Sweden’s parliament on Tuesday approved a proposal by the government to allow loss-making airline SAS to convert debt borrowed from the state into equity, as part of a process to help rescue the carrier from collapse. Fighting to survive, SAS, which is part-owned by Sweden and Denmark, plans comprehensive reorganisation to slash costs, raise 9.5b Swedish crowns ($942m) in cash from owners and investors, and convert 20b of debt to equity. The Swedish government this month suggested parliament agree to the debt conversion, but said no to injecting more cash than it already has into the long-struggling airline. The Danish government has said it is willing to write off debt and inject more capital however - as long as private investors get on board too.<br/>
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Airlines are planning to operate less than half the number of international flights to Japan, compared with pre-pandemic levels, for the rest of the year despite the government opening the country to tourists on June 10. The cautious outlook is a sign that Japan will face challenges attracting travelers under the current arrangements. Japan began allowing group tours from 98 countries and regions designated "blue," but the rules require tour guides to accompany visitors and make sure they follow mask-wearing and hand sanitizing protocols. All tourists are required to obtain a visa to enter the country. In all, 61,298 inbound flights to Japan are scheduled for July to December, 58% fewer than during the same period in 2019, according to aviation analytics company Cirium. Globally, the number of scheduled flights between July and December is set to decline by 29% compared with 2019, the company said. Japan's two biggest airlines, ANA and JAL, said they have yet to consider adding flights in response to Japan's tourism reopening. "There has been no meaningful increase in bookings from overseas tour groups," a spokesperson for ANA told Nikkei Asia. A JAL representative echoed that, saying, "There is little demand for tourists under the current arrangement."<br/>Not all airlines are so pessimistic. Singapore Airlines recently said it plans to increase the frequency of its Tokyo-Singapore flights from 14 per week to 21, starting in July. The move "is in anticipation of demand from inbound tourists as a result of Japan's gradual easing of border restrictions," a spokesperson told Nikkei Asia. Still, Singapore Airlines' total number of flights between Singapore and Japan will remain about half that of pre-COVID levels.<br/>
Korean Air chief executive Walter Cho is hopeful of securing the necessary approvals from US and European Union competition regulators for the airline’s merger with Asiana by the end of this year. The SkyTeam carrier first announced plans to acquire Asiana in November 2020, as the coronavirus pandemic turned the country’s aviation sector on its head. It has since been ticking off various international regulatory issues, but still has to secure approval in several territories, notably including the USA and the EU. ”We weren’t expecting it be easy, because Asiana and Korean Air were basically 100% of the international market [out of Korea], especially in long-haul,” Cho told reporters during a media round table in Doha at the IATA AGM. “And with the US and EU, I expected there to be some issues. However, we are on track.” US and EU regulators are among those seeking to ensure there is enough competition on routes once the carriers are merged. While Cho argues that because a majority of its US-originating traffic is transit – meaning it is in competition with other carriers in region on these routes – Korean has been seeking other operators to enter some of the impacted routes. ”We are starting to talk with other carriers that have interest to fly to Korea and we are also starting to meet the request from the [US Department of Justice] and the EU on their requirements, which are basically similar,” says Cho. ”And we expect no later than the end of the year we will get the EU and US approvals, which is going to be the milestone of this acquisition process. And other countries, it’s similar progress right now. So everything should be done no later than the end of the year.”<br/>
THAI is banking on pulling out of bankruptcy protection and resuming trading of its shares earlier than planned as the carrier's bottom line is looking up. Chai Eamsiri, THAI's chief of finance and accounting, said on Tuesday the airline has continued to slash expenses and is confident its revenue will keep growing this year as the pandemic has subsided and travel restrictions are easing. The measures launched to streamline its operations and its improving financial performance are expected to enable the airline to emerge from financial rehabilitation and resume its stock trading sooner than was originally thought possible. The Stock Exchange of Thailand (SET) has suspended the trading of THAI shares since May 18 last year due to the risk of it de-listing as a result of negative equity and signs of non-compliance (NC). Chai said on Tuesday the company has until 2025 to resolve the issues that forced it to be suspended from the SET. However, the carrier is determined to get things back on track much sooner, he added. The recovery of global travel has narrowed THAI's losses to 3.1b baht in Q1 this year, down from 6.9b baht in the corresponding period last year. This week, the IATA announced in Doha, Qatar, an upgrade to its outlook for the airline industry's 2022 financial performance as the pace of recovery from the Covid-19 crisis quickens.<br/>