European carrier Volotea expects to lift seat capacity by around a third this summer compared with its pre-Covid peak in 2019, fuelled by the addition of 70 new routes. The capacity increase would mark Volotea out as one of the few European carriers aiming to operate more capacity this summer than before the crisis. Volotea last year shifted greater focus on to domestic routes within its key market such as France, Italy and Spain, enabling it to operate more than four-fifths of its previous capacity in the third quarter of the pandemic-hit 2020. In carrying 3.8m passengers last year, it kept the fall in volumes down to under half the 7.3m Volotea handled in 2019. It also brought forwards plans to replace its Boeing 717s with Airbus A320s, expanding the fleet size and seat count in the process. Volotea, which had already been operating A319s alongside its 717s, expects to operate a total fleet of 40 Airbus narrowbodies this summer. As a result, its seat capacity will be at least 30% higher than in summer 2019.<br/>
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The proposed sale of regional operator Stobart Air and Carlisle Lake District airport has hit turbulence after the buyer’s proposed financing for the deal fell through. Esken, which rebranded from Stobart Group, agreed in April to sell Stobart Air Unlimited Company, which operates regional flights under a franchise agreement for Aer Lingus, and Stobart Air (UK) Ltd, the owner of Carlisle Lake District airport to Isle of Man-based investment firm Ettyl. Prior to the completion of the sale of Esken further agreed to take back 100% ownership of aircraft leasing company Propius, for GBP1. The energy and transport company agreed to retain responsibility for the continuing lease obligations of Propius under the existing lease arrangements until April 2023. The deal was contingent on certain change of control and bank facility consents that had been expected in early May. However, on 28 May, Esken said in a London stock exchange update that the completion was taking longer than planned due to the change of control consents not being obtained. In a second 28 May update, released after the stock market had closed, Esken said it had become “aware that Ettyl’s proposed financing for the transaction is no longer available” and that Ettyl was in discussions over another potential source of financing.<br/>
Europe’s largest airline is calling for the transport secretary to axe the “nonsensical” requirement for green list arrivals to take two PCR tests when they return to the UK, as well as abolishing restrictions for those who are fully vaccinated. Currently, all arrivals from destinations on the green list, which includes Portugal, Gibraltar and Iceland, have to take a PCR test within two days of landing, regardless of vaccination status. A cheaper negative lateral flow test must also be presented to airline staff before departure back to the UK. The testing requirement for UK arrivals can run into hundreds of pounds for a family; research from Which? showed that a family of four could face a testing bill of up to GBP1,500 for a holiday. Ryanair has urged Grant Shapps to abolish travel restrictions for fully vaccinated passengers, and to axe the current requirement to present a negative day two PCR test, which the airline says “only adds cost and stress to UK citizens despite returning from low-risk EU destinations”. The next review to the green list is slated for Thursday 3 June.<br/>
AirAsia X shareholders have approved the Malaysian budget airline's debt restructuring, it said on Tuesday, allowing it to pursue a scheme it viewed as key to survival. Shareholders of the long-haul affiliate of AirAsia Group approved all resolutions at an extraordinary general meeting, including a rights issue and a share subscription for new investors to raise 500m ringgit. AirAsia X last October proposed restructuring its 64.15b ringgit debt into a principal amount of 200m ringgit and having the rest waived. The airline said that the resolutions were passed with at least a 99.8% margin, and marked a major milestone in its restructuring progress. "These approvals have been obtained simultaneously with final negotiations being held with creditors," it said, adding that with advisers New York-based Seabury Capital it had been "in active and productive" talks with lessors and others. A Malaysian court in February granted the airline leave to convene separate meetings with its different groups of creditors within six months, to vote on its scheme. The meeting is scheduled for late July or August, AirAsia X said. In March, the court also granted AirAsia X a three-month order against any proceedings that may be filed against it, which could have slowed down its restructuring.<br/>