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Korean Air Lines' planned takeover of Asiana Airlines is expected to face a full-scale EU antitrust investigation because of concerns about the merged entity's market power, people familiar with the matter said. The proposed acquisition, announced in late 2020 and one of the first major deals in the aviation industry since the COVID-19 pandemic, would see Korean Air become the top shareholder of indebted Asiana. The European Commission is set to open a four-month long investigation into the deal following the end of its preliminary review on Feb. 17, the people said. The EU antitrust watchdog and Korean Air declined to comment. The EU competition enforcer's concerns focus on four routes to Barcelona, Frankfurt, Paris and Rome and air passenger and air cargo services, the people said, indicating that Korean Air will likely have to cede airport slots to rivals. South Korea's antitrust enforcer gave conditional approval last year subject to Korean Air giving up slots and traffic rights for 26 international and 14 domestic routes in the next 10 years if a newly competing airline requests them. The UK competition agency is now examining Korean Air's proposal to help a rival get a foothold on the London-Seoul route.<br/>

Debt-ridden Thai Airways International expects to exit its rehabilitation plan ahead of schedule and is shopping for new planes as the recovery in global tourism bolsters earnings. Thailand’s state-controlled carrier will be able to leave its court-supervised debt plan “much earlier” than a late-2024 target, CEO Chai Eamsiri said Thursday. The company is also in talks with plane makers including Boeing Co. for “long-term” acquisitions of new aircraft to modernize its fleet, he said. Revenue will grow by at least 40% this year, said Chai, who was promoted to CEO at the start of the month. The carrier is in the midst of a $5.3b debt rehabilitation plan, having already undertaken painful cost cuts including halving its workforce and downsizing its fleet by about 40%. But with global tourism springing back to life faster than expected as the world moves on from pandemic restrictions, Thailand has seen its position as a major travel destination accelerate since the second half of last year. To cope, Thai Airways plans to bring back into service some planes it previously aimed to sell. “Thai Airways earnings will enjoy another year of excellent growth, with the return of Chinese travelers adding to an already hot market for air travel,” Chai told a press conference. “We have met most conditions in the debt plan quite quickly, and now begins our long-term growth program that includes new plane procurement and fleet modernization.” Thai Airways has been in talks with plane makers over the addition of about 20 twin-aisle passenger jets, Bloomberg News reported in December. Those discussions include ones with Boeing over acquisition of 787-9 wide-body aircraft. Thai Prime Minister Prayuth Chan-Ocha now expects foreign-tourist arrivals to exceed 30m in 2023, though other government agencies still forecast about 25m. In any case, international visitors will far exceed last year’s tally of just over 11m, spurred by the lifting of the Covid-Zero policy in China, Thailand’s largest market before the pandemic. <br/>

Singapore Airlines and Vietnam Airlines are looking to deepen their relationship, following the signing of a memorandum of understanding (MOU) on commercial collaboration. The MOU was disclosed on the sidelines of the Vietnam-Singapore Business Forum, which coincides with an official visit from Vietnamese prime minister Pham Minh Chinh. Both airlines will “initially explore opportunities for codeshare arrangements” on flights between Singapore and Vietnam, with the potential to expand to other cities that SIA serves in its network. “The two airlines will also explore other areas of commercial cooperation that could offer more value and options to their customers,” says a joint statement issued by both carriers. “As international border restrictions eased in 2022, both airlines sought opportunities to expand their bilateral cooperation to provide quality service for their customers travelling between Vietnam and Singapore,” they add. According to Cirium schedules data, both carriers jointly operate more than 60 weekly flights between Singapore and Ho Chi Minh City and Hanoi. In addition, SIA has daily flights to Da Nang, while low-cost unit Scoot operates to Ho Chi Minh City and Hanoi. Vietnam Airlines chief Le Long Ha says Singapore “remains one of the most” important markets, adding: “We hope to leverage our joint capabilities throughout many commercial fields of our business and therefore provide seamless experience to our valued customers. This MoU will also build a strong foundation for our future partnership and robust recovery after the pandemic.” SIA chief Goh Choon Phong says the partnership will also be able to “bolster initiatives that facilitate tourism activities” and support economic growth. Adds Goh: “Singapore Airlines and Vietnam Airlines have well-established networks, which can support one another to strengthen the connectivity between the two ASEAN (Association of Southeast Asian Nations) countries and to key markets around the world.” <br/>

Jetstar has joined Air New Zealand in offering flexibility on tickets to some destinations which may be affected by Cyclone Gabrielle. The storm is in the Coral Sea and moving southeast towards New Zealand. It reached "severe" category 3 status on Friday. MetService is predicting severe weather for the upper North Island from Monday, but Gabrielle’s path and specific effects are still yet to be confirmed. Jetstar has announced that travellers on domestic services departing from or into Auckland or Wellington between Sunday, February 12 and Monday, February 13, who want to change their travel plans can contact the airline to request a date change or a refund in the form of a Jetstar travel voucher. A spokesperson said: “Safety is our number one priority, and our teams continue to closely monitor tropical Cyclone Gabrielle. If flights are impacted, customers will be contacted directly.” Earlier Air New Zealand offered customers who are booked to travel to, from or through Auckland, Whangārei, Kerikeri, Tauranga, Hamilton and New Plymouth between Sunday, February 12 and Friday, February 17 flexibility on their fares.<br/>