JetBlue Airways' decision to abandon its alliance with American Airlines has improved its chances in the trial over a $3.8b deal to buy Spirit Airlines, but may not be enough to hand it a victory, antitrust experts said. In its lawsuit filed in March aimed at stopping JetBlue's purchase of Spirit, the US Justice Department (DOJ) cited as evidence JetBlue's alliance with American at airports in New York and Boston several times. Calling the partnership a "de facto merger," the DOJ argued that JetBlue's proposed purchase of Spirit, a Florida-based ultra-low cost carrier, would lead to further industry concentration. On Wednesday, JetBlue CEO Robin Hayes said ending the partnership with American has taken the DOJ's "misplaced" concerns off the table and would help when the Spirit case goes to trial in October. Eleanor Fox, an antitrust professor at New York University School of Law, said JetBlue would have found it even harder to win the Spirit trial by being in alliance with American because it had made the carrier a bigger player in certain markets. "It improves the chances that JetBlue-Spirit will win the trial," Fox said. Former Federal Trade Commission Chairman William Kovacic, who now teaches at George Washington University law school, said the airline had to choose between the alliance and the Spirit merger as both could not survive regulatory scrutiny. The alliance had allowed JetBlue access to American's airport slots and customers, letting it add new routes and operate more flights out of airports in New York and Boston.<br/>
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Norwegian Air said on Thursday disruptions caused by a shortage of air traffic controllers at the Copenhagen airport, a big hub for the airline, were easing. “The air traffic control issues at Copenhagen airport that impacted our operations in June have improved,” it said. Norwegian Air voiced concerns in May over the staff shortages during its busy summer months, and rival SAS said last month it was seeking compensation for the costs caused by the situation. Naviair, the company controlling air traffic in Danish airspace, shed 46 air traffic controllers in voluntary layoffs during the COVID-19 pandemic, leaving remaining staff to take additional paid shifts as travel recovered. But Naviair controllers in late April began turning down the extra work in a conflict over work hours, leading to delays and cancellations. <br/>
Norwegian has entered into an agreement to purchase compatriot Wideroe. The move comes after the two Norwegian carriers signed a letter of intent in July last year to ”closely co-operate in a number of areas in the future”. Norwegian will pay NKr1.13b ($105m) for the regional airline, it said on 6 July, although the price is subject to adjustments relating to Wideroe’s profitability this year. The low-cost carrier expects the deal to be closed by the end of 2023, it says, subject to regulatory approval from the country’s competition authority. “Our two airlines have existed side by side for many years and no one knows the aviation market in Norway better,” says Norwegian CE Geir Karlsen. ”With this transaction, we will now create a streamlined and more comprehensive offer for all customers, and we look forward to offering seamless travel across our entire route networks.” The intention is for Wideroe to retain its brand and separate headquarters in Bodo, Norwegian says. It will operate as a business unit “independent from Norwegian´s core low-cost carrier operation”. Norwegian cites the potential benefits from “linking Wideroe’s wide-spanning regional route network, covering more than 40 small and medium-sized airports across Norway, with Norwegian’s attractive domestic and international routes”. The purchase comes with Norwegian still ramping up capacity following a pre-Covid-initiated business transformation, which has seen it focus on its short-haul network from Scandinavian bases. It is operating around 80 Boeing 737-family aircraft during the current summer season.<br/>
Icelandair has firmed its April preliminary commitment for up to 25 Airbus A321XLRs, while separately leasing four A321LRs from SMBC Aviation Capital. The firm portion of the order, Icelandair’s first for Airbus aircraft, covers 13 A321XLRs. Deliveries begin in 2029. It has also secured purchase rights on a dozen more of the jets. Icelandair CE Bogi Nils Bogason says: “The efficient A321XLR aircraft will further strengthen our business model, increase our flexibility and provide opportunities for future growth, as well as further support our sustainability efforts. The first aircraft is scheduled for delivery in 2029 but we plan to have four Airbus aircraft in operation before summer of 2025 and have now secured the lease of new A321LR aircraft with our long-term partner SMBC Aviation Capital.” Icelandair is currently a predominantly Boeing operator. The airline has so far taken delivery of 18 of 20 Boeing 737 Max jets, Cirium fleets data shows. It also flies Boeing 757 and 767s, as well as De Havilland Canada Dash 8 turboprops.<br/>
