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A deal for a large stake in Mexico’s Interjet is on hold because of the embattled airline’s tax woes, said people familiar with the matter. A group led by Carlos Cabal Peniche and Alejandro del Valle would take 90% of Interjet under a $150m pact announced in July, El Financiero newspaper reported Wednesday. But the new investors have yet to provide the funds out of fear that the government would grab some of the money to cover unpaid taxes, said the people, who asked not to be named because the talks are private. The delay in the investment is clouding Interjet’s future as the carrier grapples with the coronavirus pandemic and financial woes that predate Covid-19. The company, which is controlled by the descendants of a Mexican president, abruptly canceled service on Sunday, saying the disruptions were due to aircraft maintenance and the coronavirus pandemic. Flights resumed Tuesday. ABC Aerolineas SA, Interjet’s full name, declined to comment. The carrier’s fleet is down to six Russian-made Sukhoi Superjets, according to Flightradar24. Most of the carrier’s Airbus planes were repossessed by lessors earlier this year.<br/>

Wizz Air is sticking to its ambitious expansion plans despite the collapse in air travel as the bullish low-cost carrier positions itself for a recovery in passenger numbers next year. The Hungarian airline’s CE Jozsef Varadi said that while he was preparing for a “difficult” winter dominated by travel restrictions, he expected demand for flying to return by the beginning of April. “Coming out of winter and going into spring we will start seeing some improvements,” he said. “We will see demand coming up quickly and strongly.” Wizz has announced plans to open 13 bases including at London Gatwick and Doncaster Sheffield airports since April, betting that it can exploit the crisis to raise its footprint across European airports while rivals retrench. “Many of the existing carriers will have a hard task to revamp their operations, it will take them ages and some will never get there,” Varadi said. The airline is pushing for European aviation authorities to reinstate “use it or lose it” slot rules that strip airlines from lucrative landing rights if they do not fly their planned schedules. The rules have been suspended until next year to stop carriers having to operate empty flights to defend their slots, in a move welcomed by the majority of the airline industry. But Varadi said the suspension had stopped him from a “significant investment” in London’s struggling Gatwick. Given free rein to hoover up slots, he said Wizz could eventually operate 15 to 20 aircraft from the airport, up from just one currently. Despite the bullish tone, Wizz is not immune to the struggles facing the industry. The carrier has had to slash its flight plans for the winter like its competitors, and sank to a E237m loss before tax for the six months to September 30. The company made E385m in profit for the same period last year.<br/>

Wizz Airsaid the former CFO of BA-owner had joined its board, the latest sign of the Hungary-based low cost airline's bid to move into the top tier of European airlines. Wizz said that Enrique Dupuy de Lome Chavarri, who was IAG CFO from the founding of the group in 2011 to 2019, joined the Wizz board with effect from Wednesday. Wizz's chairman said he was delighted with the appointment. "His broad industry experience and personal network will be valuable to Wizz Air as the company expands across Europe," Chairman William A. Franke said. Having expanded into western Europe from its eastern European base in recent years, low-cost carrier Wizz has so far withstood the pandemic better than some larger competitors, continuing to add new routes and take delivery of new aircraft.<br/>

EasyJet has opened talks with the Germany and other European governments to secure state aid. The Luton-headquartered carrier, one of the biggest operators in Germany, is holding “constructive talks” with officials in Berlin, boss Johan Lundgren has revealed. The airline said the talks were part of a number of negotiations with governments on the Continent. Lundgren told German magazine Wirtschaftswoche: "The talks are proceeding constructively.” The publication said discussions with German ministers were "apparently about several hundred millions of euros", though Lundgren declined to specify exact figures. The discussions follow a plea from Lundgren to the UK Government a month ago to provide financial support. The request to Whitehall was made before Boris Johnson banned non-essential travel with the introduction of a second lockdown. In October he said UK taxpayer support for airlines and airports was "far off what other European countries have been doing". EasyJet insiders confirmed that German talks were ongoing but insisted that it was over a "low figure". The airline has already tapped shareholders and lenders for additional investment and cut more than 4,000 jobs to preserve cash. But the second lockdown is likely to put fresh strain on the finances of the FTSE 250 company.<br/>

IndiGo, India’s biggest airline, is in talks with Pratt & Whitney and CFM International for its next batch of jet engine orders, according to people familiar with the matter, a rare sign of dealmaking in a sector that’s been paralyzed by the virus pandemic. The discussions with the rival manufacturers relate to engines that would power about 150 new Airbus SE A320neo jets, the people said, asking not to be identified because the negotiations are private. Talks are preliminary and there’s no timeline on when any agreement may be reached, the people said. Based on the size of IndiGo’s last engine order -- a $20b transaction with CFM that covered 280 planes and was the largest engine order in history -- the new agreement could be worth around $10.7b, including service, repair, and maintenance. The pandemic presents a unique opportunity, however, for IndiGo to potentially bargain with the engine makers, both of which it now counts as suppliers. “This is the perfect time to engage given the overall market conditions and state of competitors -- both of which will enable Indigo to get very lucrative deals,” said Satyendra Pandey, a partner at New Delhi-based advisory AT-TV and a former head of strategy for Go Airlines India. “As this selection is for the remaining aircraft, it involves the long-term performance and cost forecasts.” A representative for IndiGo declined to comment. Operated by InterGlobe Aviation, IndiGo is the world’s biggest customer for jets in the A320neo family, with as many as 730 on order. The airline has yet to decide the engine type for the 300 that would be outstanding.<br/>

Lufthansa Group foresees that Eurowings will operate no more than seven long-haul aircraft in 2021 amid plans for the low-cost subsidiary’s intercontinental operations to be consolidated in new unit Ocean. Prior to the crisis, some 14 long-haul jets – mainly Airbus A330s, but also A340s – were operated under the Eurowings brand. These included Brussels Airlines aircraft and seven A330s operated by the German arm of SunExpress, the leisure carrier jointly owned by Lufthansa and Turkish Airlines. SunExpress in June disclosed a decision to dissolve its German operation. Lufthansa Group CE Carsten Spohr said during a Thursday results briefing that the company was “forced” to place the long aircraft under a single, new AOC, noting that this would also include long-haul aircraft at Lufthansa’s regional unit CityLine. Spohr says management is “evaluating” the possibility of consolidating the aircraft under the AOC of new standalone entity Ocean by the end of 2021. All aircraft will be operated under the Eurowings brand, he says. Until the new AOC consolidation has been completed, Brussels Airlines will most likely operate Eurowings’ long-haul aircraft – three during winter and a “maximum” seven in summer 2021. Spohr adds that the group is also considering the placement of eight Munich-based Eurowings A320s under the new AOC. Lufthansa has previously said it aims to model Ocean on group carrier Swiss’s leisure subsidiary Edelweiss, which operates a mix of narrow- and widebodies from its Zurich base. Spohr notes that Eurowings’ remit will include operation from the group’s hubs alongside bases in secondary cities.<br/>