A Bedford-based company has made history after signing a deal to produce and deliver ten 100-passenger helium airships. The deal, concluded between Hybrid Air Vehicles (HAV) and Spanish airline AV Nostrum, is expected to create 1,800 jobs in South Yorkshire and contribute to the UK’s sustainability goals.

The Airlander 10 airships will be built at a recently constructed green manufacturing cluster in South Yorkshire and are expected to provide an employment and financial boost to the local economy.

Beyond this, the Airlander 10, which HAV says will have less than a tenth of the carbon footprint per passenger of a traditional jet plane, represents a leap forward in the race towards a cleaner and more climate-friendly aviation industry.

Responsible for roughly 3% of global emissions, the aviation industry has long been a target for a green revolution. But climate-friendly air travel has remained largely within the realms of experimentation, until now. While various options including clean aviation fuel, electric planes, and direct capture devices have all received varying levels of consideration, the industry had shown little promise of a viable and scalable option that could drastically cut C02 emissions.

However, HAV’s futuristic Airlander 10 airships can potentially move the needle on climate progress within the industry. Acknowledging the progress that the company’s deal with AV Nostrum represents, UK business secretary Kwasi Kwarteng said, “hybrid aircraft could play an important role as we transition to cleaner forms of aviation, and it is wonderful to see the UK right at the forefront of the technology’s development.”

Kwarteng also noted that the local jobs being created by the deal was just as satisfying. “It is more proof of how the UK’s businesses are embracing new technology to drive growth and support high skilled UK jobs.”

The promise of helium airships

There are many promising aspects to the Airlander 10 deal, but I believe industry players would be most interested by the multiple applications to which the aircraft may be put. HAV initially designed its airship as a surveillance and reconnaissance vehicle during intelligence missions in Afghanistan since it is less noisy than a helicopter and can stay in the air far longer. But it also has interesting applications in commercial travel.

With a 400km range and a rigid body that can land or lift off from any surface, the craft does not need a runway or pressurized cabins. Therefore, airship stations can be more space-efficient, while the aircraft itself can provide more windows and cabin space for passengers. According to Rebecca Zeitlin Head of Marketing and Communications at HAV, the Airlander 10 presents a more enjoyable, and potentially more luxurious, passenger experience. She says that “every seat will be a little bit like a business class experience. The whole experience will be more restful.”

Helium airships can also make an impact in disaster relief operations, such as combatting wildfires and effecting evacuations during emergency situations like tsunamis, flooding, industrial accidents, and earthquakes. The craft can carry more than 200 people per trip and potentially delivers four times the amount of water – up to 300 tons per day – traditional firefighting planes carry.

I think there’s a lot to anticipate from the blossoming rigid airship industry in the coming years. It would be to see how the aircraft performs in real life situations, and with AV Nostrum set to take delivery of its Airlander 10 airships by 2026, we may not have long to wait before we get to see them in action.

Amid sharply rising global energy and food prices, inflation has threatened to spiral out of control worldwide, and this is prompting concerted action from major central banks. With inflation hitting multi-decade highs in most economies, central banks are responding by hiking interest rates at a similarly record-breaking pace.

For instance, the Bank of England recently effected its largest rate increase in 27 years, and the previously “dovish” European Central Bank raised interest rates for the first time in 11 years, bidding farewell to a “long chapter of negative rates.”

However, despite the increased synchronicity of central bank measures worldwide, there continue to be outliers. Japan, for instance, has chosen not to implement a rate hike – instead, the country is focused on protecting its currency against a surging dollar. Likewise, even in countries where interest rates have risen, central banks have acted uniquely and with varying levels of urgency. Below, I take a closer look at how major banks in different regions are responding to inflationary pressures below, why they’re raising rates, and what they’re doing differently.

Rising interest rates

Inflation has been a key topic in economic discourse since mid-2021. Even before the cost-pushing trends caused by the conflict in Ukraine, there were strong signals that central banks would shortly act to reverse the quantitative easing measures implemented to prop economies up against COVID.

Now, with record inflation rates, banks are acting to put the brakes on and prevent entrenched inflationary pressures. By raising interest rates, they increase the cost of borrowing and this in turn reduces the purchasing power of consumers. With less purchasing power, demand for many goods and services should fall, ultimately resulting in lower prices.

As the IMF notes, central banks in emerging markets were the first to start hiking rates in 2021, before being followed by their counterparts in advanced countries. In a roundup of recent rate increases, Reuters reporting indicates that the US lifted rates by 75 bps on September 21 – and projections indicate more planned hikes, potentially bumping rates up to 4.4% by year-end.

The Bank of Canada has also aggressively tightened monetary policy, raising its policy rate to 3.25% – including a 100 bps raise at one point. There are further plans to raise policy rate by 50 bps to 3.75% in October. Meanwhile, the Bank of England has taken a more measured approach, delivering a 50 bps hike on September 22 – less than the 75 bps expected in the market. Nevertheless, money markets see sharper rate hikes on the horizon, with projections of a policy rate of 4.9% by June 2023.

Norway was the first major economy to start hiking rates in 2021, and on September 22 another 50 bps increase brought the country’s policy rate to 2.25%. Likewise, the Reserve Bank of Australia hiked rates for the fifth month in a row, delivering a seven-year high 2.35% policy rate.

Rate hiking action has been slower elsewhere, with Switzerland and the EU playing catch up. The Swiss National Bank only entered positive rates in September, with a 75 bps hike to 0.5% in its second rate increase this cycle. Similarly, the European Central Bank implemented a 75 bps hike in September, raising deposit rates to 0.75% while refinancing rates were up to 1.25% in the highest increase since 2011. Further hikes are likely, with the ECB signaling that rate rises may well continue into 2023.

Recession fears and deflation concerns

While conventional wisdom suggests that targeted rate hikes can help control inflation, central banks are wary of overshooting their inflation targets. As Euronews notes, “aggressive monetary policy is a tightrope walk: making money more expensive can slow down growth, weaken salaries, and foster unemployment.”