star

Lufthansa's ITA Airways stake set to face full EU competition inquiry

EU regulators have not sought feedback from rivals and customers on Lufthansa's remedies related to its bid for a minority stake in ITA Airways, suggesting the deal faces a full-scale investigation, three people with direct knowledge of the matter said. Lufthansa put in its offer to the European Commission on Jan. 8. It was prepared to cede slots at Milan-Linate Airport, where it overlaps with the Italian state-owned company on roughly half a dozen European routes to Lufthansa hubs in Frankfurt, Munich, Vienna and Zurich, sources have previously told Reuters. The Commission declined to comment. The EU competition enforcer typically starts a market test once remedies are offered by asking rivals and customers for their views on whether these address antitrust concerns. That the Commission has not launched a market test on Lufthansa's remedies suggests the EU executive does not think they are sufficient and that an in-depth EU investigation would follow the regulators' preliminary review of the deal that ends on Jan. 29, the people said.<br/>

SAS to open transatlantic service to SkyTeam hub Atlanta

Star Alliance carrier SAS is to open a new transatlantic service to Atlanta, a key hub for rival alliance SkyTeam which the airline is set to join. It will start serving Atlanta from Copenhagen on 17 June. The carrier’s reservations system indicates it will use Airbus A330-300s on the route. This will bring to nine the number of North American destinations to which SAS operates. Atlanta is a hub for key SkyTeam carrier Delta Airlines. SAS states that, under an agreement with Delta, passengers will be able to take onward flights to destinations – including cities in the southern USA, Caribbean and Latin America – served by the US carrier out of Atlanta. “This development means an expanded offering for SAS passengers,” says SAS CE Anko van der Werff. SAS is undergoing restructuring through a US Chapter 11 process, which involves a recapitalisation of the airline. SkyTeam’s Air France-KLM Group is to become a shareholder of SAS through participation in this recapitalisation and, as part of the scheme, SAS will leave Star to join SkyTeam.<br/>

Jeju Air, T'way to benefit from Korean Air's acquisition of Asiana

Jeju Air and T’way Air are expected to benefit from a planned acquisition of Asiana Airlines by Korean Air, as the integrated mega-sized carrier is set to transfer the rights of their lucrative businesses to the two low-cost carriers (LCC), according to industry officials, Tuesday. Shares of the nation’s two largest LCCs have been on course for a gradual recovery in recent weeks on growing hopes that they will be able to widen their revenue streams after the acquisition. Korean Air had to give up licenses for four European routes and sell Asiana’s cargo unit, as part of its remedy measures for European antitrust authorities to consider the possibility of approval. The European Commission (EC) is still reviewing the deal, but is known to have reached an internal consensus that it will grant a conditional approval for the acquisition. Earlier, the European watchdog shared its plan to finalize its decision by Feb. 14. Jeju Air is reviewing its own acquisition of Asiana’s cargo unit, in a move to diversify its sales channels in the post-pandemic era. Asiana’s cargo business is considered a stable revenue generator, chalking up 1.13t won ($849m) in sales in the first three quarters of last year. A spokesman at the nation’s largest LCC declined to confirm details on the matter, saying that nothing specific has been confirmed internally for the time being. Jeju Air's share price has been on a gradual recovery for the past three months in anticipation of the cargo business acquisition. It hovered at around 12,700 won as of Tuesday, up more than 20% from three months earlier. Story has more.<br/>

Air NZ flies almost 16m passengers in 2023

Air New Zealand has released some of its full-year figures for 2023, saying it flew almost 16m passengers last year. In its first full year of unrestricted travel since COVID-19, New Zealand’s flag carrier transported 15.9m passengers and operated 169,835 domestic and international flights, up from 12.3m passengers and 152,000 flights in 2022. “We welcomed more than 10.6m travellers onboard our domestic flights, a notable rise from 9.4m customers in 2022,” said Air New Zealand’s chief customer and sales officer, Leanne Geraghty. “Our international routes also saw significant growth, with more than 5.3m customers compared with 2.9m in 2022.” The airline’s cargo division also transported more than 30,000 tonnes of export freight last year, including 6,900 tonnes of seafood, 5,500 tonnes of fresh produce, 2,400 tonnes of meat, 100 tonnes of pharmaceuticals and emergency relief supplies, and 16 tonnes of valuable goods. Air New Zealand last May announced a $3.5b NZD investment in fleet expansion and upgrades over the next five years, with plans to buy eight new 787-9 Dreamliners and five Airbus A320neos as well as an extra 777-300ER, plus interior overhauls for its existing 14 Dreamliners. At the time, CEO Greg Foran said this represented a “significant commitment” to New Zealand’s tourism industry. “By investing in new and retrofitted aircraft, adding more seats to our international routes, and increasing our marketing presence in key markets, we’re making it even easier for visitors to tick New Zealand off their bucket lists,” he said.<br/>