JetBlue Airways and Spirit Airlines on Monday urged a US appeals court to overturn a judge's ruling that blocked their $3.8b merger at the US Department of Justice's request. The airlines in a brief told the Boston-based 1st US Circuit Court of Appeals that the judge wrongly barred their merger despite recognizing it would "improve competition, and thus reduce prices, for the vast majority of consumers." The airlines said the rationale driving the deal was by buying Spirit, JetBlue would roughly double in size and become a viable challenger to the four carriers that dominate US airline travel. Yet they said that U. District Judge William Young on Jan. 16 nonetheless held that the deal violated federal antitrust law after he "improperly chose to elevate the interest of a small set of hypothetical consumers over the interest of everyone else." Young, who presided over a non-jury trial, concluded the deal would harm consumers by eliminating no-frills Spirit's low fares and its ability to put pressure on other higher-priced airlines. The Justice Department is slated to respond to the airlines' appeal on April. 11. The court plans to hear arguments in June, ahead of the July 24 deadline the companies' merger agreement set out to close the deal.<br/>
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Air Transat said on Monday its cabin crew members had ratified a new agreement with the airline after voting in favor of a recommendation by the Canadian government's mediation body, averting fears of a strike. Unions in the aerospace, construction, airline and rail industries have pressed over the last two years for higher wages and more benefits amid a tight labor market. The Canadian Union of Public Employees, which represents about 2,100 cabin crew members at Air Transat, had received certain recommendations from the mediators after the union and the airline reached an impasse. About 63% of flight attendants voted in favor of the Federal Mediation and Conciliation Service mediators' recommendation, the Canadian leisure carrier said on Monday. The collective agreement is retroactive to Nov. 1, 2022, and will be valid until Oct. 31, 2027. Earlier this month, the cabin crew members had rejected a labor deal for the second time. Cabin crews at carriers in Canada and the United States are demanding to be paid for more of their hours at work - a fundamental change from how the industry currently compensates them by paying largely only when the aircraft is in motion.<br/>
Las Vegas-based Allegiant Air and Mexico’s VivaAerobus have asked the US Department of Transportation (DOT) to resume reviewing a proposed alliance between the two ultra-low-cost carriers (ULCC). The DOT halted that review last year, citing possible violations by Mexico of the US-Mexico air transport agreement. In a joint filing with the DOT on 23 February, the airlines said approval delays are preventing “the addition of innovative ULCC entry into markets dominated by” mainline carriers American Airlines, United Airlines and Delta Air Lines. Travellers are losing out on new routes and lower fares that Allegiant and Viva plan to add as part of their alliance, they add. “Facilitating the launch of this first-of-a-kind joint venture between two ultra-low-cost carriers would immediately make travel to many destinations in Mexico far more affordable and efficient, thereby benefiting millions of Americans,” the pair write in their filing. “Continued delay in this docket prevents innovative entry in a market dominated by legacy carriers American, United and Delta-Aeromexico, benefits those carriers alone, withholds from US consumers the new routes and lower fares the Allegiant-Viva alliance will offer, and thwarts the Open Skies and competition policies of the United States.” Allegiant and Viva pitched their proposed alliance in December 2021. Mexican authorities approved it in October 2022. But last July the DOT said it suspended its review on grounds that capacity restrictions at Mexico City’s Benito Juarez International airport may have violated the US-Mexico air transport agreement. Mexican authorities had been attempting to force passenger airlines to move flights to the newer but more-distant Felipe Angeles International airport, which also serves the Mexico City region, by capping aircraft movements and banning cargo carriers from operating at the older airport.<br/>
The boss of Ryanair has said holidaymakers will face higher fares this summer due to new Boeing planes being delivered late. CE Michael O'Leary said the delayed delivery of the planes will constrain capacity for passengers. He said that Ryanair's ticket prices could be up to 10% more expensive this summer as a result. Ryanair hopes to get some compensation, but is focused on getting planes delivered, O'Leary added. He said that a delivery of 57 Boeing 737 Max 8200's was due by March, but the firm thinks only 40-45 may arrive in time for the summer season. Boeing has been facing scrutiny since an incident in January when a piece of one of its jets blew out during a passenger flight. The Alaska Airline passenger flight did not lead to serious injuries but forced an emergency landing. As a result, O'Leary said, the US manufacturer had the US regulator, the FAA, "crawling all over them". Major concerns have been raised about quality control for new Boeing aircraft, sparking a slowdown in production speed.<br/>