Jet2 has seen a pick-up in demand for package holidays as Britons seek certainty on spending in a cost of living crisis, the travel company said on Thursday, as it met annual profit forecasts. Philip Meeson, who built Jet2 into Britain's biggest seller of package holidays, will step down as executive chairman and leave the board later this year, the company also said. British aerobatics champion Meeson bought the firm in 1983 when it was a freight carrier flying flowers to Britain from the Channel Islands and transformed it into an airline flying leisure passengers from 2003. The Leeds-based company overtook former package holiday market leader TUI last year, and said it was confident of future demand despite the pressure on disposable incomes from high inflation and rising interest rates. "The end-to-end package holiday is a resilient and popular product, particularly during difficult economic times," Jet2 said. For this summer, customers who bought packages rather than just flights represented 73% of its departing passengers, up 5 percentage points on the same period last year, it said. Despite rising costs, margins per booked passenger were "satisfactory", said the group, which in light of its positive financial performance decided to restart its final dividend after a pandemic hiatus, paying out 8 pence per share. For the 12 months to the end of March, Jet2 posted pretax profit before foreign exchange revaluation of GBP390.8mp ($497m), within its guidance range of GBP387-392m. Jet2 said it was too early to forecast profit for the 2023-2024 year, adding that Meeson, who owns 18% of the company according to Refinitiv data, would become non-executive chair later this year and remain until a successor is found.<br/>
Families who lost loved ones in the destruction of Flight PS752 are celebrating after their long fight to bring Iran to account in an international court moved one step closer to success this week. Canada, the U.K., Sweden and Ukraine officially launched their case against Iran on Wednesday before the International Court of Justice. The joint application instituting proceedings said "Iran has violated its obligations" under an international treaty and failed to prevent the "unlawful and intentional" destruction of Flight PS752. Iran's Islamic Revolutionary Guard Corps (IRGC) fired two surface-to-air missiles at the Ukraine International Airlines flight on Jan. 8, 2020, shortly after takeoff in Tehran. All 176 people onboard died, including 55 Canadians and 30 permanent residents. Victims' families in Canada say they've been pushing the federal government to take this case to the international court, the primary judicial organ of the United Nations. "We've been fighting for three and a half years for this day. It's actually unbelievable we're seeing this day," said Maral Gorginpour. Her husband died on the flight just three days after their wedding. "Seeking justice and truth for his life was the only thing that kept me alive."<br/>
Oman Air has signed a three-year sponsorship agreement with English Premier League football club Chelsea, Oman’s state news agency reported on Thursday. The airline will be granted status of global airline partner for the club, the agency added.<br/>
Emirates rolled out premium economy class seats in June for flights from Singapore to Dubai, in a move to capture demand from travellers who want to fly in greater comfort at more affordable prices. The United Arab Emirates carrier has outfitted its A380 planes with 56 premium economy seats each, and Emirates’ country manager in Singapore and Brunei Rashid Al Ardha is confident that the new cabin “will cater to the requirements of both corporate and leisure travellers”. Fares for Emirates’ premium economy class start from $1,729, compared with $699 for economy class and $3,009 for business class, although final prices are subject to market dynamics. At present, travellers cannot use their frequent flier points to upgrade from economy to premium economy. Emirates has lagged behind other carriers in offering such seats, only doing so from 2021 for flights between Dubai and London. The carrier now offers the choice of premium economy seats to eight destinations including Singapore, New York and Christchurch. In comparison, Cathay Pacific launched its premium economy class in 2012, while Singapore Airlines (SIA) did so in 2015.<br/>
State-owned Saudia, formerly Saudi Arabian Airlines, announced on Thursday that it would allocate over 7.4m seats to domestic and international flights in July and August, a 10% increase over the same period last year. According to a press statement, the national carrier will operate over 32,400 flights during this period, up 4% from the same time last year. These measures aim to meet high demand during peak seasons and ensure smooth operations, efficient reservations for scheduled and seasonal destinations, and streamlined airport processes, the statement said. The airline will provide over 4.2m seats on its international routes, a 16% rise over July and August last year. It will also introduce over 14,800 flights during the period, a 15% climb over last year. The statement added that over 3.2m seats will be available on domestic routes through 17,600 flights. Captain Ibrahim Koshy, CEO of SAUDIA, emphasized the airline’s extensive experience managing operations throughout the year, especially during peak seasons. The plan includes increasing flights and seat capacity and introducing seasonal destinations to meet guests’ needs while providing excellent services. The airline has implemented comprehensive procedures and prepared the necessary facilities to ensure a successful summer season and Hajj pilgrimage.<br/>
Jin Air, the low-cost carrier unit of Korean Air, said Friday it will open the Incheon-Nagoya route in September on growing travel demand to Japan. Jin Air plans to provide two flights a day on the Nagoya route from Sept. 15, the company said. The budget carrier currently offers flights to seven Japanese cities from Incheon and the southeastern port city of Busan. Jin Air swung to a net profit of 60b won ($45m) in the January-March quarter from a net loss of 31b won a year earlier. Resumed flights on existing international routes to Southeast Asia and Japan, and new routes to Okinawa, Sapporo and Nha Trang helped the company make a turnaround in the first quarter. Jin Air also shifted to an operating profit of 84.9b won in the March quarter from an operating loss of 46.4b won a year ago. Sales more than quintupled to 352.5b won from 67.5b won.<br/>