El Al has asked an airline industry lobby group to help it access Saudi Arabian airspace, so it can compete with Air India’s planned route between India and Israel. The request came in a letter Wednesday from El Al’s CE to the IATA, in which he said he has also approached Israel’s prime minister. Saudi Arabia does not recognise Israel though there has been a thawing of the relationship between the US allies, with a shared concern over Iranian influence in the region. Granting an Israeli airline access to its air space by lifting a 70-year-old ban, however, would mark a dramatic diplomatic shift. The appeal is a response to plans revealed by Air India last month to begin direct flights to Tel Aviv which pass through Saudi airspace, a shorter route so far off-limits to all Israel-bound commercial planes. There has been no official announcement whether Air India has received permission to fly over Saudi soil for its proposed thrice-weekly flights. El Al’s CEO has now turned to the head of IATA, Alexandre de Juniac, saying he understood no such permission would be granted to Israeli jetliners and asking Juniac to step in to prevent “an uneven playing field.” “I am approaching you and kindly requesting IATA to intervene and to represent aviation industry’s interest by advocating equal overfly rights for all carriers over the Kingdom of Saudi Arabia and opposing any form of discrimination,” CEO Gonen Usishkin wrote. Usishkin said he has also requested help from Israeli PM Benjamin Netanyahu to resolve the issue. El Al has yet to receive a response.<br/>
unaligned
AirAsia said Thursday it has agreed to sell its aircraft leasing operations for $1.18b to firms managed by BBAM Limited Partnership. The sale gives Asia Aviation Capital Ltd, a wholly owned subsidiary of AirAsia Berhad, an enterprise value of $2.85b, AirAsia said. Fly Leasing Ltd, Incline B Aviation Ltd Partnership and Nomura Babcock and Brown will acquire a portfolio of 84 aircraft and 14 engines of which 79 Aircraft and 14 engines will be leased back to AirAsia and its affiliates. AirAsia is expected to recognise a gain of approximately 967.1m ringgit ($246m) as a result of the leasing unit disposal, the statement said. <br/>
Vietnam low-cost carrier VietJet Air will make a decision on whether to obtain widebody aircraft by the end of 2018. The carrier, which operates narrowbody aircraft mainly on domestic routes, is considering three options, says carrier vice president Nguyen Thi Thuy Binh. These are the Boeing 787, Airbus A330neo, and the A350. "We are near a conclusion," says Nguyen. "This year we will decide yes or no. We've taken a long time to study this model, and we're being very careful about the cost efficiencies of widebodies. This year we will make a conclusion." For several years, VietJet executives have flirted with the idea of using widebodies to serve the Vietnamese diaspora in the United States, Europe, and Australia. "Our advantage is that we understand Vietnamese [people], and we know what they expect," she says. "Countries where you have huge Vietnamese communities will be our future markets." Vietnam Airlines is also considering the launch of services to Los Angeles, possibly as soon as 2019. The country has no FAA category rating, precluding Vietnamese airlines from launching US services, but category 1 is expected to be granted in May.<br/>
Sriwijaya Air Group has suspended plans for an IPO, following a dismal year for Indonesia’s airlines. The privately-owned carrier was previously targeting to have its shares listed on the Indonesian Stock Exchange last May, following three consecutive years of profitability. The airline’s director of corporate planning and business development tells FlightGlobal that conditions deteriorated quickly in 2017, with oversupply and yield pressure, rising fuel prices and the weakening of the rupiah against the US dollar. These caused the carrier to post a loss for the year. “The situation was not good. Initially, we postponed plans for the IPO from May to September, but after entering into the second half, the signals were still not good,” says Jauwena. He adds that most of the work for the IPO has been done and that it is “a matter of timing” on when the listing will happen. The group had previously said that it will use proceeds from the IPO to double its fleet within three years.<br/>
Italian leisure carrier Meridiana has relaunched as Air Italy, less than two weeks after the new name was announced. The name Air Italy was already in the airline’s brand portfolio as the title of a charter operator that Sardinia-based Meridiana acquired in 2011. The former Air Italy was incorporated into Meridiana and acted as a capacity provider for the latter company. However, Air Italy has now become the name for the entire group, following its relaunch with Qatar Airways taking a 49% stake in Meridiana’s new parent company, AQA Holding. The first Air Italy flight took off at 2 a.m. local time from Milan Malpensa Airport for Zanzibar, off the coast of East Africa. The first domestic flight under the new identity left Olbia, the company’s home base in Sardinia, for Rome Fiumicino five hours later. Olbia will be the airline’s main base for short-haul services, while Malpensa will be the base for long-haul operations. The company will retain Meridiana’s IG flight prefix. Air Italy has a small fleet of around 12 Boeing 737-800s and 767-300ERs. However, these will be supplemented and replaced by 737 MAX 8s and Airbus A330-200s that will arrive via Qatar Airways on leasing arrangements. The A330s will, in turn, be replaced later by Boeing 787-8s, ordered by Qatar Airways but destined for Air Italy.<br/>
Iceland’s flag carrier Icelandair has taken delivery of its first Boeing 737 MAX, as it embarks on a fleet expansion program. The Icelandic airline is seeking to renew and grow its fleet to help enhance transatlantic operations at a time of increasing competition. Along with legacy carriers on the profitable oceanic sector, Icelandair is facing the rapidly expanding presence of LCCs such as Norwegian and fellow Icelandic carrier WOW Air. Icelandair, a long-time user of the Boeing 757 with more than 20 in its fleet, is taking 16 737 MAXs, in a mix of -8 and -9 variants until 2021. The aircraft will replace some of the 757s, but will also be used to expand the fleet and operate sectors not yet capable of handling the company’s 757s or larger 767-300s. The company has embarked on a policy of launching services between what it regards as under-served European and North American destinations, operating via its Reykjavik hub. Around one-third of its transatlantic passengers break their journeys in Iceland for stopovers.<br/>