The US on Wednesday imposed sanctions on two United Arab Emirates-based companies, the US Treasury Department said, accusing them of providing material support to Iranian airline Mahan Air. The Treasury said Parthia Cargo and Delta Parts Supply FZC provided key parts and logistics services for Mahan Air, which is blacklisted under US measures to fight terrorism and proliferators of weapons of mass destruction. The Treasury also slapped sanctions on Amin Mahdavi, a UAE-based Iranian national, for owning or controlling Parthia Cargo. The administration of US President Donald Trump plans this week to push for a reimposition of all UN sanctions on Iran, after the UN Security Council rejected Washington’s earlier bid to extend an arms embargo on the country. “The Iranian regime uses Mahan Air as a tool to spread its destabilizing agenda around the world, including to the corrupt regimes in Syria and Venezuela,” Treasury Secretary Steven Mnuchin said. “The United States will continue to take action against those supporting this airline,” he added. Wednesday’s action freezes any US assets of those blacklisted and generally bars Americans from dealing with them.<br/>
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Southwest said Wednesday it expects cash burn in Q3 to slow as bookings improve modestly for August and September, even as demand remains choppy due to the coronavirus crisis, forcing the carrier to cut back its flight schedule. An improvement in bookings had stalled in early July and they remained depressed throughout the month due to a rise in COVID-19 cases, Southwest added. Shares of the carrier rose more than 3% in premarket trade after the company forecast lower current-quarter cash burn of about $20m per day, compared with its prior estimate of about $23m per day. Southwest, which has one of the strongest financial positions among US airlines, said it has decided to not participate in a US government secured loan program as it had taken actions to boost liquidity, and could secure additional financing at favorable terms, if needed. The company said its Q3 capacity would likely slump between 30% and 35%, compared with its prior expectation of a 20% to 30% drop, with October capacity expected to decrease in the 40% to 50% range, year over year. Southwest now expects August 2020 operating revenue to fall between 70% and 75% from a year earlier, compared with its earlier estimate of a decline of 70% to 80%.<br/>
Boeing broke its order drought for the grounded 737 Max, booking its first new sale of the model this year in a two-jet deal with Poland’s largest charter carrier. Enter Air also added an option to take two additional 737-8 planes, which if exercised would bring its Max fleet to 10 aircraft, Boeing said in a statement Wednesday. The charter company, which began operations with a single 737 jet a decade ago, now has a fleet of 24 of the Boeing single-aisle planes, including two Max. The latest order is a rare win for Boeing as the company confronts collapsing demand for new jetliners in a market glutted with aircraft because of the coronavirus pandemic. Airlines and lessors are also still waiting for global regulators to end a flying ban on the Max that was imposed in March 2019 after two deadly accidents. Enter Air has finalized a settlement for the “commercial impacts” it suffered from the Max’s grounding, according to the statement. The compensation will be provided in a “number of forms and staggered over a period of time,” Boeing said. Federal officials are expected to certify the Max to resume flight in Q4 if no new issues emerge.<br/>
Icelandair’s new collective agreements with aircrew means pilots and flight attendants will work closer to theoretical maximum limits, and enable the airline to explore new network prospects. International regulations restrict pilots and cabin crew from operating more than 900 block hours per year. Icelandair says that, given the structure of its network and taking into account training and sick days, the theoretical maximum for its pilots is about 725h. But the airline adds that its pilots have actually been flying some 525h per year. The collective agreement recently signed with the Icelandic cockpit union FIA increases this level by 22%, to some 640h – closer to the top limit, improving productivity. Icelandair says the remaining gap is primarily the result of the airline’s “continuing to adhere to Icelandic labour market conventions”, in relation to such aspects as sick leave and days off. It says the new agreement, which runs to the end of September 2025, relaxes duty-time and rest clauses and reduces vacation days.<br/>
South Korean budget carrier Eastar Jet is seeking new investors to avoid liquidation after losing its earlier suitor Jeju Air last month. The airline has recruited accounting firm Deloitte Korea, law firm Yulchon, and Heungkuk Securities to tap new M&A candidates, according to industry sources on Tuesday. A Heungkuk Securities official said due diligence would take place within the next two weeks, after which the advisory team would devise a strategy based on the status quo of the troubled budget carrier. Once the M&A proposal is outlined, the airline will file for court management to lead the sale. Jeju Air walked away from its offer to buy the smaller carrier in late July as global air traffic has come to a virtual standstill by the coronavirus pandemic. Two private equity firms are said to be interested in Eastar Jet.<br/>