American Airlines CE Doug Parker will tell a US Senate committee that $54b in COVID-19 US government assistance “saved the airline industry,” according to testimony seen by Reuters. Parker is set to testify alongside the chief executives of Southwest and United on Wednesday. Delta’s chief of operations will also testify. Parker will tell the panel that had Congress structured the entire assistance as government loans most airlines “would have survived by shutting down flying in April 2020, furloughing almost all of our teams, and waiting for demand to return to levels strong enough to justify restoring flying. As it turns out, that would have been some time in 2021.” Lawmakers are expected to quiz executives about how carriers used pandemic-related federal aid, staffing issues and other matters. Parker will also say the airline has “set a target of hiring an additional 18,000 team members in 2022.” Lawmakers want to know if voluntary employee buyouts offered by airlines, despite receiving payroll assistance, caused operational problems at some carriers that have resulted in the cancellation of hundreds of flights in recent months.<br/>
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The Justice Department said on Monday a judge should reject a bid by American Airlines and JetBlue Airways to dismiss an antitrust lawsuit over their "Northeast Alliance" partnership. The lawsuit filed in September by the US government and six states alleges the deal would lead to higher fares in busy Northeastern US airports and seeks to unwind the partnership. The Justice Department and six states including California, Massachusetts and Arizona said in a court filing on Monday the Northeast Alliance "seeks to accomplish through a joint venture what would not be tolerated as a merger: eliminating significant competition between a dominant airline and a uniquely disruptive competitor. ... Instead of fighting with JetBlue, American now seeks to co-opt it." The lawsuit is set to go to trial in late September 2022. The government argued the "Northeast Alliance will cost consumers hundreds of millions of dollars" and the "promised benefits do not justify these harms." The government said "at a minimum, however, their promises should be tested through discovery and trial." The airlines argue the Justice Department and states should allow the alliance to continue to prove itself. They note their commitments to expansion, oversight and measures to address possible anticompetitive effects. The agreement allows American and JetBlue to sell each other's flights in their New York-area and Boston networks and link frequent-flyer programs in a move aimed at giving them more muscle to compete with United Airlines and Delta Air Lines (DAL.N) in the Northeast.<br/>
Qantas has signed a purchase agreement with fuel giant BP for 10 million litres of blended sustainable aviation fuel (SAF), which it use on flights between Australia and London in the new year. The Oneworld carrier also holds an option to purchase up to another 10m litres of blended SAF for 2023 and 2024, making up around 15% of its annual fuel use out of London. The move comes nearly a year after Qantas signed a partnership with BP to explore carbon emission reductions and SAF development, with aim of becoming net carbon neutral by 2050. The use of blended SAF will cut emissions for the London flights – also known as the ‘Kangaroo Route’ – by around 10%, says Qantas, which will release its interim target for net zero emissions in the new year. The carrier states that it will be the first Australian carrier to use SAF on an ongoing basis for regular scheduled operations. It adds that it is “in discussions” with other overseas ports, such as Los Angeles, to access SAF. “These volume agreements are crucial to bringing the cost of SAF down, which can be several times more expensive than traditional jet kerosene,” says Qantas.<br/>