general

Europe’s airlines clash with Italian premier over planned fare cap

Airlines have called on the European Commission to step into a row over the Italian government’s plan to cap air fares on certain routes, the latest clash between Prime Minister Giorgia Meloni and the corporate world. In addition to a surprise windfall tax on banks, Meloni’s rightwing government last week outlined plans for price caps on flights between mainland Italy and its islands of Sicily and Sardinia after ticket prices soared 70% on those routes. Airlines have responded furiously to Meloni’s proposals, which represent an unusual attempt to cap fares. Trade body Airlines for Europe (A4E) called on Brussels “to clarify with Italy that this intervention impacts the free and deregulated air transport market in Europe”, according to a letter seen by the Financial Times. “We are strongly concerned that if this law is adopted, it could set a precedent and lead to a domino effect resulting in similar regulations being adopted in other EU member states,” A4E managing director Ourania Georgoutsakou wrote.  Capping fares on these routes would “violate” the rights of airlines “to compete wherever possible, set prices and define services as they see fit”, Georgoutsakou said. Under the Italian plan, airfares during the high season would be capped at 200% of average prices while the use of “profiling algorithms” that may impact prices would also be limited, according to a statement from the prime minister’s office. Ryanair, Europe’s largest airline, described Italy’s plans as “illegal” under EU law. The low-cost carrier said the intervention would “have unintended consequences” of raising air fares in the long run by reducing flight and passenger numbers. The commission said last week that it was seeking clarifications from Rome, adding that price capping was rarely an effective means of achieving affordable prices. <br/>

Germany to retire two govt planes after minister stranded in Abu Dhabi

Germany will decommission two ageing Airbus 340 government planes as soon as possible after Foreign Minister Annalena Baerbock was stranded with one in Abu Dhabi due to safety issues, an air force spokesperson said on Tuesday. As a result of the incident, the planes will be taken out of service in the coming weeks, bringing forward their planned decommissioning from September 2023 and the end of 2024, respectively, the spokesperson added. Baerbock cancelled her planned week-long trip to Australia, New Zealand and Fiji on Tuesday after being forced to return to Abu Dhabi twice due to a technical malfunction with the wing flaps following a refuelling stop there. Her A340 was still parked in Abu Dhabi on Tuesday morning. The incident was the latest of several that have caused Berlin to overhaul and modernise its government fleet.<br/>

UK's Unite union postpones one of two Gatwick Airport strikes

Britain's Unite trade union said on Tuesday it had postponed one of two strikes due to begin later this week at Gatwick Airport in order to allow passenger assistance staff to vote on what it described as a "greatly improved offer". Strike action involving ground handling staff at a different company is still expected to begin as planned on Friday however, Unite said, as a fresh offer made by their employer over the weekend was not likely to be approved by its members in a ballot closing on Thursday.<br/>

Volga-Dnepr threatens legal action over seized AN-124

Volga-Dnepr has reportedly threatened legal action against the Canadian government over its seizure of one of its Antonov AN-124 freighter aircraft. According to Russia’s Interfax news agency, the group sent a letter to Canadian authorities – including prime minister Justin Trudeau – asking for the dispute to be resolved amicably. However, the company threatened legal action if an agreement could not be found. “If the dispute is not resolved within six months of Canada’s receipt of the notification, Volga-Dnepr Airlines will formally initiate arbitration proceedings. Volga-Dnepr remains open to negotiations with Canadian representatives to resolve the issue and return the aircraft,” Volga-Dnepr is quoted as stating. The airline also pointed out that the aircraft was carrying Covid test kits from China to Canada when a notice to airmen (NOTAM) was issued prohibiting Russian aircraft from using the country’s airspace. As a result, the aircraft has been grounded at Toronto Pearson Airport since February 27 last year. This year the AN-124 was seized by the Canadian government as part of sanctions issued in response to the war in Ukraine. In June, Russia’s Foreign Ministry spokeswoman Maria Zakharova said the aircraft has been illegally detained and said its seizure was cynical and shameless theft.<br/>

Ukraine eyes grounded Russian cargo planes in Canada, Germany as asset seizures stall

