking for alternatives to fossil fuels.

Yes, but: Rivian's vehicles are also launching into the teeth of unprecedented, industrywide supply chain disruptions that could delay or derail the company's ambitious growth plans.

Why it matters: Whether his timing is perfect, or terrible, Rivian CEO RJ Scaringe's challenge is getting a new electric vehicle brand off the ground while supplying 100,000 promised delivery vans to his company's largest customer and one of its biggest shareholders — Amazon.

Already, Rivian has conceded that its inexperience is hurting efforts to secure precious semiconductors. 

The microchip shortage, along with other supply-chain constraints, prompted Rivian to cut its 2022 production targets in half, to just 25,000 vehicles.

The 39-year-old Scaringe, heralded in a 2020 Forbes cover story as Elon Musk's new nemesis, is getting a taste of the kinds of growing pains that the Tesla CEO famously lamented as "production hell."

The big picture: Manufacturing glitches can make new model launches treacherous for any carmaker, especially an inexperienced startup.

Rivian's challenge is even steeper: it's trying to launch four models almost simultaneously — a pickup, an SUV and two delivery vans.

Scaringe seemed to take all these pressures in stride last week, however, as he drove me in a golf cart around Rivian's 3.4-million-square-foot assembly plant in Normal, Illinois — formerly home to a joint venture between Chrysler and Mitsubishi.

Details: With the flat brim of his Rivian cap pulled low, Scaringe frequently leapt off the cart to offer a closer look at the company's expanding manufacturing operations:

The six giant stamping presses where aluminum and steel parts are loudly formed.

The automated body shop where scores of robots weld, rivet and glue auto parts together.

The pristine paint shop, where trucks and vans do somersaults through a series of giant paint baths.

The final assembly area, split in two — one line for Rivian trucks and SUVs, another for Amazon's vans — where items like seats, dashboards and steering wheels are added.

The supply chain challenges of the past year have been more pronounced than he expected, Scaringe says, acknowledging some frustration: "We have a plant with 5,000 people but we need the parts here to support it."

Microchip manufacturers are allocating shipments based on their customers' historical production volumes, he said. That hurts Rivian, which only recently started manufacturing vehicles.

"I’m on the phone with semiconductor supplier CEOs every day," he says, trying to convince them Rivian will produce the number of vehicles it says it will. 

"It's a day-in, day-out battle for allocation and the number we get is precisely equal to the number of vehicles we build."

The intrigue: Rivian's inexperience may be a disadvantage now, but Scaringe is looking to establish a track record that will secure long-term partnerships with critical EV component makers. 

"Suppliers are trying to figure out who are going to be the dominant players 10 years from now, so they want to build relationships [with companies] that are going to represent significant slices of market share," he explains.

"A year ago, we were less proven. Today, we’re at the very top of the list, and where we're not at the top, we’re working very hard to get there."

The bottom line: Rivian delivered a grand total of 920 vehicles in 2021 and has 83,000 customer "pre-orders" in hand. 

It's not clear how patient those customers will be, given that other electric pickups from GM and Ford are hitting the market now.

Meanwhile, Amazon, an expert in fast delivery, is still waiting for its vans. 

Rivian opportunity at risk

Electric truck manufacturer battles against supply chain problems to meet soaring EV demand

Image of Amazon electric delivery vans coming off the assembly line at Rivian's factory in Illinois. 

Amazon electric delivery vans coming off the assembly line at Rivian's factory in Illinois. Photo: Joann Muller/Axios

Rivian

Electric vehicles

Auto shows are back after a two-year pandemic hiatus, but these days they're focused less on gleaming new models and more on educating consumers about the electric future. 

Why it matters: Consumers face a steep learning curve when it comes to electric vehicles, and so far, carmakers and their dealers have done a lousy job explaining important issues like battery efficiency, driving range and charging.

Driving the news: The New York International Auto Show, postponed four times since April 2020, finally opens to the public this weekend.

There are fewer splashy displays than in past years, with many brands skipping the show altogether.

But there's also a much bigger emphasis on vehicle electrification and charging, with several opportunities for consumers to ride in an EV on indoor test tracks.

For many people, it's likely to be their first hands-on experience with an electric vehicle. 

What they're saying: "If you haven't been paying attention to cars for the past five years, there's a lot more to learn," IHS Markit analyst Stephanie Brinley tells Axios. 

Besides new electric power trains, cars are also loaded with new assisted-driving technologies that will take some getting used to, she said.

A lot of people are curious about EVs, but to help speed adoption, companies need to ease their anxieties about going all-electric, said Steve Center, chief operating officer of Kia America. "This is where people get their questions answered."

Details: Almost the entire lower level of the Jacob K. Javits Convention Center is dedicated to electric vehicles and charging. 

On the indoor test track, visitors can ride shotgun with professional drivers in new EVs from Chevrolet, Kia, Nissan, Volvo and EV startups INDI and VinFast. (The visitors aren't allowed to drive the cars themselves.)

Ford and Hyundai have incorporated short EV test tracks into their own displays.

There's even a micromobility track dedicated to trying out e-bikes and e-scooters.

A number of charging companies also have informational displays about charging.

Among them is Gravity Mobility, developer of a high-powered, urban fast-charger for cramped public garages. Its first 24-plug charging hub is opening this spring in midtown Manhattan.

The big picture: Carmakers still make most of their profit from gasoline-powered automobiles, but most of their investments are going toward battery-electric vehicles.

That makes auto shows particularly awkward, as companies try to keep the excitement going for their conventional cars while attempting to lure shoppers into the future.

What to watch: "There’s no question that 2035 or 2040 is going to be all-electric, without a doubt," says Bob Carter, executive vice president of sales for Toyota Motor North America. "The question is, how long is the transition period going to take? Is it a three-year transition or a 15-year transition?"

Toyota is betting on a longer transition, which is why it's still promoting a full lineup of hybrids and plug-in hybrids for people who aren't ready to take the all-electric plunge.

The bottom line: Auto shows have always been about peering into the future, never more so than now, on the cusp of an electric revolution. 

Auto shows tackle steep learning curve on EVs

Some visitors will be riding in one for the first time.

The electric vehicle test track at the New York auto show. 

Consumers will be able to ride in half a dozen electric vehicles on an indoor test track at the New York Auto Show, which opens this weekend at the Javits Center. Photo: Joann Muller

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