Zipair will become the first low-cost carrier to operate trans-Pacific flights, as it announces Los Angeles as its “much-anticipated” inaugural long-haul destination. The low-cost unit of Japan Airlines will commence thrice-weekly flights between Tokyo Narita and Los Angeles from 25 December. Flights will be operated with the airline’s Boeing 787-8 aircraft, configured to seat up to 290 passengers in two classes. Each 787 has 18 Jamco-supplied full-flat business seats and 272 economy seats from Recaro. Los Angeles is the airline’s second North American destination, after it launched Honolulu in December 2020. The announcement on 12 November comes as borders around the world begin to gradually reopen. Japan, which still remains shut out to general travellers, has eased travel restrictions for students and business travellers. Says Zipair president Shingo Nishida: “Ever since the introduction of Zipair, one of our key goals was to establish a flight across the Pacific and I could not be prouder to stand here today to announce the launch of our Los Angeles route.” As early as February 2020, right before the coronavirus pandemic turned the world on its head, Zipair had already floated the prospect of flying trans-Pacific flights. <br/>
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Azul’s CE doubled down on comments he made last week about a potential acquisition of LATAM Airlines Group, pending the outcome of the Chilean airline’s bankruptcy protection process. “The macroeconomic situation promotes consolidation in this space,” Azul’s John Rodgerson says during the Sao Paulo-based company’s third-quarter earnings call on 11 November. “We have a fiduciary responsibility to pursue consolidation.” Last week, in an interview with a Chilean financial publication, Rodgerson revealed plans for possibly acquiring the much larger company. Those plans, however, are at an early stage and are only relevant if LATAM Airlines Group – which was itself formed by the merger of Brazilian carrier TAM and Chilean airline LAN – fails to reach an agreement on restructuring as it seeks to exit US Chapter 11 bankruptcy protection. LATAM has until 26 November to present a restructuring plan to the US bankruptcy court for the Southern District of New York. The Santiago-based carrier, along with Latin American peers Avianca and Aeromexico, filed for bankruptcy protection after the Covid-19 crisis last year precipitated border closures, decimating travel demand. Avianca’s restructuring plan was accepted earlier this month, and Aeromexico has a court date on its reorganisation strategy next week. “LATAM has a process that we need to respect”, Rodgerson adds, but an acquisition could be ”in the best interest of creditors and our shareholders”. “We certainly haven’t given up on it because we think there is more to come as the exclusivity process expires in a couple of weeks and you’ll hear more from us at that time,” he adds.<br/>
Pan-European operator Ryanair is exceeding 2019 capacity levels in November 2021 for the first time since the onset of the Covid-19 pandemic, as it emerges from the crisis ahead of rivals. According to the latest data from European air traffic manager Eurocontrol, Ryanair operated 2,096 flights in the week commencing 4 November – 6% more than it did in the same week of 2019. Wizz Air flights were just 1% down on pre-crisis levels, albeit it operated around a quarter of Ryanair’s flight numbers. Indeed, Ryanair’s flight numbers for the week were more than double those of any other carrier, with Turkish Airlines closest at 1,003. Among Europe’s 10 busiest airlines, the next closest operator to Ryanair and Wizz in terms of recovery in flight numbers was Turkish low-cost carrier Pegasus, which was 14% down on 2019, followed by Turkish Airlines (19% down), KLM (20% down) and Air France (22% down). At the other end of the scale, British Airways flight numbers were 45% down.<br/>
Boeing may win a crucial deal as early as this weekend for some 70 to 80 737 Max jets from an Indian startup airline, according to people familiar with the matter, denting Airbus’s dominance in what was until recently the world’s fastest-growing aviation market. Akasa, a Mumbai-based carrier backed by billionaire investor Rakesh Jhunjhunwala, was earlier reported by Bloomberg News to be in talks with Boeing about the planes. A deal could be announced during the Dubai Airshow, which kicks off Nov. 14, some of the people said. An agreement of that size to take the most popular variant of the 737 Max family -- which most regulators have now approved to fly again following two deadly crashes -- could be valued at as much as $10b at current list prices, although discounts are common in large orders. Any transaction would allow Boeing to establish itself firmly in a narrow-body market dominated by Airbus aircraft. Market leader IndiGo is the world’s largest customer for the European planemaker’s best-selling jets with orders for more than 700 planes, while the Indian affiliates of Singapore Airlines and AirAsia Group all use Airbus A320 models. Low-cost carrier SpiceJet is currently the only Indian customer for the 737 Max, after Jet Airways India collapsed due to debt issues in 2019. Akasa would become one of the first new customers for the Max post-recertification, said Richard Aboulafia, an analyst with Teal Group. “Airbus is considerably ahead in terms of share in India and the market is especially important for Boeing given all the uncertainty in China.” “We always seek opportunities and talk with current and potential customers about how we can best support their fleet and operational needs,” Boeing said.<br/>
AirAsia X’s debt-restructuring proposal received more than 90% support from creditors in an electronic vote ahead of meetings Friday, according to a person familiar with the matter, as the debt-laden budget carrier tries to stay afloat. The three different classes of creditors, which include Airbus, BOC Aviation and Rolls-Royce Holdings, have voted in favor of the Malaysian long-haul airline’s proposed debt restructuring, said the person, who asked not to be identified because the information isn’t public. AirAsia X needs at least 75% support from each class of creditors to proceed with its plan. As part of the deal, Airbus has also agreed to significantly reduce AirAsia X’s existing aircraft orders, the person said, without providing details. The airline is the world’s biggest customer for the wide-body A330neo, with 78 aircraft on order, according to the French planemaker’s website. It also has an order for 30 narrow-body A321neos.<br/>
Thai AirAsia parent company Asia Aviation widened its third-quarter operating loss, amid a sharp revenue plunge from having to suspend operations during Thailand’s worst wave of coronavirus infections. For the three months to 30 September, Asia Aviation was Bt3.72b ($113m) in the red, widening the Bt3.1b operating loss it posted during the same period last year. Quarterly revenue plunged 81% year on year to Bt458 million, as passenger numbers nosedived 96% to just under 80,000. Amid soaring infections caused by the Delta variant of the coronavirus, Bangkok, where the carrier is based, was designated a “strict control” zone, with inter-province travel prohibited. Consequently, Thai AirAsia suspended all operations for most of the quarter, between 12 July and 2 September, as part of national pandemic prevention efforts. Capacity and traffic for the quarter plunged 95% year on year, amid the operational suspension. The reduced flying led to a drop in costs, though it failed to outpace the rapid decline in revenue. Asia Aviation’s expenses for the quarter was around Bt4.2b, 24% lower year on year. On a nine-month basis, Asia Aviation also widened its operating loss — at Bt9.7b this year, compared to Bt6.3b last year. <br/>
Governments around the world need to look at unified approaches to managing COVID-19, the Group CE of Malaysian budget airline AirAsia Group Tony Fernandes said at the APEC CEO Summit. Fernandes said leaders in the Asia-Pacific region were being “over-sensitive” with COVID-19 and needed to be braver and more standardised in dealing with the pandemic.<br/>