UK competition regulators are to re-energise the long-running probe into the IAG and Oneworld transatlantic joint business arrangement, as the air transport sector continues to recover. The Competition and Markets Authority had effectively put its investigation on hold, with interim remedies in place, as the Covid-19 pandemic disrupted airline operations. But it states it will assess the joint agreement “in the context” of the post-pandemic recovery, gathering further information and requesting data. Five Oneworld or IAG-owned airlines – British Airways, American Airlines, Aer Lingus, Iberia and Finnair – have signed up to the transatlantic pact, which was previously investigated by the European Commission. But the UK’s withdrawal from the EU means the Commission no longer conducts competition oversight for the UK market. With a 2020 expiry date approaching for commitments made during the Commission’s earlier assessment, the Competition and Markets Authority opted in October 2018 to open its own probe on the state of the airlines’ agreement. IAG and American Airlines offered new commitments to the regulator in early 2020, but the onset of the pandemic led the regulator, later that year, to decide against accepting them. In order to circumvent the expiry of the previous commitment regime, the Competition and Markets Authority introduced interim measures to plug the resulting “enforcement gap”. These interim measures essentially extended the terms of the prior EU commitments until March 2024, giving the market a period in which to stabilise. The Competition and Markets Authority aimed to complete its investigation – and consider wheher a longer-term remedy was necessary – before these interim measures expired. But the prolonged recovery forced the regulator last year to extend the interim measures by another two years, until March 2026.<br/>
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Food service on domestic airlines has drastically changed in recent years. American Airlines just built a 214,000-square-foot facility at Dallas-Fort Worth International Airport. It prepares up to 15,000 meals a day, with the help of robots, for more than 800 flights daily. The new kitchen features more automation to keep up with demand and to minimize catering delays as the number of people traveling breaks records. Global travel demand is expected to double by 2040, according to the IATA. “We have some of the highest load factors we’ve ever had in the history of American. And so we wanted to build the next generation of catering facility that would grow with us,” said Brady Byrnes, senior vice president of inflight and premium guest services at American Airlines. Nearly 3m passengers fly every day in the U.S., according to the TSA. Recently, airlines have seen an increase in passengers buying up to premium seats, putting pressure on airlines to offer better food options — and more of them.<br/>
Hong Kong's Cathay Pacific Airways said on Friday it had purchased 32 Airbus A321-200neo aircraft from Airbus for a basic price of $4.66b. The deal follows an agreement between an Airbus unit and the aircraft acquisition facilitators of Hong Kong's flagship carrier in September 2017. Cathay expects the aircraft to be delivered by the end of 2029, and expand the fleet capacity of Hong Kong Express, one of its units. Hong Kong-based conglomerate Swire Pacific and Air China, which together hold more than 50% of the voting rights in Cathay, have approved the deal, the airline said in a filing. "Swire Pacific and Air China do not have any interest in the transaction other than as shareholders," Cathay said.<br/>
Japan Airlines has pushed back the launch of Airbus A350-1000 operations as it blames supply chain “disruptions” for late delivery of aircraft components. The Tokyo-based carrier was to have launched flights between Tokyo Haneda and New York in November – the start of the Northern Winter schedule – with the new A350s. However, JAL now says this launch will now take place “before the end of the year”, but does not disclose an exact date. “The commencement of operations may be subject to change depending on aircraft delivery status. More detailed information on the timing and routes will be provided…once confirmed,” the airline states. The disclosure comes as the Oneworld carrier unveiled cabin products – including seat count for the first time – for the A350s, which is set to become its new flagship aircraft replacing its fleet of Boeing 777-300ERs. The new -1000s will seat 239 passengers in four classes, compared to 244 seats on its 777-300ERs. The new aircraft will feature five more business class seats and eight more economy class seats, but a reduction of 16 premium economy and two first class seats. JAL has picked Safran to manufacture its premium class seats, while Recaro has been named as its economy class seat supplier. First and business class will feature enclosed private suites, while premium economy seats are fixed back, says JAL. The airline first disclosed plans to make the A350 its new flagship in May 2021, in a medium-term business update that was released alongside its full-year financial results. According to Cirium fleets data, the airline has commitments for 13 A350-1000s. JAL also has 16 smaller -900s in service on domestic routes and a further two more examples on order.<br/>