The US government on Tuesday reassigned 16 peak-hour runway timings at congested Newark Airport in New Jersey to Spirit Airlines from Southwest Airlines, saying this would boost competition and help reduce costs for travelers. The move "secures low-cost service options for Newark customers and improves competition in the Newark market," the US DOT said. USDOT said Spirit must report additional data on disruptions facing airline customers and its ability to provide them with accommodations, noting Spirit's "higher relative number of customer complaints" received by the department. Southwest has operated the 16 timings since 2010 when it acquired them as part of a US Justice Department competition remedy to United's merger with Continental. JetBlue Airways, which is battling with Frontier in its quest to buy Spirit, sought all 16 timings while Alaska Airlines sought four. Alaska said it was disappointed, arguing it is "uniquely positioned to offer reliable service with lower fares between the Northeast and the West Coast – directly competing with airlines with larger networks." United is the dominant carrier at Newark operating 69% of flights and previously advocated for the timings being retired to reduce congestion. Last month, United said it would temporarily cut about 12% of daily departures from its Newark hub starting on July 1 to address congestion.<br/>
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Shareholders of LATAM Airlines, Latin America's largest air transport group, approved Tuesday a bankruptcy reorganization plan, following last month's approval by the US bankruptcy court for the southern district of New York. The plan will inject about $8b through a combination of capital increase, issue of convertible bonds, and new debt. "Beyond being a requirement to exit Chapter 11, the plan is our strategy to ensure LATAM's operational continuity and long-term sustainability," said the company's CEO, Roberto Alvo, during the meeting. Born in 2012 from the merger of Chile's LAN with Brazilian rival TAM, LATAM filed for bankruptcy protection two years ago in the United States because of the fallout of pandemic restrictions. LATAM has said it hopes to emerge from bankruptcy protection in the year's second half.<br/>
Nigeria's private airline, Air Peace, will start direct flights to Guangzhou, China, and Mumbai, India, in a move to expand connections on the Asian continent. The airline Tuesday said the first flight of the once-weekly flights from Lagos, Nigeria's economic hub, to Guangzhou is scheduled for July 13, and two-weekly flights to India later this month, as it hopes to increase frequencies when operations garner momentum. "Air Peace is unflinchingly committed to reducing the air travel burden of Africans, and we will continue to grow our route network as well as modernize our fleet strategically," said Stanley Olisa, the airline spokesperson, in a statement.<br/>
Korean budget carrier Eastar Jet readying for takeoff upon refueling under new ownership could become grounded as the government embarked on an audit on fraudulent accounting report. According to the land, infrastructure, and transport ministry Tuesday, it has confirmed falsified accounting in the files Eastar Jet submitted for renewal of license to add long-haul flight after the bankruptcy court approved of the sale and reorganization scheme in November 2021. The airliner received new permit on Dec. 15 by leaving out the fact that its assets were entirely overwhelmed with debt. It reported 365.4b won in capital surplus and 199.3b won in deficits. But under the disclosure of audited financial statement on May 13, reserve of 375.1b won was entirely overwhelmed by deficit of 485.1b won as of December 2021. Transport minister Won Hee-ryong said the ministry will carry thorough investigation and audit on violation of rules in the process of Eastar filling for new flight permit. “We will take strict actions based on the finding.”<br/>
A Boeing 737 Max operated by SpiceJet flying from New Delhi to Dubai diverted to Karachi after an indicator light malfunctioned, according to a spokesman for the Indian low-cost carrier. The plane landed safely and a replacement aircraft is headed to Karachi to pick up passengers and complete the journey, the spokesman said. A Pakistan Civil Aviation Authority spokesperson, who described the incident as an emergency landing, said the plane was carrying 138 passengers. He said there was an issue with the fuel indicator. India’s aviation regulator is investigating, according to an official from the Directorate General of Civil Aviation, who said the crew noticed an unusual decrease in fuel in the left tank and decided to divert to Pakistan’s commercial capital. No emergency was declared, the official said, and no fuel leak was observed during inspections after landing.<br/>
One of the world’s cheapest airlines is promising to slash fares for Kiwis as it announces a return to New Zealand. Air Asia has confirmed that it has ambitious expansion plans, including a return to Auckland via Australia. Flights would leave Auckland, then cross the Tasman to an airport in Australia, before heading on to Kuala Lumpur. Passengers would then be able to connect to dozens of destinations throughout Asia or to places like Istanbul and London. The flights will be run by AirAsia X, the airline’s long-haul offshoot, which uses A330 aircraft with 377 seats. The airline last launched a route to Auckland in 2016, with $99 fares to the Gold Coast and $249 to Kuala Lumpur. As travel demand has ramped up following Covid-19 border closures, airfares have skyrocketed, leading to booked-out flights across the Tasman and one-way fares costing as much as $1000 to Sydney. Air New Zealand, Qantas and Jetstar are the main airlines currently flying across the Tasman – with some services also being run by Qatar and Latam Airlines. But operators could be about to face more competition, with Air Asia promising to deliver “industry-leading” fares – in other words – the cheapest.<br/>