star

The EU has raised concerns over Austrian plans to set a minimum airfare, a spokesman said, weighing in on an environmental policy debate that pits traditional airlines against low-cost carriers. A minister from Austria’s Greens, the junior partner in the governing coalition, announced plans last June for an E40 minimum fare that explicitly targeted no-frills operators. The EC “expects to receive more detailed information from the Austrian authorities on the precise content of the envisaged measures,” the spokesman for the EC said Wednesday. Faced with pressure for higher airline taxes to curb greenhouse gas emissions, flag carriers like Lufthansa and Air France-KLM have argued instead for minimum fares that could all but abolish much of the low-cost market. Austria unveiled its proposal after granting E600m in aid to Lufthansa-owned Austrian Airlines. But a “pricing freedom” provision within the EU’s main 2008 air services regulation states that airlines “shall freely set air fares” for flights within the bloc.<br/>

South African Airways may exit administration later this month and a decision on an equity partner for it could be made by the end of March, the ministry responsible for the state-owned airline said Wednesday. SAA has been under a local form of bankruptcy protection since December 2019, and its longstanding financial woes worsened during the COVID-19 pandemic. It suspended all operations around the end of September. The Department of Public Enterprises (DPE) said at a virtual meeting of a parliamentary committee that the remainder of a 10.5b rand ($702.4m) bailout could flow to the airline now an appropriation act had been passed. So far 2.8b rand of the bailout has been transferred to SAA, the department’s presentation showed. “We are expecting that during the course of this month the business rescue practitioners should be exiting the business,” DPE Director-General Kgathatso Tlhakudi said.<br/>

In order to avoid Air India having its assets seized in a long-running corporate tax case between the Indian government and Cairn Energy over a US$1.2b award, Delhi is considering giving away some of its oilfields, sources told the Business Standard newspaper on January 31. Last week, the Edinburgh-based energy firm threatened to seize Indian state assets following the award for damages in a December 2020 ruling at the Permanent Court of Arbitration in The Hague, with possible targets including those owned by public-sector enterprises such as Air India. Sources told the BBC that Cairn had started identifying assets it could seize if India did not comply and that these could include ships as well as aircraft. Cairn Energy filed the case after income tax officials seized its 10% stake in Cairn India in 2014 following a corporate reorganisation. The tribunal in The Hague ruled unanimously that Delhi had violated the UK-India bilateral investment treaty, ordering the government to immediately pay the award plus interest and costs. The government has so far given no indication as to whether it intends to honour the verdict.<br/>

United is conducting a closed global review of its creative business. Dentsumcgarrybowen, formerly Mcgarrybowen, is the incumbent. The agency has been invited to participate. The move comes as United, like its competitors, suffers from massive dips in travel due to Covid-19. Scott Kirby, the airline’s CEO, wants to make Covid-19 vaccines mandatory for the company’s employees. In May, United partnered with Clorox on a “CleanPlus” program that the company said seeks to redefine its “cleaning and disinfection procedures.” The partnership also involves input from the Cleveland Clinic. “The last year represents the most sustained, seismic disruption in the history of commercial aviation. Throughout the pandemic, United has been at the forefront of the industry in delivering on safety, innovation and customer experience,” a spokesperson said. “Now, as vaccine distribution picks up across the US and around the world, we are focused on positioning the airline for a strong recovery that will allow United to fulfill our potential and emerge as the global leader in aviation,” the spokesperson continued. “As part of that, we are reviewing many of our critical partner relationships, including our creative agency, which will be key to helping us build an enduring creative platform that continues to strengthen our brand narrative.”<br/>

Air New Zealand has re-opened its Wellington regional lounge on weekdays for the first time since the pandemic. Alison Swarbrick, the airline's senior manager of global lounges and valet, announced the move which she said was to accommodate strong domestic demand. The Wellington domestic lounge is open as usual on weekends and public holidays. "It's great to see Kiwis travel their own country and we're pleased to be open again," she said. Wellington Airport CE Steve Sanderson says domestic passenger numbers are picking up again. "Our regular travellers will arrive and depart from the gates they were used to pre-Covid. They will also be able to enjoy more regular terminal entertainment and faster security screening following the rollout of new smart lanes by Aviation Security at the end of last year." Air New Zealand reported an after-tax loss of $454m for the year ended June 30, 2020, down on the previous year's $276m profit. It expected to operate at around 80% of its pre-Covid capacity in January and February.<br/>

Copa Airlines and the IATA will partner to trial the IATA Travel Pass in Latin America, starting in March. The Panamanian carrier will be the first to introduce IATA’s mobile app in the Americas. IATA’s Travel Pass will effectively act as a ‘digital passport’ for travelers. It is the airline industry’s latest tool to fight against the spread of COVID-19, said Akbar Al Baker, Qatar’s CEO, last month. The digital passport will allow passengers to match their travel itineraries with their destination’s COVID-19 health requirements and validate that they comply with these. It will “simplify and enhance compliance with health requirements for our passengers. An international standard solution for digital health passports holds the key to the safe restart of the travel and tourism industry,” said Dan Gunn, Copa’s Senior VP for operations. Copa Airlines is barely just restarting its operations after months grounded. Ivan Eskildsen, the administrator of the Panama Tourism Authority, said, “The Government of Panama supports the implementation of this important tool developed by IATA that, through its integration with different stakeholders, will allow passengers to comply with our health requirements, thus restoring confidence in travel and tourism, important pillars for the country’s economic recovery.” <br/>