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Icelandair has tentatively agreed a strategic partnership with Middle Eastern carrier Emirates, potentially leading to a codeshare between the two. The agreement – currently in the form of a memorandum of understanding – was reached at the ITB travel show in Berlin. Emirates has an interline tie-up with Icelandair, but states that the two carriers are working towards expanding this into a reciprocal codeshare. Icelandair operates as a transatlantic bridge carrier through its Reykjavik hub. While Emirates does not serve Reykjavik, and Icelandair does not serve Dubai, the codeshare would provide a travel connection through gateway destinations in Europe. Emirates would place its ‘EK’ designator on the “best connecting” Icelandair flights, it says, while Icelandair’s ‘FI’ code would be put on various Emirates services from European cities to Dubai and beyond. The specific destinations covered by the potential codeshare – still subject to regulatory approval – have yet to be disclosed. Emirates will be the seventh airline to codeshare with Icelandair. “We have and will continue to expand our network of partner airlines, focusing on working with airlines that offer great service and connectivity,” says Icelandair Group chief Bogi Nils Bogason.<br/>

Rakesh Gangwal, co-founder of Indian carrier IndiGo, will sell a stake of up to 3.3%, worth 37.3b rupees ($451m), in operator Interglobe Aviation through a block deal, news channel CNBC-TV18 reported on Thursday, citing sources. The floor price for the block deal has been set at 2,925 rupees per share, the report said, which is a 5.8% discount to Interglobe's closing price on Thursday. IndiGo did not immediately respond to a Reuters request for comment. CNBC-TV18 did not disclose when the block deal would take place. Gangwal holds a 11.72% stake in the airline he founded in 2006 with Rahul Bhatia, according to latest available exchange data. Gangwal and his wife, Rekha Gangwal, have reduced their shareholding in the company over the last year, with the latter completely exiting the firm last August.<br/>

European routes awarded to South Korea's second-largest low-cost carrier T'way Air from the merger of Korean Air-Asiana are a golden opportunity to differentiate T'way as a long-haul carrier in Korea's crowded budget space, senior executives told Reuters. EU competition authorities last month said South Korea's biggest carrier Korean Air must surrender routes to four European cities to T'Way as a condition of its approval of Korean's pending merger with Asiana Airlines. "To get this kind of a profitable route and slot from Korean Air is a very rare opportunity," said Kim Hyung-yi, T'way senior vice president. T'way will begin flying to Paris in June, Rome in August, Barcelona in September, and Frankfurt in October, Kim said. Only one other Asia-Pacific low cost carrier (LCC) currently operates direct flights to western Europe — Singapore's Scoot. South Korea is heavily reliant on air travel as its only land border is with North Korea with which it is technically at war. It has seven low-cost carriers and one hybrid carrier which fly domestically, within Asia and some routes to north America and Australia. Under the EU deal, Korean Air has to provide T'way with slots, traffic rights and access to suitable aircraft. T'way CEO Jeong Hong-geun said Korean Air will lease five wide-body A330-200 planes to T'way, and provide 100 pilots and maintenance support. These cannot carry as many passengers as T'way's existing three long-haul wide-body A330-300 planes, but the A330-300s cannot fly the extended distance to Europe needed to avoid currently restricted Russian air space. Long term, T'way intends to source its own pilots and larger capacity planes, Jeong said.<br/>

Two Singapore-based low-cost carriers – Scoot and Jetstar Asia – have announced expansions on their Southeast Asian networks. Jetstar Asia will in June launch flights to Krabi in Thailand and resume operations to Clark in the Philippines. Flights to Krabi will be operated six times weekly from 7 June, while the Clark flights begin on 16 June. The Qantas unit will operate four weekly flights to Clark before adding another frequency in October. Says Jetstar Asia chief John Simeone: “We’re excited to add these two popular destinations, responding to demand, providing our customers with more incredible low-cost travel options and supporting the travel and tourism industries in these two critical markets.” Jetstar Asia will be the second carrier to fly between Krabi and Singapore, after compatriot Scoot, which will be upping capacity with three additional weekly flights. Scoot’s network expansion comes as the Singapore Airlines Group unit prepares to take delivery of its first Embraer 190-E2 aircraft. The airline on 5 March disclosed the E2’s initial network, including the addition of two regional points from Singapore. The airline announced that the E2s – on lease from lessor Azorra – will be flying to Samui in Thailand from May, and Sibu in Malaysia from June. In addition, the E2s will be deployed on flights to Hat Yai and Krabi in Thailand, as well as to Kuantan and Miri in Malaysia. Meanwhile, other low-cost operators in the region have also disclosed network expansion plans. Vietjet on 5 March announced new flights from Hanoi to Melbourne and Hiroshima. The twice-weekly flights between Hanoi and Melbourne will commence from 2 June, while flights to Hiroshima are operated twice a week, and begin on 12 May. States the airline: “The new services are crucial in Vietjet’s plan to expand its flight network in response to pent-up travel demand, stimulating cultural exchange, education, economic development, and tourism between Vietnam and other countries in the Asia-Pacific region.”<br/>

Lao Airlines will start operating flights between Lao's Vientiane and Cambodia's Phnom Penh, hoping that direct air travel between the two capitals will bring more tourists and investors to Laos. International travel and tourism industry is booming, especially in the Association of Southeast Asian Nation (ASEAN) region, with air travel being tourists' preferred means of transport, Managing Director of the Lao national carrier Khamla Phommavanh was quoted as saying by the Lao National TV in a report on Thursday. Market research showed increased demand for travel between Laos and Cambodia, particularly after the COVID-19 pandemic, so the decision was made to launch direct flight service between the two capitals, according to the report. The flight service will start on March 19, with departing from Wattay International Airport in Lao capital Vientiane three times a week. The flight takes one hour and 20 minutes and will be served by A320 aircraft.<br/>