Pilots of an Embraer 195 that hit lighting structures on take-off from Belgrade had been warned to check they still had sufficient runway to depart, after lining up at a different intersection than planned, Serbian investigators have disclosed. The Marathon Airlines twinjet – with 106 passengers and five crew members – had been operating an Air Serbia service to Dusseldorf on 18 February. Serbian traffic investigation authority CINS states that the crew had calculated take-off parameters for a runway 30L departure from intersection D6. The Serbian aeronautical information publication gives the distance available from D6 as 2,349m. CINS says the crew testified that the take-off calculation was “double-checked”. The aircraft was instructed by air traffic control to proceed to intersection D6 via taxiways F, G and A which the crew correctly read back. This taxiing direction would have taken the aircraft past intersection D5 before reaching D6. But while the crew informed the tower, at 17:35, that they were approaching D6 and were ready for take-off, CINS says the tower controller transmitted an “urgent message” about a minute later, asking if they were aware that they had taken the turning for D5. The controller pointed out that the available runway length from D5 was only 1,273m and suggested this was not sufficient. CINS says the crew requested a few moments to carry out checks. The crew subsequently testified that the take-off parameters were checked with the first officer’s handheld tablet. Although the controller had told the crew that, if necessary, they could backtrack to intersection D6, the crew responded some 30s later that they had confirmed the aircraft could take off. After reconfirming with the crew, the controller gave clearance for a D5 intersection take-off, informing the crew that there was no wind.<br/>
Nigerian carrier Air Peace is to open a route between Lagos and London Gatwick using aircraft wet-leased from Norse Atlantic Airways. Norse Atlantic states that it will begin operating the service on Air Peace’s behalf from April, initially for a two-month period. The Scandinavian carrier uses a fleet of Boeing 787s, a number of which are wet-leased to Spain’s Air Europa. Norse Atlantic chief Bjorn Tore Larsen says the collaboration with Air Peace offers an opportunity to “leverage our expertise in charter operations”. Air Peace has obtained Gatwick slots which Norse will use during the wet-lease period. “As we make a foray into the European market, we are confident that this strategic partnership will further position us to surpass the expectations of our customers,” says Air Peace chief Allen Onyema. Norse will operate four-times weekly on the route. It says there is “potential for a longer-term agreement” beyond the initial term. Larsen says the carrier aims to deliver a “reliable and high-quality service” to the Nigerian company.<br/>
Pakistani investigators have disclosed that the pilots of an Airbus A320 which fatally crashed in Karachi had been fasting for the holy month of Ramadan, and that this probably impaired their judgement. But the inquiry has been unable to determine whether the effects of fasting had any specific consequences on the crew’s performance. The Pakistan International Airlines aircraft had conducted a highly-unstable approach to the airport, ultimately striking the runway with its landing-gear still retracted. Its crew attempted a go-around but the impact damage to the A320’s engines caused it to lose thrust and height, and it came down in a residential suburb of Karachi. Investigators point out that the 22 May 2020 accident occurred during Ramadan, a month in which followers of Islam practice fasting during daylight hours. But the inquiry’s final report states: “Clear and precise regulations were not available to restrict flying while fasting at the time of accident.” Pakistan’s civil aviation authority prohibited the practice of flying while fasting in the aftermath of the crash which only two of the aircraft’s 99 occupants – both passengers – survived. One additional fatality occurred on the ground. Both pilots of the A320 were participating in the fast for Ramadan. Each had a regular sehri and iftar – morning and evening meals, eaten before sunrise and after sunset – and declined snacks from the cabin crew. The inquiry states that fasting may affect a crew’s flight performance by reducing spatial cognition and lowering blood sugar or hydration. It adds that it may “invert” normal day-night routines, affecting circadian rhythms and general health.<br/>
