Senior executives of JetBlue Airways and Southwest Airlines argued in court Wednesday over JetBlue’s controversial partnership with American Airlines that the Biden administration is seeking the thwart. JetBlue CEO Robin Hayes told a federal court in Boston the partnership will help his airline grow, accommodate customers whose flights gets canceled, and attract more corporate travelers. Hayes disputed the government’s view that the deal will reduce competition and cost consumers hundreds of millions of dollars a year in higher fares. But Southwest’s Andrew Watterson said he was disappointed that the partnership will give American access to valuable JetBlue slots that American once controlled but was forced to surrender to win regulatory approval of a 2013 merger and a separate transaction. “We thought that was outrageous,” said Watterson, who will become chief operating officer at Southwest later this week. The Justice Department, six states and the District of Columbia seek to break up the American-JetBlue partnership in a case that has become a major test of the Biden’s administration’s opposition to mergers and consolidation in key industries. The Transportation Department approved the deal in the final days of the Trump administration.<br/>
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Announcements from two of Canada's largest low-cost carriers propose expansion in the budget leisure market. Flair Airlines CE officer Stephen Jones announced a deepening of focus to current routes with daily frequency increases to locations including Calgary, Toronto, Montreal and Vancouver. The Edmonton-based airline said it plans to expand its fleet to 30 aircraft, up from 20, by the end of next year, with planned service to 70 routes and is a step toward Flair's five-year plan to reach 50 aircraft. Calgary-based Lynx Air also announced plans for expansion in 2023 as the airline will begin offering flights to the U.S. market starting early next year. The US routes will include year-round flights from Toronto to Orlando, Fla., Calgary to Phoenix, Calgary to Los Angeles, and Calgary to Las Vegas, said Lynx CEO Merren McArthur. “We know that Canadians love to chase the sun in the winter and we want to give them an ultra-affordable option with Lynx,” said McArthur. More domestic destinations are anticipated to be added to Lynx's flight offerings said McArthur as the airline hopes to one day be Canada's No. 1 low-cost carrier. For now however, McArthur said that Lynx is “not really here to take market shares from our competitors, but really to grow the market and empower more Canadians to travel and fly." Flair also proposed more flights to sun destinations Wednesday, as Jones announced they would be extending the number of flights to Mexican destinations, including Cancun, Cabo San Lucas and Puerto Vallarta. <br/>
Aer Lingus has announced a new transatlantic route for next summer, adding a direct route from Dublin to Cleveland, Ohio, in the US from May 19th. The service, which will operate four times weekly, will take its number of transatlantic routes from Ireland in summer 2023 to 15. Fares would start from E199 each way including taxes and charges, it said. Aer Lingus will be the only Irish or European airline to operate from Cleveland. It said the announcement of the city as a new destination demonstrated its commitment to connecting Europe to North America via its Dublin Airport hub. The company also operates three long-haul services from its Manchester base in the UK. “This is a significant announcement for Aer Lingus as we deliver on our ambition to grow our transatlantic network. The commencement of a new route, accompanied with further network connectivity, is an exciting milestone for the airline during a critical time of recovery for our business. The new service to Cleveland not only provides a direct connection to Ireland but connections to over 20 popular European destinations via our Dublin hub,” said Reid Moody, Aer Lingus’s chief strategy and planning officer.<br/>
Ryanair has not seen any impact on bookings in the United Kingdom in the wake of the recent fall in the value of the pound and increase in domestic mortgage rates, but the market is likely to be challenging, a senior executive said. "We're not currently seeing an impact, but it would be foolish not to say that if interest rates are heading up and household bills are heading up, you're going to have less money spent," said Eddie Wilson, chief executive at Ryanair DAC, the largest airline in the Ryanair Group. "The UK is going to be challenging but we have more options and we are better planned than our competitors," said Wilson, whose airline is one of the largest operators in the United Kingdom by passenger numbers. Ryanair often gains passengers from higher-cost rivals during economic downturns, he added. Economists have warned that British consumers are likely to face a further hike in borrowing costs and the price of imported goods following the pound's plunge against the dollar after deep tax cuts and deregulation by new finance minister Kwasi Kwarteng.<br/>
Hong Kong Airlines has disclosed plans to file for debt restructuring in the Hong Kong and UK courts, in a move that will see the airline cut its fleet by more than half. In a 27 September statement, HKA says is seeking orders to convene a creditors’ meetings to consider and approve a scheme of arrangement in Hong Kong, as well as a UK restructuring plan. The airline, linked to China’s HNA Group, has debts amounting to over HK$49b ($6.2b), according to a practice statement letter released on the same day. Nearly half of the debts are owed to financial and operating lessors, at around HK$22.5bi, the letter states. Bank lenders and financial creditors, meanwhile, are owed HK$5.7b, while related party creditors are owed about HK$6.8b. The first hearing in the High Court of Hong Kong is set for 13 October, while the first hearing in the High Court of Justice of England and Wales will be held on 25 October. The airline hopes the restructuring process will help deliver a “strengthened and de-levered balance sheet, with lower overall gross debt”, as well as “rationalised rental payments” on a pared-down fleet of 20 aircraft, a significant reduction from the current fleet of 53 jets. HKA suffered the double whammy of political unrest in Hong Kong in 2019, followed by the collapse in travel demand from the coronavirus pandemic.<br/>