Japan and Nepal agreed Wednesday to allow state-run Nepal Airlines to resume flights between the two Asian nations. The agreement was signed Wednesday at the beginning of a two-day visit to Nepal by Japanese Foreign Minister Taro Kono. No Japanese airlines fly to Nepal, and Japanese tourists who visit Nepal and Nepalese students and workers who travel to Japan have been forced to take indirect flights. Nepal Airlines discontinued its flights to Japan several years ago because it did not have enough planes and officials were involved in financial irregularities. "I hope the Nepal Airlines direct flights to Japan will begin at the earliest, for which we will extend all our cooperation to the Nepal government," Kono said.<br/>
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A union representing pilots at Virgin Atlantic is attempting to overturn a court injunction won by the UK carrier last month, which prevented industrial action from taking place in the run-up to Christmas. The Professional Pilots’ Union (PPU), which represents about 30% of Virgin Atlantic’s pilots, had planned to carry out a Dec. 22-25 strike, as well as two further four-day stoppages up to Jan. 7, to protest the airline’s refusal to recognize the UK long-haul carrier. However, Virgin won a High Court injunction Dec. 20, prohibiting the industrial action. In a Jan. 8 statement, the PPU said it had instructed its lawyers to appeal the High Court’s decision, although it remains hopeful that a resolution can be found outside the courtroom. Talks with Virgin Atlantic have been taking place at UK mediation service ACAS’ headquarters since the injunction was granted, the PPU said, “with a view to reaching agreement on recognition and the union playing a full part in negotiations over the company’s review of pilot’s terms and conditions.”<br/>
Air Baltic, the biggest customer for Airbus’ A220 jet, plans to use its latest order for the aircraft to establish a new airline elsewhere in Europe and could seek private-equity funding for the project. The Latvian company aims to deploy 30 A220s at the new carrier and replicate the model that brought it success at home, where it has established Riga as a hub for flights between Europe and central Asia, CEO Martin Gauss said. Details of the strategy will be revealed when Air Baltic firms up remaining order options for the A220 at the end of the year. The company will appoint an adviser to work on financing for the planes once the Latvian state, its biggest shareholder with an 80% stake, has settled on a new government. Seeking further funds for Air Baltic from the country and Danish minority investor Lars Thuesen remains an option, but selling a stake to a private-equity firm has emerged as a distinct possibility, Gauss said. It’s also possible that Air Baltic could sell shares to another airline, though the carrier’s scale might limit its appeal, Gauss said. Either way, the disposal of a stake could pave the way for an IPO of the Latvian carrier, with the company’s appeal enhanced by its ranking as Europe’s most punctual airline over the past five years, something that’s vital to the hub model, the CEO added.<br/>
The director of the collapsed flight-booking service Bestjet has told a meeting of the company’s creditors that he was forced to go into voluntary administration after he did not receive a promised $3.2m payment from the company’s former owners. Last week Guardian Australia reported the Queensland-based budget airfare company Bestjet had gone into voluntary administration just days before Christmas. Its collapse left travellers who booked flights through the company thousands of dollars out of pocket and desperate for answers. According to the minutes of a creditors’ meeting held last week, Bestjet owes about $7.28m to about 2,300 unsecured creditors. The company’s administrators, Pilot Partners, told the meeting they were receiving about 400 creditor inquiries each day. Bestjet’s new owner told the meeting he had been “legally obliged” to place the company into administration after a promised $3.2m payment from its Singaporean arm never materialised. Story has full background.<br/>
Philippine Airlines could close a deal to sell up to 40% of the carrier to a foreign strategic investor within H1. “We’re targeting first half of this year… up to 40% stake, that’s the maximum we can offer. As per the law, foreigners can own only up to 40%,” the carrier’s president and COO Jaime Bautista said Wednesday. In a stock exchange disclosure, PAL clarified that it has yet to reach any definitive agreement with parties that have signified interests. It adds that it has “always been receptive to possible strategic investor participation” and hence continues to review and considers proposals from various interested parties. PAL has for years been trying to secure a strategic investor to help with its next stage of growth. Bautista has however said that things have progressed slower due to the challenging operating environment. <br/>