The aviation industry is experiencing a “purple patch” with demand for seats far outstripping capacity amid a long wait for new aircraft and a shortage of pilots further discouraging any fresh competition, Tony Fernandes, the founder of low-cost carrier AirAsia, said. Malaysia-based AirAsia for its part is set to witness its “best ever period” with most of the carrier’s 240 planes back in the sky and “airfares at their best,” Fernandes said Monday. “I’ve never been this bullish before,” Fernandes, who started AirAsia 23 years ago, said. “Southeast Asia is going through a renaissance period of sensible economics, and that’s a good thing.” On the back of that, AirAsia plans to raise as much as $600m in coming months, Fernandes said, as he tries to pull off a merger between his two aviation businesses — long-haul carrier AirAsia X Bhd. and short-haul airline AirAsia, which is currently a unit under Fernandes’ more diversified company Capital A Bhd. Following the merger, which is expected to conclude mid-year, the new entity will look to raise up to $400m via selling equity, Fernandes said. Citigroup Inc. and US advisory bank Evercore Inc. have been appointed to lead the capital raising. A $200m revenue bond, securitized against revenue from new routes, is also expected to be finalized soon, he said. Fernandes said the merger of the two airlines will create a new firm called AirAsia Group that will subsequently take over AirAsia X’s listing on Bursa Malaysia. The company may also do away with its AirAsia X branding as the aviation businesses consolidate. AirAsia has ambitions to expand its footprint from a predominately Asian airline to a global low-cost carrier with a more extensive network. It plans to start flying to Kazakhstan, its first route in Central Asia, later this year. <br/>
The parent company of Malaysian budget airline AirAsia, Capital A Berhad, is looking to raise up to $400m in equity as part of a planned merger to bring its long and short-haul operations under one brand, its CEO said on Monday. Group CE Tony Fernandes in an interview said that would be on top of a $200 million bond-raising the company is hoping to conduct in the next few weeks, as it awaits regulator and shareholder approval to complete the sale of its aviation business to long-haul unit AirAsia X Bhd. The proposed deal, announced last month, would see the formation of a single airline AirAsia Group, he said. "(We hope) the acquisition by AirAsia X of Capital A aviation assets will be done by June and July," Fernandes told Reuters. Fernandes did not provide details on what the financing would be used for. Both Capital A and AirAsia X have undergone restructuring after being classified by Malaysia's stock exchange as financially distressed, due to strict pandemic travel restrictions. AirAsia X was removed from the classification in November, after undertaking measures to improve its financial position, while Capital A has said it hopes to present a plan to the bourse by June.<br/>Fernandes said the aviation industry was currently experiencing its "best period", with greater room to expand routes amid an industry-wide supply crunch and fewer competitors. "We feel really confident about the future," he said. Fernandes said he hoped to eventually list all of the group's remaining non-aviation businesses, which include mobile payments firm BigPay, logistics arm Teleport, and online travel agency AirAsia MOVE. Last year, the company also said it plans to list its brand management unit in the United States via a merger with special purpose acquisition company, Aetherium Acquisition Corp.<br/>
Pilots from Network Aviation will resume protected industrial action for three days this week. The Australian Federation of Air Pilots (AFAP), which suspended planned strikes over the weekend due to the risk from ex-Tropical Cyclone Lincoln, are planning three rolling one-day work stoppages for Wednesday, Thursday and Friday now that the threat has passed. Network Aviation operates Qantas’ FIFO and charter services, as well as scheduled QantasLink flights, in WA. In a statement, AFAP senior industrial officer Chris Aikens addressed Qantas’ tactic of flying in 737-800s and charter planes from other airlines to break the strike, branding it a waste of money. “Qantas management would prefer to spend up to $8m a day trying to ride this storm rather than investing in its pilot workforce in Western Australia,” he said. “What the pilots are asking for is just a drop in the ocean for the company given the half-year profit of $1.25b posted by Qantas on Thursday. “Despite the need to take further action, we remain open to meeting with the company in the hope that it can offer something that will be acceptable to this pilot group.” According to Aikens, at an AFAP members’ meeting earlier this month attended by more than half of the Network Aviation workforce, most indicated they “may soon leave the company to fly for other airlines, including those overseas offering far better pay and conditions”. “As attracting and retaining pilots becomes even more difficult for Network Aviation, the impact on Qantas and the WA economy will be significant if Qantas fails to address the inequities of treating Network pilots like second-class citizens,” he said.<br/>