Federal transportation regulators will decide whether to challenge JetBlue Airways Corp.’s purchase of Spirit Airlines Inc. only after the Justice Department’s lawsuit to block the deal is decided, setting up lengthy litigation over the deal. Transportation Secretary Pete Buttigieg said in an interview with Bloomberg Monday that his agency is looking at all potential avenues to inject competition into the airline industry after decades of consolidation. Last week, the Justice Department sued to block the $3.8b takeover while transportation officials said they would deny JetBlue and Spirit’s request to operate as a single carrier while awaiting final approval of the deal. The transportation agency also opened an investigation into whether the acquisition violates rules governing unfair and deceptive practices, or unfair competition. It’s important “for us to use all of the tools that we have as an administration, including those that are in the DOT toolkit, when it comes to competition issues,” Buttigieg said in an interview with Bloomberg. “We’re looking at everything we can do.” The agency hasn’t used its authority to block the transfer of a certificate — the formal federal approval to operate aircraft and carry passengers — among major airlines since the industry was deregulated in 1978. The airlines added an extra six months to the deal’s timeline in anticipation of litigation by the Justice Department, but Buttigieg didn’t say how long additional federal scrutiny from his agency could last.<br/>
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Colombia’s civil aviation regulator, Aerocivil, has approved 27 domestic routes for Chile’s ultra-low-cost carrier JetSmart. The Santiago-based airline said on 7 March that it will “immediately start the certification process” and it will build a base in Bogota. “With the authorisation for the low-cost airline to enter the national market, the Colombian government, through Aerocivil, gives a strong signal of its willingness to maintain free market conditions in the air sector,” the airline says. The announcement comes just two weeks after Colombian low-cost carrier Viva Air suspended operations. Viva had been trying to obtain clearance for a merger with Colombian heavyweight Avianca, which had resulted in regulatory scrutiny – the duration of which Viva had blamed for its decision to stop flying. In recent weeks, both LATAM Airlines Group and JetSmart had also expressed interest in acquiring financially strapped Viva. “The approval of our application to enter 27 domestic routes is excellent news, as well as the start of JetSmart’s certification as a Colombian airline,” says JetSmart CE Estuardo Ortiz. “With this we will immediately start the process and we will work hand in hand with Aerocivil to be able to comply with all the requirements in the shortest possible time.” The carrier says it has been approved to operate flights from the following Colombian cities: Bogota, Barranquilla, Bucaramanga, Cali, Cartagena, Medellin, Cucuta, Monteria, Pereira, Pasto, San Andres and Santa Marta. <br/>
The head of Flair Airlines went on the offensive Monday, saying the weekend seizure of some of its planes may have been instigated by another carrier attempting to disrupt Flair's operations. Four leased jetliners, on which payments were overdue, were grounded Saturday after a "commercial dispute" with New York-based Airborne Capital Inc., Flair said. CEO Stephen Jones said the growing presence of Flair and other discount carriers is a threat to the country's two major airlines. “We’ve come in and upset the cozy duopoly, and as a consequence people want us out of business," Jones said at a news conference on Monday. "And we do believe that there were negotiations going on behind the scenes between one of the majors and the lessor to hurt Flair by them offering probably above-market rates for the aircraft we’ve been leasing." He did not offer any specifics to back up the claim. "While I’m not going to name names or cite evidence, I believe that there is much more to this picture than the surface that you see,” Jones said. Peter Fitzpatrick, spokesman for No. 1 carrier Air Canada, said the company had not spoken to any of Flair's lessors, "nor have they come to us offering their aircraft." The four Boeing 737 Maxes were "only a few days in arrears" with about $1 million owing, "which is about half of one day's sales for us," Jones told reporters. Two additional 737s leased from Airborne Capital were not part of the group of seized planes.<br/> “We’re 100 per cent caught up," he added, referring to payments on leases across its 19-plane operating fleet. (The tally does not include the four seized planes.)<br/>
Boeing is expected to sell nearly 80 787 Dreamliner airplanes to two Saudi Arabian airlines, a source briefed on the matter said Monday. An announcement of the plan reported earlier by the Wall Street Journal is expected as soon as Tuesday, and the list prices for 78 planes would total nearly $37b. Airlines typically get undisclosed discounts when buying airplanes. State-owned Saudi Arabian Airlines (Saudia) and new national airline Riyadh Air will both be acquiring Boeing 787s, the source said. The airlines are expected to buy a total of 78 787s split between the two buyers and have options to buy another 43, the source said. Saudi Arabia's Crown Prince Mohammed bin Salman formally announced on Sunday the creation of Riyadh Air, with industry veteran Tony Douglas as chief executive, as the kingdom moves to compete with regional transport and travel hubs. Riyadh Air will serve more than 100 destinations around the world by 2030, making use of the kingdom's location between Asia, Africa and Europe, state news agency SPA said. The new airline is expected to add $20b to Saudi Arabia's non-oil GDP growth and create more than 200,000 jobs both directly and indirectly, it said. Riyadh Air is wholly owned by Saudi Arabia's sovereign wealth fund, the Public Investment Fund, which has more than $600b in assets and is spearheading the kingdom's efforts to diversify its economy and wean itself off oil. In October, Saudi Arabia was in advanced negotiations to order almost 40 A350 jets from Airbus, while Boeing was also lobbying for a slice of the kingdom's transportation expansion, industry sources had told Reuters.<br/>
A Doha-bound flight that departed from Delhi in India had to make an emergency landing in Pakistan after a passenger fell sick onboard and eventually died. The IndiGo flight 6E-1736 landed at the Jinnah International Airport in Karachi just past midnight after taking off on Sunday at 10pm local time. According to civil aviation authorities, the captain requested for an emergency landing when the passenger fell ill onboard. However, upon arrival, the passenger was declared dead by the airport’s medical team, the airline said. The dead has been identified as a 60-year-old Nigerian national named Abdullah. The plane departed for Delhi with the passenger's body around 4am (local time) after Pakistani authorities handed a death certificate. "We are deeply saddened by the news and our prayers and wishes are with his family and loved ones," the budget airline said. It added at the time that arrangements were being made for the transfer of the other passengers in coordination with the relevant authorities. <br/>