Qatar’s state airline is set to become the biggest loser from the diplomatic breakdown in the Persian Gulf—with competitors in Dubai and Abu Dhabi also set to suffer. Some 76 daily flights are likely to be grounded, of which 52 are operated by Qatar Airways, after Saudi Arabia, Bahrain, Egypt and the United Arab Emirates suspended ties with Qatar, according to data from scheduling firm OAG. Some 30% of the carrier’s revenue could be affected, aviation analysts at Frost & Sullivan estimate. Among Qatar Airways operations set to be shut is a shuttle to Dubai that operates 14 times a day. Plans to bar Qatari jets from entering airspace over the countries that could be even more problematic, inflating expenses by forcing significant diversions and putting the viability of some routes in jeopardy. “Diverting around closed airspace means higher fuel costs and longer flight times,” said Mark Martin, head of Dubai-based Martin Consulting. “Destinations in Africa and across the Indian Ocean may no longer be sustainable as part of the Qatar Airways network.” Earnings at Qatar Air, like other Gulf carriers, are already being squeezed as the low price of crude weighs on economic growth in the region and hurts demand for travel among oil-industry executives. An American ban on people using laptops aboard U.S.-bound flights amid concern about potential terrorist attacks is also taking a toll on business-class demand. The Saudi bar on flights was to be introduced immediately Monday, with the airspace ban taking effect Tuesday. Egypt and Bahrain have also stated that overflying their territory will be denied to Qatari carriers, though the U.A.E. has indicated that its airspace will remain open. Qatar Air declined to comment, beyond saying that it has suspended Saudi services.<br/>
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Emirates Airline, Etihad Airways, Saudia, Gulf Air, flydubai and Air Arabia were among the airlines that ceased flights to Qatar, effective June 5, after Middle East states surrounding Qatar severed diplomatic links with the country and closed neighboring airspace. Doha-based Qatar Airways suspended flights to Saudi Arabia. Early Monday, Saudi Arabia, Bahrain, the United Arab Emirates (UAE) and Egypt announced they were breaking diplomatic relations with Qatar and instructed their nationals to leave the emirate within 14 days. The announcement coincided with Monday’s opening of the IATA AGM in Cancun, where the world’s airline CEOs and senior executives are gathered. Qatar Airways CEO Akbar al Baker was among those attending the event and he was seen at the AGM’s opening reception Sunday evening chatting with fellow guests and seemingly not aware of the imminent crisis. On Monday morning, he left Cancun on a private business jet, several other airline executives attending the AGM told ATW. “This new scenario also means that Qatar Airways will have to do a lot of detour flights because it will be not allowed to fly over those countries like Saudi Arabia,” one executive said. IATA director general and CEO Alexandre de Juniac responded, “We are not in favor of bans and we would like to see connectivity restored as soon as possible.”<br/>
Jet Airways India is in talks to buy 50 single-aisle jets worth at least $5.6b, a person with direct knowledge of the plan said, pitting the largest Boeing 737 Max against Airbus SE’s A321neo. The 737 Max is considered the front-runner at the airline, the person said, asking not to be identified as the discussions are confidential. The carrier, India’s biggest full-service airline, operates an all-Boeing narrow-body fleet and already has an order for the Max 8, the most popular of the planemaker’s revamped 737 models. Jet Airways is studying two Boeing models: the high-density Max 200, favored by European budget carrier Ryanair Holdings Plc, as well as the Max 10, a stretched version Boeing may introduce in Paris this month, the person said. The airline could sign the deal in the next two months for deliveries starting 2024, the person said. Jet Airways continuously reviews its fleet in response to demand, but won’t comment on speculation, a spokesman said by email.<br/>
Indonesian budget carrier Lion Air may be a launch customer for the Boeing 737 MAX 10, a larger version of the planemaker's medium-haul family that is expected to be launched at the Paris Airshow, three people familiar with the plans said. The order may, however, include some upgrades from a smaller model, two of them said. The two companies declined to comment. Indian budget carrier SpiceJet is also among carriers seen as potential targets for the aircraft, a version designed to seat up to 230 people and blunt strong sales of the Airbus A321neo, two of the sources said. Lion Air, which is one of Boeing's largest customers, ordered 201 Boeing 737 MAX aircraft in 2012 and placed options for a further 150. Such orders typically include the right to convert between different variants of each model. Other airlines are looking at the Boeing 737 MAX 10, but some are nervous about committing to a new variant given patchy sales of some current models of the 737 MAX, whose success rests mainly on sales of the Boeing 737 MAX 8, the sources said.<br/>
Two men have been charged with trafficking nearly 7 kilograms (15 pounds) of cocaine into Boston on a commercial airline. The US Attorney's office says Juan Luis Perez Garcia, of the Bronx, New York, and Juan Artiles Taveras, of Lakewood, New Jersey, were arrested Friday in Attleboro and charged with possession with intent to distribute cocaine. Authorities say federal agents intercepted a suitcase after it arrived in Boston from the Dominican Republic on a JetBlue Airways flight. They say the suitcase tested positive for cocaine. Authorities say the defendants met a witness and undercover officer to exchange money for the drugs and were arrested.<br/>