unaligned

The US Department of Transportation (DOT) has revoked certificate authority from Waltzing Matilda Aviation, the Massachusetts company that owns start-up regional carrier Connect Airlines. In a 16 November decision, the DOT terminated the certificate of public convenience and necessity issued on 5 July 2022 allowing Connect to engage in interstate air transportation “for reasons of dormancy”. But Connect Airlines has not given up on its plan to launch operations with regional turboprops and eventually retrofit them with hydrogen propulsion systems, chief executive John Thomas tells FlightGlobal on 17 November. ”While the order from the Department of Transportation came without any warning, we note that it does not prevent Connect from securing certificate authority again,” Thomas says. ”Connect’s focus has been on securing FAA certification, and we have fully demonstrated the ability to safely operate an airline while providing additional third-party validation to support our ongoing application.” Originally planned to launch last year, Connect has been struggling for several months to meet Federal Aviation Administration certification requirements as it neared deadlines to launch flights. The carrier’s FAA-issued interstate and foreign operating authorities had required it to start flying passengers by July and September 2023, respectively. The Bedford-based company has been attempting to launch passenger service using De Havilland Canada Dash 8-400s, starting with routes from Philadelphia and Chicago to Billy Bishop Toronto City airport. Those operations have not taken off, however, as Connect has requested several extensions on a dormancy waiver – most recently on 4 August, when it requested an extension until 31 December. That request was denied on 16 November as the carrier “did not provide the required information necessary to support a positive financial fitness finding”, the DOT says. <br/>

Norway's competition watchdog warned on Friday it may block Norwegian Air's bid for domestic rival Wideroe as it could lead to fewer and more expensive flights. Allowing the merger would leave only two carriers, Norwegian Air and SAS, to compete for customers in Norway, the regulator said. "We see a real risk that competition in the market can be weakened in a way that leads to higher ticket prices and a worse offering to passengers in Norway," Competition Authority Director Tina Soereide said in a statement. With only two players in the market it would also become easier to coordinate domestic prices, the regulator said. The deal announced on July 6 is valued at 1.13b Norwegian crowns ($103.32m), subject to final adjustments, and Norwegian Air has previously said it hopes to close the transaction by the end of the year. Norwegian and Wideroe both said they were disappointed by the regulator's preliminary decision, but that they still believed it was possible to obtain approval. "Based on the facts of the case, I am optimistic about the final outcome of the application process," Norwegian Air CEO Geir Karlsen said in a statement. Wideroe said a deal was important to secure travel in rural Norway. "We are faced with a European aviation industry undergoing major change, and even a combined Norwegian and Wideroe will become a small player in international context," the companies said a joint statement.<br/>

The state of Serbia will acquire the stake in its flag carrier Air Serbia held by Etihad Airways, the country’s finance minister, Sinisa Mali, revealed during a news conference, allowing it to take full ownership of the airline. “From a company that was in bankruptcy, we turned it into a leader that now flies on four continents, in a large number of countries, and we have become an example of how, through a successful airline, you can further contribute to the economic development of your country,” Mali exclaimed. “All necessary paperwork will be completed [on November 13],” he added without giving further details about the transaction. However, he described the move as “their business decision”. The state now intends to further develop Air Serbia, he said, and “next will be the procurement of large aircraft, the opening up of new destinations.” The United Arab Emirates airline will quit its co-ownership by selling its remaining 18% share. It bought a 49% stake in loss-making flag carrier Jat Airways in 2013 and rebranded it Air Serbia. At the end of 2020, the Serbian state upped its stake from 51% to 82%. The Serbian airline managed to settle a US$57.6m loan with an Etihad Aviation Group-affiliated vehicle before it matured at the end of September 2020, then a second one for US$63.9m a year later. According to the Belgrade-based investigative reporting site Balkan Insight, Serbia’s ruling Progressive Party has long proclaimed Air Serbia as a success story of partial privatisation, but not all of the contracts between Serbia and Etihad have been made public. The Serbian state is believed to have injected hundreds of millions of euros into the struggling company.<br/>

