This week’s top air transport stories include an appeal by American Airlines after a recent ruling ordering it and JetBlue Airways to cease their Northeast Alliance (NEA) and the completion of Viasat’s acquisition of Inmarsat.
American Airlines plans to appeal the recent ruling ordering it and JetBlue Airways to cease their Northeast Alliance (NEA). A U.S. federal judge on May 19 ordered the carriers to permanently cease their agreement in 30 days, in a ruling that found the more than two-year-old alliance to be anticompetitive. JetBlue and American have maintained that their alliance is pro-consumer, creating more competition in the U.S. northeast region. The federal ruling stemmed from a U.S. Justice Department (DOJ) suit to block the arrangement.
U.S. satellite communications specialist Viasat completed its acquisition of UK-based Inmarsat, bringing together two major players in the inflight connectivity (IFC) market. Viasat announced final closure of the deal on May 31, after getting the green light from three antitrust regulators in quick succession. The UK cleared the acquisition on May 9, the U.S. followed on May 19 and the EU gave its go-ahead on May 25.
In airline news, Singapore Airlines (SIA) and Garuda Indonesia plan to enter a joint venture (JV) with the aim of increasing capacity and commercial cooperation beyond their current codeshare agreements. Pending regulatory approvals, the JV will potentially see the two flag carriers coordinate schedules between Singapore and Indonesia—primarily Singapore and Denpasar, Jakarta and Surabaya. This expands the agreement by the companies in 2021, as the new deal could see the alignment of frequent flyer programs, joint marketing activities and cooperation in air cargo as well as maintenance, repair and overhaul activities.
Lufthansa and the Italian government signed an agreement May 25 for the group to become a major shareholder of ITA Airways and eventually take full control of the airline. The deal is subject to regulatory approval by the European Commission (EC). Industry sources say an in-depth investigation is all but certain, which would delay approval and potential closing into at least the fall of 2023. Lufthansa will initially take a 41% stake in ITA and full management control, one of its most important pre-conditions for negotiations. It is paying €325 million ($350 million) for the stake and the Italian finance ministry has committed to participating in the capital increase by contributing €250 million.
Air Canada has forged a letter of intent with regional carrier PAL Airlines to operate six De Havilland Canada Dash-8 400 aircraft in what Canada’s largest airline deems a bridge arrangement driven by pilot shortages. Under the proposed deal, which remains subject to final negotiations, PAL would acquire six of the aircraft to operate on behalf of Air Canada for a six-year term.
UK-based long-haul startup Global Airlines is finalizing the purchase of its first Airbus A380 from lessor Doric Aviation for an undisclosed eight-figure sum, with three more A380 acquisitions planned over the coming months. Global Airlines aims to bring back the “golden age of air travel,” deploying four A380s on transatlantic flights beginning in spring 2024. The A380 cabin will include approximately 471 seats in a three-class configuration.
Young Icelandic airline Niceair filed for insolvency, according to local media reports. The airline, which began services in June 2022, operated not from the Nordic nation’s main airport at Keflavik, but from Akureyri, in the northern part of the island.
In sustainability news, the Dutch Labor Inspectorate ruled that Dutch airports operator Schiphol Group and eight ground handling companies must accelerate the replacement of diesel-powered ground handling equipment by the end of 2023 to protect employees from carcinogenic fumes. Staff who are may be exposed to hazardous substances must also have access to regular health checks.
A lawsuit filed by a California resident alleges Delta Air Lines misled consumers in marketing itself as “the world’s first carbon-neutral airline.” The suit—filed in a California federal court on May 30—argues that the Atlanta-based carrier “grossly misrepresent[ed] the total environmental impact of its business operations in its advertisements, corporate announcements, and promotional materials,” citing “foundational issues with the voluntary carbon offset market” in disputing representations of carbon neutrality.
South Korea has launched a research program to develop and demonstrate technology for a zero-emission 19-passenger short-haul commuter airliner with hydrogen fuel-cell power and distributed electric propulsion. Under the project, Korea Aerospace Industries (KAI) is responsible for setting the system requirements for development of the hydrogen fuel-cell hybrid power and distributed electric propulsion systems for a low-carbon, low-noise commuter aircraft.
In manufacturer news, Airbus unveiled its latest futuristic cabin-design ideas—2035+ Airspace Cabin Vision—which are focused on sustainability and include bionic design, reusable materials, more transparent passenger information and new catering concepts.
Boeing’s Charleston-area propulsion center, already growing as an aftermarket provider, is preparing to take on a larger role on 787 production by delivering ready-to-install engine “kits” to the final assembly line (FAL).
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