A top court has ruled that measures introduced by France and Sweden to help some airlines weather the fallout of coronavirus restrictions are compatible with EU law, dealing a major blow to low-cost carrier Ryanair which challenged them as unfair. The General Court of the European Union handed down two decisions Wednesday. It said a system introduced by France to defer tax payments for airlines holding a French operating license “does not constitute discrimination.” The Luxembourg-based court also ruled that a loan guarantee scheme put in place last year by Sweden to support airlines with a Swedish operating license “is presumed to have been adopted in the interest of the European Union.” The EU’s executive arm, the European Commission, which polices state aid and other competition issues, approved the two plans last year, weeks after the pandemic began spreading throughout Europe and border closures and other restrictions hit air travel. Ryanair which says it was transporting around 149m passengers a year before the coronavirus hit, went to court to have that approval annulled, arguing that the schemes constitute unfair state aid bailouts for national carriers.<br/>
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TUI became the first company in Europe to begin flying passenger services with the revised Boeing Co. 737 Max jet, kicking off with a trip from Brussels to Malaga in Spain earlier on Wednesday. The leisure group conducted readiness tests for its Max jets and plans to operate the aircraft type from the Belgian capital on a weekly basis, a spokesman said by email. The first flight, which departed at about 9:40 a.m. local time, used a Belgian-registered 737 Max 8 that the carrier received in 2018, according to plane-tracking website radarbox.com. The EASA last month cleared the Max to resume flying, a major step in the narrow-body’s global rehabilitation after two fatal crashes led to its grounding in March 2019. <br/>
WestJet says it has hired its first chief medical officer. Dr. Tammy McKnight will be charged with developing and implementing initiatives related to the health and well-being of WestJet's employees and customers, the company says. WestJet says Dr. McKnight will work on mental health-related efforts, advise on risk mitigation and make recommendations around complying with health guidelines around the world. The portfolio was previously spread among various service providers and company staff, WestJet says. The appointment comes as airlines navigate a complicated atmosphere of public health regulations and protocols designed to curb the spread of COVID-19.<br/>
Uzbek start-up carrier Qanot Sharq Airlines is taking a pair of Airbus A320s for its initial fleet, acquired from US lessor Air Lease. Qanot Sharq is based in Tashkent, the capital of Uzbekistan. At the MAKS Moscow air show in 2019, the airline signed an agreement – described as “soft” by United Aircraft – for the supply of three Sukhoi Superjet 100s. But Air Lease says it has reached agreement to place two used A320s on a long-term contract with the carrier. “These will be the first two aircraft in the fleet of the Uzbek start-up airline,” it adds. The lessor has not identified the specific airframes. Qanot Sharq owner Nosir Abdugafarov says both aircraft are due to be delivered in March, and will ensure the “highest standard of safety and comfort” for the new carrier’s passengers.<br/>
Cebu Pacific has finalised details of its planned Ps12.5b ($258m) rights offering, aimed at providing the Philippine low-cost carrier with funds to repay debts – including those owed to lessors – and ensuring it has sufficient funds to refund passengers. It plans to offer 329m convertible preferred shares with a par value of Ps1 per share and priced at Ps38 per share, according to a 16 February filing with the Philippine Stock Exchange. The dividend yield is 6% per year, although as with common shareholders, companies can also suspend dividend payments to holders of preference shares. Cebu’s shareholders are entitled to one convertible share for every 1.83 common shares held as of 26 February. The offer period opens on 3 March and closes on 9 March. Within its span, the airline’s shareholders can exercise their rights to purchase the convertible preferred shares, ignore those rights, or sell their rights. The tentative issue date is 29 March. Cebu says it will use the proceeds to strengthen its balance sheet by providing liquidity to address financial liabilities.<br/>
South Korean budget carrier Eastar Jet under court management is expected to resume its flight services as early as in June amid progress in M&A endeavors after the collapse in its sale to bigger peer Jeju Air. According to industry sources on Thursday, Eastar Jet is engaged in negotiations with multiple stalking-horse bidders and may come to choose one by May 20 to receive an endorsement for its rehabilitation scheme from the bankruptcy court. In stalking horse bids, low-end price is preset to ensure a fair deal for a company in distress. Four candidates initially showed interest in Eastar Jet after the collapse of the deal with Jeju Air, but two to three more have entered the race later after the budget airline was placed under the court protection. Because existing large shareholders’ ownership could be reduced under court management, the company’s value has become cheaper to add to the appeal.<br/>
AirAsia food, budget carrier AirAsia's delivery service, is looking to spread its wings and start operations in Singapore. AirAsia's CE Tony Fernandes said Wednesday that his company's latest venture will be coming to "Singapore with a roar", although he did not specify when. The food delivery service started almost a year ago and was reportedly gearing up for operations in major Malaysian cities. Coming to Singapore would be its first overseas foray. "As a disruptive leader, we're ready to take on the new challenge in Singapore, providing value, simplicity and inclusivity for everyone," he said. Fernandes also mentioned that parties interested in becoming a merchant with AirAsia food could already sign up with the company via e-mail. AirAsia food officially began operations in May 2020. According to the carrier, it had served 500 restaurants and delivered close to 15,000 orders within three months of its operation.<br/>