Cypriot-based carrier Tus Airways is to receive financial support through a shareholder loan, as the airline adjusts to disruption caused by the Israel-Gaza conflict. Tus Airways had been operating services to Israel after the outbreak of hostilities in early October – although traffic volume was low – but the cancellation of insurance war-risk coverage forced it to cancel Israeli flights from 4 November. Shareholder Knafaim Holdings, through its leasing arm, owns a 49.9% share of Tus Airways while a US entrepreneur, Kenneth Woolley, has the balance. Knafaim states that both shareholders have decided to provide a one-year loan totalling $3m – with each side contributing $1.5m. Each had already jointly supplied loans to Tus, the repayment date for which has been pushed to the end of June 2024. Tus Airways operates a small fleet of Airbus A320-family jets on services mainly within the Mediterranean region.<br/>

Israeli leisure operator Israir Group is looking to secure financial support from the government as a result of disruption caused by the Gaza conflict. The company states that it expects to receive “significant and full assistance” from the government for as long as the conflict persists, and is holding talks with the transport and finance ministries on a framework for the funding. Israir Group says it believes its activity is “essential and strategic” to the country. “[We] consider it very important to be involved in assisting evacuees during this period, and will continue to do as much as possible In order to help,” says the operator. The transport ministry has recently published criteria for distribution of funds for each ticket sold for transferring residents. Israir Group estimates it will receive at least 6m shekels ($1.6m) in revenues from the state budget for participating in evacuation flights between Tel Aviv and Ramon. It says it is working to submit an application for support, in line with the ministry’s instructions, adding that the eligibility period and framework budget might be extended.<br/>

Lessors are moving to reclaim their aircraft from flybig after the regional carrier suspended its flights earlier this month. The airline only began operations three years ago and concentrated on connecting second-tier Indian cities, serving routes secured through the Indian government's UDAN regional aviation improvement scheme. flybig was operating one ATR72-500, two ATR72-600s, and two DHC-6-400s. In October, the airline returned the ATR72-500 (VT-FBA (msn 955)) to Avation by mutual agreement' having not used it for revenue flights since late August. flybig told Indian news outlets that the flight suspensions have occurred because their remaining aircraft went out of service for maintenance purposes. “flybig would like to emphasize that current events are a result of our decision to surrender the ATR - Avions de Transport Régional aircraft due to the aircraft’s technical issues,” flybig CFO Gokul Indani told the Hindu Business Line. He added that supply chain issues and difficulties securing spare parts had affected the fleet's operational efficiency, caused cancellations, and added to costs. "The decision to surrender the ATR aircraft was made due to a global shortage of spare parts, which has extensively affected the operational efficiency of our fleet, leading to increased costs and delays. This has forced us to pause our operations in certain sectors, including the Northeast. We remain operational in Hindon-Bathinda and other routes," a spokesman said.<br/>

Avia Solutions Group’s Indonesian unit has inducted its first passenger aircraft, as part of fleet expansion plans. BBN Airlines Indonesia, which specialises in offering wet-lease capacity, adds four aircraft to its fleet: a single Boeing 737-400 freighter, as well as three -800 passenger aircraft. The four aircraft add to its existing freighter fleet of two 737s. BBN Indonesia says it will use the new jets on domestic and international routes from next year, “with a focus on the [Mainland China] to Bali route”. Martynas Grigas, BBN Indonesia’s chairman, notes that wet-lease operators are “still a rarity” both in Indonesia and Asia. “BBN Airlines Indonesia is expected to give an extra boost to support the ever-growing aviation needs in Indonesia. This expansion will allow us to better serve our customers and meet the growing demand from airline, logistics, and tour operator companies,” Grigas adds. BBN Indonesia secured its air operator’s certificate on 31 August this year, and had disclosed a target of nine-aircraft fleet by the end of the year.<br/>