Ukraine is seeking to confiscate Russian-owned Antonov An-124 “Ruslan” cargo planes stranded in Canada and Germany due to sanctions, potentially adding them to the Ukrainian company Antonov’s fleet, Ekonomichna Pravda reports. One An-124 belonging to Russian company Volga-Dnepr has been grounded at Toronto’s airport since late February, accruing $560,000 in parking fees. Three more are stranded at Germany’s Leipzig airport. According to Antonov lawyers, the planes’ flight certifications from the Russian operator are fraudulent, posing safety risks. Antonov, the original manufacturer, holds sole authority for recertification. This claim provides legal backing for Ukraine to seize the planes, though court appeals could delay transfers. Antonov Airlines currently operates five An-124s, which continue NATO missions from Leipzig despite the war. The addition of four seized Russian planes, worth over $240m combined, would expand Antonov’s fleet and capacity to serve NATO, according to the company’s April appeal to Ukraine’s Foreign Ministry.<br/>Antonov also needs funding to rebuild its aircraft damaged by Russia’s invasion, most notably – the iconic Mriya airplane destroyed in the first days of Russia’s invasion. However, confiscation faces legal roadblocks without laws enabling seizure of Russian assets, like Canada’s recent legislation. Though Germany joined the newly formed international Register of Damages from Russia’s invasion, no law yet allows asset seizures.<br/>

China air passenger numbers up 83.7% y/y in July - state media

China’s air passenger numbers in July jumped 83.7% from a year earlier, state media cited the aviation regulator as saying on Tuesday. A total of 62.4m air passenger trips were completed last month, state-owned China Central Television (CCTV) said. <br/>

Typhoon Lan rips across western Japan, causing travel chaos

Typhoon Lan ripped across western Japan after making landfall on the Kii Peninsula on Tuesday, leaving at least 23 people injured as heavy rainfall disrupted air and train services at the height of the summer holiday season. After making landfall near Cape Shionomisaki in Wakayama Prefecture, just before 5 a.m., the typhoon traversed northward across the country's main island of Honshu, bringing localized torrential rain from Tottori to Okayama prefectures, according to the Japan Meteorological Agency. The agency in the evening issued a heavy rain warning for Tottori Prefecture, with the local government in Tottori city also issuing its highest level of alert for its some 180,000 residents. Typhoon Lan is expected to travel northward over the Sea of Japan through Thursday and approach Hokkaido in northern Japan, the agency said, while warning of heavy rainfall over a wide area from western to northern Japan and possible flooding and landslides. In the city of Wakayama, a man in his 60s was found unconscious and remains in critical condition after being crushed by the outer wall of a building. Japan Airlines Co. and All Nippon Airways canceled Tuesday over 560 flights mostly departing and arriving in western Japan, affecting more than 50,000 passengers. Around 650 people were forced to stay overnight at Kansai airport, located on an artificial island in Osaka Bay, after rail and road access was cut off by the typhoon. Many people had to sleep at the airport, and the facility operator handed out sleeping bags and water to those stranded there.<br/>

Sydney airport emergency: man accused of making bomb threat on flight refuses to leave police cell to face court

A man accused of making a bomb threat on an international flight out of Sydney airport on Monday afternoon has refused to leave his police cell to face court. Canberra man Muhammad Arif, 45, has been charged with making a false statement about a threat to damage an aircraft, and for failing to comply with cabin crew’s safety instruction. The offences carry a maximum penalty of 10 years’ imprisonment and a fine of up to $15,000. On Tuesday morning, Arif refused to leave his cell at Surry Hills police station to come before the court, with magistrate Greg Grogin saying: “They will have to extract him if he is to come before the court.” The matter was repeatedly adjourned while lawyers tried to speak with Arif. “I have tried to see him,” Mostafa Daoudie, his lawyer, told the court. “But he has refused to come out of his cell.” Arif did not appear in court on Tuesday and the matter was adjourned to Wednesday. Bail has been formally refused. Arif was a passenger on Malaysian Airlines flight 122 from Sydney to Kuala Lumpur on Monday afternoon when the flight turned around because of an alleged disturbance on the plane.<br/>

Loss-making Wheels Up to give 95% stake to lenders for $500m

Money-losing private jet charter company Wheels Up Experience said on Tuesday it would give up 95% of its common stock in return for a $500m lifeline from Delta and two investment firms. The company said on Monday it was considering its options, including filing for bankruptcy protection. It also reported a second-quarter net loss that widened from a year ago. Wheels Up, which charters planes by the hour, has taken a slew of restructuring measures this year, including job cuts and management changes, as demand for private jets from wealthy travelers slowed after the pandemic. As part of a non-binding agreement, the funding would comprise a $400m term loan from partners Delta and investment firms Certares Management and Knighthead Capital Management. The US carrier would provide a $100m liquidity facility. "The partnership will create new opportunities for Wheels Up to drive strategic, operational and financial improvements for its customers," Delta CEO Ed Bastian said.<br/>