Air India's turnaround — announced by prime minister Narendra Modi in his Independence Day Speech — seems unlikely, as the carrier has reported operating loss of INR2.46b during Q1 of the current fiscal. The Q1 loss has narrowed from INR3.16b during the same period last year, it is much below the airline's expectation of making about INR900m in operating profit during Q1. In contrast, all other listed airlines in the country have made net profits during the same period on the back of lower fuel prices and rising demand for travel. The revenues during the period have increased marginally by INR1.21b. Marginal increase in revenues was a concern raised by the prime minister's Office in its first review July 6. Analysts feel that the airline has always been in turnaround mode but cannot turnaround unless the real problems are addressed. <br/>
star
The US FAA is expected to upgrade Thailand from aviation security Category 2 to Category 1 by next month, according to deputy Transport minister Ormsin Chivapruck. The FAA is not expected to have to wait until the ICAO lifts its "red flag" for the Thai aviation industry, said Ormsin Tuesday. Omsin cited Line messages he had received from Transport minister Arkhom Termpittayapaisith. "Mr Arkhom informed the meeting that he wanted THAI to resume its flights to the US, which is good news. This meeting has been successful and it's expected THAI may begin operating flights to the US in October if it's ready," said Omsin. A THAI source said the FAA's signal about the aviation security level upgrade for Thailand comes at the right time as THAI is undertaking a plan to expand its routes which include those to the US. <br/>
The Australian Competition and Consumer Commission (ACCC) has cleared the partnership between SIA and Virgin Australia for another 5 years. SIA and Virgin Australia had been seeking a 10-year extension to the partnership that was first sealed in 2011, which the ACCC denied. “In light of the ongoing evolution of services between Australia and the UK and Europe—and between Australia and Asia, including Virgin Australia’s proposed expansion of services into Asia, and the dynamic nature of the aviation industry—the ACCC considers it appropriate to review the authorisation earlier than the requested 10 years. For this reason, the ACCC has decided to grant authorisation for 5 years,” the ACCC said in a final ruling. The ACCC said the partnership has resulted in “material public benefits”. <br/>
A proposed class action lawsuit alleges that Air Canada and WestJet "colluded to fix the price" and introduce a charge for a first checked bag fee within days of each other. In 2014, both Air Canada and WestJet introduced a C$25 charge for the first piece of checked luggage for economy passengers on domestic and other flights within North America. The case will only proceed if it is certified by the Saskatchewan court. A lawyer for the plaintiff alleges the country's two largest airlines "colluded," claiming WestJet publicly announced its checked bag fee plans as a way to invite Air Canada to follow along, which it did. The collusion argument, however, doesn't fly with one aviation analyst. He believes Air Canada simply reacted quickly to WestJet's news and says that's the way many industries operate. <br/>